"Red Hat is the first pure-play, open source company, and one of only a select few software companies, to have achieved the billion dollar revenue milestone," said Jim Whitehurst, the company's president and CEO, in a statement. "The open source technologies which we provide are being selected by more customers every day as they re-architect the infrastructure of their data centers for greater efficiency, agility and cloud enablement."
The stock was last quoted at $55.90, up 9%, on volume of more than 650,000, according to Nasdaq.com.
The company said its board has hired Bank of America Merrill Lynch to look at ways to "maximize shareholder value, including a potential sale of the company or a strategic combination with a third party."Red Lion has formed a strategic committee comprised of three independent directors to work with B of A on the review. The stock ran as high as $9.19 in extended trades but volume was light. The company didn't put any time constraints on the evaluation period, and said it would not be disclosing any developments unless or until a final decision is made. -- Written by Michael Baron in New York.
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