Red Hat ( RHAT) was rallying again Tuesday, continuing a recovery from its recent slide as a restatement of the company's last quarterly results released Monday raised its top and bottom lines.

After rising to as high as $16.62 intraday, shares of Red Hat recently vaulted up $1.49, or 10%, to $16.39.

In a regulatory filing with the Securities and Exchange Commission Monday, Red Hat increased total revenue by $149,000 to $41.8 million, net income by $243,000 to $10.9 million, earnings per share by a penny to 6 cents, and deferred revenue by $1.3 million to $92.7 million for the quarter ending May 31.

For the year-earlier quarter, Red Hat lowered total revenue $1.1 million to $26.1 million and net income by $472,000 to $1.0 million. Net income in the May 31, 2003, quarter remained the same, at a penny a share.

The Linux open-source software maker also disclosed that at least 14 firms announced the filing or plan to file 15 class-action lawsuits against Red Hat in the wake of the restatements.

Red Hat first announced it would restate results July 13 as a result of a change in the way it recognizes revenue, sending shares spiraling downward 22.7%. At that time, the company also said it was responding to questions from the SEC. The stock's decline came on the heels of previous drops following disappointing quarterly results and the surprise resignation of the company's CFO -- all within a month's time.

Previously, Red Hat recognized revenue for subscription agreements on a monthly basis, starting on the first of the month a deal closed rather than the actual date it closed. But Red Hat said its auditor advised recognizing revenue on a daily basis, beginning on the date the contract takes effect and not earlier.

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