RALEIGH, N.C.--(BUSINESS WIRE)--
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source
solutions, today announced that its Board of Directors has authorized
the repurchase of up to $300 million of Red Hat's common stock from time
to time on the open market or in privately negotiated transactions.
The new program begins April 1, 2012, replacing the current repurchase
program that will expire on March 31, 2012. To date, approximately $214
million has been used to repurchase shares under the current program.
"We have repurchased over 5.8 million shares of Red Hat common stock
under the current program, equivalent to 3% of our shares outstanding as
of February 29, 2012," stated Charlie Peters, Executive Vice President
and Chief Financial Officer of Red Hat. "Our management team and Board
of Directors have a strong conviction in our long-term growth prospects
and our ability to generate cash flow. We believe that stock repurchases
are an excellent means to return value to our shareholders."
The timing and the amount of any repurchases of common stock will be
determined by Red Hat management based on its evaluation of market
conditions and other factors. Repurchases of common stock may be made
under a Rule 10b5-1 plan, which would permit common stock to be
repurchased when Red Hat might otherwise be precluded from doing so
under insider trading laws. The repurchase program may be suspended or
discontinued at any time.
The repurchase program will be funded using Red Hat's working capital.
As of February 29, 2012, Red Hat had cash and investments of
approximately $1.3 billion.
Red Hat had approximately 192.7 million shares of common stock
outstanding as of February 29, 2012.
About Red Hat, Inc.
Red Hat, the world's leading provider of open source solutions and an
S&P 500 company, is headquartered in Raleigh, NC with more than 70
offices spanning the globe. Red Hat provides high-quality, affordable
technology with its operating system platform, Red Hat Enterprise Linux,
together with cloud, virtualization, management, storage and
service-oriented architecture (SOA) solutions, including Red Hat
Enterprise Virtualization and JBoss Enterprise Middleware. Red Hat also
offers support, training and consulting services to its customers
worldwide. Learn more: 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;
uncertainty and adverse results in litigation and related settlements;
the integration of acquisitions and the ability to market successfully
acquired technologies and products; 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.
Red Hat, Inc. Red Hat, the Shadowman logo and JBoss are registered
trademarks of Red Hat, Inc. in the U.S. and other countries. Linux
is a registered trademark of Linus Torvalds.
Red Hat, Inc.
Leigh Day, 919-754-4369
Tom McCallum, 919-754-4630
Source: Red Hat, Inc.
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