Red Hat planning to redeem remaining convertible debt in January

By Jennifer Lanning Drey

Portland, Ore., Dec. 22 - Red Hat, Inc. plans to redeem its remaining convertible debt on Jan. 15 for $285 million, Charlie Peters, chief financial officer of Red Hat, said Monday during the company's earnings conference call for the third quarter of fiscal 2009.

The company retired $285 million of convertible debt during the third quarter in response to unusual market conditions, according to its earnings release.

Red Hat posted operating cash flow of $59.1 million for the third quarter and ended the period with cash, cash equivalents and investments of $1.1 billion at Nov. 30.

Free cash flow for the period was $55 million, Peters said during the call.

Red Hat reported third-quarter net income of $24.3 million, compared with $20.3 million in the year-ago quarter. Total revenue increased 22% from the fiscal 2008 quarter.

"We continue to manage through a very challenging macro environment and remain focused on delivering solid results across our key financial metrics," Peters said.

Red Hat is an open-source software provider based in Raleigh, N.C.

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