Red Hat Profit Up 12 Percent; Company Names New CEO

Open-source software provider Red Hat says its third quarter profit rose 12 percent. The company says a surge in subscriptions helped offset increased spending on marketing and research.

The Raleigh-based company said its net income in the quarter ending November 30 was more than 20 million dollars, or 10 cents per share. That compares with over 14 million dollars, or seven cents per share, in the year-ago period.

Revenue rose 28 percent to 135 million dollars.

Red Hat also announced that James Whitehurst will take over as CEO of the company at the beginning of January. He is the former chief operating officer of Delta Air Lines.

Red Hat says Matthew Szulik will continue to serve as chairman of the company's board of directors.