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Red Hat 3Q loss 5 cents
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December 20, 1999: 2:35 p.m. ET
But shares soar on news of 2-for-1 stock split , possible secondary offering
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NEW YORK (CNNfn) - Red Hat, the open source software and Linux operating system provider, reported a third-quarter loss of 5 cents a share Monday as well as a 2-for-1 stock split and the possibility of a secondary stock offering.
The prospect of more stock being made available sent Red Hat (RHAT) up almost 5 percent, rising 11-3/4 to 264-5/8 in early afternoon trade.
The Research Triangle Park, N.C.-based technology company posted a net loss of $3.6 million, or 5 cents per share, for its fiscal third quarter, ended Nov. 30, compared with a profit of $103,937, or less than 1 cent a share, a year ago. Analysts polled by First Call had expected the company to report a net loss of 4 cents per share in the latest quarter.
Revenue for the quarter rose 24 percent to $5.4 million.
For the nine months, Red Hat had a net loss of $8.8 million, or 21 cents per share, compared with a profit of $100,000, or 1 cent per share, a year ago, when fewer shares were outstanding. Revenue rose 77 percent to $12.6 million.
The company’s board declared a 2-for-1 stock split in the form of a stock dividend payable around Jan. 7 to shareholders of record Dec. 27.
In addition, Red Hat (RHAT) said Monday it is contemplating filing a registration statement with the Securities and Exchange Commission for a secondary offering of its common stock. The registration may be filed as early as the week of Jan. 3, with the timing and size of the offering dependent on market conditions. 
-- from staff and wire reports
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