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[marketmaven]

Red Hat Misses Rev Target and Forecast; 100x $0.20 EPS???

By Shawn Langlois, CBS.MarketWatch.com
Last Update: 4:15 PM ET June 17, 2004
SAN FRANCISCO (CBS.MW) -- Red Hat posted a profit that topped Wall Street targets by a penny late Thursday as subscriptions to the software company's Linux products grew. Shares fell 5 percent in late trading as revenue came up just shy of expectations. Red Hat (RHAT: news, chart, profile) said it earned $10.7 million, or 5 cents a share, on total revenue that grew by 53 percent to $41.6 million. A year ago, the Linux company posted a profit of 1 cent a share on sales of $27 million. Analysts had pegged Red Hat to deliver earnings of 4 cents a share on sales of $43 million, according to Thomson First Call. Sales of subscriptions totaled 98,000, up 13 percent from the sequential fourth quarter. Red Hat saw weakness in its shares earlier this week after its chief financial officer, Kevin Thompson, said he plans to resign to spend more time with his family. See full story.