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