RALEIGH — Open-source software company Red Hat (NYSE: RHT) saw its stock drop by 12 percent in after-hours trading Thursday after it providing guidance for the second quarter and full year below Wall Street expectations.

The Raleigh-based company said it expects to report earnings of 81 cents per share in the second quarter on revenue between $822 million and $830 million.

Analysts had projected earnings of 89 cents per share on revenue of $854 million.

For the year, the company projected earnings between $3.44 per share and $3.48 per share on revenue of $3.375 billion to $3.41 billion.

Analysts were expecting revenue of $3.45 billion for the year.

“Given the headwinds that have developed in foreign exchange rates since that time, we are adjusting our full year total revenue guidance by approximately $50 million, solely to account for the change in FX rates,” said Chief Financial Officer Eric Shander in a statement.

Red Hat’s shares fell $19.88, or 12 percent, to $145.85 in after-hours trading. The stock closed Thursday at $165.73, down $3.49.

The company reported first-quarter net income of $113 million, or 59 cents per share, up from net income of $75 million, or 41 cents per share, in the first quarter a year ago.

Revenue in the quarter was $814 million, up 17 percent.

Adjusted for non-cash share-based compensation expense, amortization of intangible assets, transaction costs related to business combinations and non-cash interest expense related to the debt discount, first-quarter earnings were 72 cents per share, which beat estimates of 69 cents per share.

“The move to hybrid cloud architecture continues to be a strategic priority for our customers,” said Chief Executive Officer Jim Whitehurst in a statement. “We again delivered strong revenue growth in Q1 as customers continued to adopt our cloud enabling technologies for their applications,”

This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism