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 $500 million of the Company'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
that is scheduled to expire on March 31, 2015. Approximately $220
million was used under the previous plan through March 25, 2015.
"Over the past four fiscal years, we have repurchased over $1 billion or
approximately 19.5 million shares of Red Hat common stock," stated
Charlie Peters, Executive Vice President and Chief Financial Officer of
Red Hat. "Given our strong conviction about our long-term growth
prospects, a healthy balance sheet and the ability to generate operating
cash flow, the Red Hat management team and Board of Directors believe
that a new repurchase program will create further value for 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 also be
made under a Rule 10b5-1 plan, which would permit common stock 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 common stock will be available
for use in connection with the Company's stock plans and for other
corporate purposes.
The repurchase program will be funded using the Company's operating cash
flow. As of February 28, 2015, the Company had cash and investments of
approximately $1.81 billion.
Red Hat had approximately 183.5 million shares of common stock
outstanding as of February 28, 2015.
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 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.
Forward Looking Statements
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, Red Hat Enterprise Linux, the Shadowman logo and JBoss are
trademarks of Red Hat, Inc., registered in the U.S. and other countries.
Linux is the registered trademark of Linus Torvalds in the U.S. and
other countries.
Red Hat, Inc.
Media Contact:
Stephanie Wonderlick,
571-421-8169
swonderl@redhat.com
or
Investor
Relations:
Tom McCallum, 919-754-4630
tmccallum@redhat.com
Source: Red Hat Inc.
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