Over the past two years, 48 percent of Red Hat's income before taxes has come from "Other Income," specifically interest income and capital gains on investments. For comparison, "Other Income" drives well under 10 percent of Microsoft's, Oracle's, and IBM's income before taxes. I wondered if Red Hat's revenue base, (in the hundreds of millions vs. these other vendors whose revenue is in the billions), was a reason for the difference. So I selected Tibco Software, whose revenue base is within $100M of Red Hat's and was founded in 1997, two years after Red Hat. Only 12 percent of Tibco's total income before taxes comes from "Other Income." I tried to look at Novell, but they've gone through years of negative Operating Income, so the ratios don't compute."
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