My Way Finance: "Stock-compensation expenses cut into profits for the second consecutive quarter for Red Hat Inc., but the company again exceeded analysts' expectations.
Red Hat, a leading provider of the open source Linux operating system and services, reported Thursday that its third-quarter profit sank 37 percent because of stock options expenses and tax provisions. The company's second-quarter profit dropped 34 percent on stock-compensation expenses.
But company shares surged nearly 14 percent in after-hours trading Thursday.
'Our brand and our reputation is world-recognized,' Red Hat Chairman Matthew Szulik said after markets closed. 'The continued innovation in the next quarter will allow us to compete successfully.'
For the three months that ended Nov. 30, earnings dropped to $14.6 million, or 7 cents per share, down from $24.6 million, or 12 cents a share in the same period last year.
Excluding stock options expenses and income tax provisions, profit totaled $29.6 million, or 14 cents per share.
Analysts surveyed by Thomson Financial had forecast a profit of 12 cents per share, excluding options expenses."
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