Red Hat Announces $1 Billion Stock Repurchase Program
June 22 2016 - 4:16PM
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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version on businesswire.com: http://www.businesswire.com/news/home/20160622006285/en/
Red Hat, Inc.Media Contact:Stephanie Wonderlick,
571-421-8169swonderl@redhat.comorInvestor Relations:Tom McCallum,
919-754-4630tmccallum@redhat.com
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