Red Hat Announces $300 Million Stock Repurchase Program
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 replaces the previous $300 million repurchase program,
the final $179 million of which was completed since February 28, 2013 at
an average price of $49.15 per share, inclusive of commissions, for a
total of 3.6 million shares. "Over the last 13 months we have
repurchased $300 million or 5.9 million shares of Red Hat common stock
under the current program, equivalent to 3% of our shares outstanding as
of February 28, 2013," 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 profits and cash flow. We believe that stock
repurchases demonstrate our commitment to building shareholder value as
well as confidence in achieving long-term growth."
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 28, 2013, Red Hat had cash and investments of
approximately $1.3 billion.
Red Hat had approximately 193.0 million shares of common stock
outstanding as of February 28, 2013.
About Red Hat, Inc.
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 a 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: 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.
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.
Tom McCallum, 919-754-4630
Source: Red Hat, Inc.
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