Red Hat Announces $1 Billion 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 $1 billion of the Company’s common stock from
time to time on the open market or in privately negotiated transactions.
The new program is to replace the previous $500 million repurchase
program that will be terminated effective June 30, 2016. Approximately
$329 million was used under the previous program through June 22, 2016.
“Red Hat’s management team and Board of Directors firmly believe in our
long-term growth prospects. We are also committed to efficient capital
allocation, as we demonstrated today with a significant increase to our
stock repurchase authorization,” stated Frank Calderoni, Executive Vice
President, Operations and Chief Financial Officer of Red Hat. “We intend
to utilize our healthy balance sheet and the ability to generate
operating cash flow to fund the new repurchase program, which we believe
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.
As of May 31, 2016, the Company had cash and investments of
approximately $2.12 billion.
Red Hat had approximately 181.1 million shares of common stock
outstanding as of May 31, 2016.
About Red Hat, Inc.
Red Hat is the world's leading provider of open source software
solutions, using a community-powered approach to provide 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 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 the ability of
the Company to compete effectively; the integration of acquisitions and
the ability to market successfully acquired technologies and products;
the ability to deliver and stimulate demand for new products and
technological innovations on a timely basis; delays or reductions in
information technology spending; the effects of industry consolidation;
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; 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 Annual
Report on Form 10-K (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 and the Shadowman logo are trademarks or registered
trademarks of Red Hat, Inc. or its subsidiaries, registered in the U.S.
and other countries.Linux® is the registered trademark of Linus
Torvalds in the U.S. and other countries.
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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.