NEW YORK (CNN/Money) - Linux distributor Red Hat Inc. late Tuesday posted fourth-quarter revenues that surpassed Wall Street's estimates, making its shares a stock to watch for Wednesday.

Red Hat said its net income jumped to $5 million, or 3 cents per share, reversing a $273,000 loss, or breakeven on a per-share basis, in the year-earlier quarter.

Sales surged to $37 million from $25.9 million in the year-earlier period, the Raleigh, N.C.-based company said.

Analysts surveyed by Reuters Research, on average, expected earnings per share of 3 cents and revenue of $36.6 million.

Red Hat's (RHAT: Research, Estimates) shares soared nearly 12 percent to $21.70 on the INET electronic brokerage after having closed at $19.41 on the Nasdaq.

Shares of networking services firm Novell Inc. (NOVL: Research, Estimates) rose 6.7 percent to $10.90 on INET on back of the news. Its shares closed at $9.46 on the Nasdaq.

An updated first-quarter earnings forecast lifted shares of PMC-Sierra Inc. (PMCS: Research, Estimates) 2.3 percent from their $16.43 Nasdaq closing price to $16.30 on INET.

PMC-Sierra, a maker of high-speed Internet and storage semiconductors, said its revenue will be above the mid-point of a range of $77 million to $79 million or about 10 to 12 percent higher on a sequential basis.

Wall Street expected the Santa Clara, Calif.-based company to post revenue of $78.17 million in the first-quarter, according to consensus estimates obtained by Reuters Research.

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PMC-Sierra also said its March quarter book-to-bill ratio with respect to its new revenue outlook already exceeds 1.0, indicating rising orders.

Skin care drugs maker Connetics Corp. announced it intended to submit a new drug application to the Food and Drug Administration in the third-quarter for its Velac acne treatment.

The Palo Alto, Calif.-based company said that a phase III trial of the multi-part drug showed it produced better results than each of the individual parts administered alone.

Connetics (CNCT: Research, Estimates) shares rose 3.6 percent to $16.30 on INET after closing at $22.64 on the Nasdaq.

This is a light week for earnings but a few well-known companies are scheduled to release their quarterly figures later in the week. Speciality retailer Sharper Image (SHRP: Research, Estimates) is on the calendar for Thursday and satellite TV provider Echostar Communications Corp. (DISH: Research, Estimates) will report its results on Friday.  

--from staff and wire reports