ProductsDesktop Server OpenStack Platform For IBM POWER For IBM System z For SAP Business Applications Satellite Management For Scientific ComputingExtended Update Support High Availability High Performance Network Load Balancer Resilient Storage Scalable File System Smart Management Extended Lifecycle SupportAccelerate Automate Integrate Red Hat JBoss BPM Suite Developer Studio Portfolio Edition Web Framework Kit Application Platform Web Server Data Grid Portal A-MQ Fuse BRMS Fuse Service Works Operations Network JBoss Community or JBoss enterprise Red Hat JBoss Data Virtualization
SolutionsWhy Red Hat Why open hybrid cloud? The new IT Public cloud Cloud resource library Private cloud Infrastructure-as-a-Service (IaaS) Platform-as-a-Service (PaaS) Cloud applications and workloadsSolaris to Red Hat Enterprise Linux Migration overview Migrate from your UNIX platform How to migrate to Red Hat Enterprise Linux Upgrade to the latest Red Hat Enterprise Linux release JBoss Enterprise Middleware Benefits of migrating to Red Hat Enterprise Linux Migration services Start a conversation with Red Hat
TrainingPopular and new courses Red Hat JBoss Administration curriculum Core System Administration curriculum Red Hat JBoss Middleware development curriculum Advanced System Administration curriculum Linux Development curriculum Cloud Computing, Virtualization, and Storage curriculum
ConsultingSOA and integration Business process management Cloud and virtualization Custom Software Development Enterprise Data and Storage Systems management Migrations
Red Hat Announces Stock Repurchase Program
RaleighUnited States, September 29, 2004
Red Hat, Inc. (NASDAQ: RHAT), the world's leading provider of open source solutions to the enterprise, today announced that its Board of Directors has authorized the repurchase of up to $100 million of the Company's common stock from time to time on the open market or in privately negotiated transactions.
"We believe, that based on current market prices, our stock is undervalued and that it is in the best interest of our shareholders for us to acquire shares in the open market. In addition, our repurchase program will help to offset dilution associated with our employee stock plans," said Matthew Szulik, Chairman and Chief Executive Officer.
The timing and the amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes.
The repurchase program will be funded using the Company's working capital. As of August 31, 2004, the Company had cash and investments in debt secuirties of approximately $997.7 million.
Red Hat had approximately 183 million shares of common stock outstanding as of May 31, 2004.
About Red Hat, Inc.
Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com
Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.
LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.