Red Hat Inc. (NYSE: RHT) reported first-quarter fiscal 2015 results after markets closed Wednesday. The Linux software distributor reported adjusted diluted earnings per share (EPS) of $0.34 on revenues of $423.75 million, compared with EPS of $0.32 on revenues of $363.26 million in the same period a year ago. The consensus estimates called for EPS of $0.33 on revenues of $414 million.

The best news from Red Hat is that subscription revenue accounted for $372 million (88%) of total revenues. That is an increase of 18% from a year ago. Operating cash flow rose 16% and liquidity totaled $1.4 billion, after buying back $80 million in stock during the quarter.

Red Hat did not offer guidance, but consensus estimates call for second-quarter EPS of $0.38 on revenues of $426.87 million. For the full 2015 fiscal year, EPS is estimated at $1.55 on revenues of $1.75 billion.

The company’s CEO said:

We now count 94% of the Fortune 500 and 90% of the Fortune Global 500 as customers. These are some of the most sophisticated IT organizations in the world, and many continue to increase their purchases from Red Hat to modernize their IT infrastructure with cloud enabling technologies. As evidence of this demand and Red Hat’s strong market position, we closed a record number of first quarter deals of a million dollars or more.

Red Hat shares were up about 5% in premarket trading Thursday, at $55.77 in a 52-week range of $41.89 to $61.45. The consensus price target from Thomson Reuters was around $64.40 before the report.

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