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Published Thu, Dec 24, 2009 04:43 AM
Modified Wed, Dec 23, 2009 08:42 PM

Red Hat reports quarterly gain

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Red Hat shares rose 5 percent Wednesday in the wake of robust quarterly results released by the Linux software company.

After the markets closed Tuesday, the Raleigh company reported an 18 percent rise in revenue for its fiscal third quarter that ended Nov. 30.

Profits totaled $16.4 million, or 8 cents per share, down from a year ago. But after adjustments for stock compensation and a one-time charge for a lawsuit settlement, profits totaled 17 cents per share - 1 cent better than analysts expected.

"People are starting to spend like they're seeing a recovery," CEO Jim Whitehurst told Bloomberg News after the company's conference call. Red Hat's Linux software is free, but customers pay for maintenance and support.

Red Hat also raised its sales forecast for the current fiscal year to between $743 million and $745 million. The consensus projection among analysts was $736 million.

Red Shares closed Wednesday at $31.43, up $1.56. Shares have more than doubled this year.

Staff writer David Ranii

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