Red Hat, Inc. (Nasdaq:RHAT), the leader in developing, deploying and managing open source solutions, today announced that its board of directors has authorized a stock repurchase program of up to 10% of outstanding common shares over the next twelve months. The program is effective immediately.
This authorization to repurchase shares was facilitated in part by the Emergency Order issued by the SEC on September 14, 2001, which grants temporary relief with respect to certain SEC rules governing issuer stock repurchases. Accordingly, Red Hat's authorization to repurchase its shares will conform with normal SEC Rule 10b-18 concurrent with the termination of effectiveness of the SEC's Emergency Order at the end of the fifth business day after the reopening of trading in U.S. markets. If the SEC extends the effective period of this Emergency Order, the company's share repurchase program under the Emergency Order will be extended for the same period of time. After the expiration of the Emergency Order, Red Hat's intention is to continue with its repurchase program in the open market. The timing and amount of shares, if any, actually repurchased during the authorized period will be determined in management's discretion and will depend on market conditions.
"We strongly believe it is the right thing to do, both to support our country and its financial markets, and to show the tremendous confidence we have in the future of Red Hat," commented Matthew Szulik, president and CEO of Red Hat. "We continue to believe that our stock price does not reflect our long-term value and that this stock repurchase program is in the best interests of our shareholders."
Any purchases under Red Hat's stock repurchase program may be made, from time to time, in the open market, through block trades or otherwise. Depending on market conditions and other factors, these purchases may be commenced or suspended at any time or from time to time without prior notice. As of September 17, 2001, Red Hat has approximately 170 million shares outstanding
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Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.