NEW YORK (TheStreet) -- Red Hat (RHT), the world's largest provider of open-source Linux software solutions, announced Monday that it has nabbed Frank Calderoni as its new chief financial officer, succeeding Charlie Peters, whose planned retirement was announced in December 2014.
Calderoni, who served in the same position at Cisco Systems (CSCO), seems like a perfect fit given how closely both companies have worked to define OpenStack and bring cloud-ready solutions to enterprise and service provider customers. The goal of OpenStack is to bring to market scalable cloud solutions that are feature-rich, yet easy to implement.
While the OpenStack technology only accounts for a small portion of Red Hat's $2 billion in annual revenue, its growth potential is now greater with Calderoni on board, given his 30-plus years of experience doing deals at Cisco. This should give Red Hat even more of an advantage over rivals VMware (VMW) and Citirx (CTXS).
It would seem the market sees these benefits too. Red Hat shares, which are trading at near all-time highs, gained as much as 1.4% Monday, reaching $80.39. This more than compensated for the disappointing outlook the Raleigh, N.C.-based company issued last Thursday, which sent its stock down almost 2%.
For the current quarter, Red Hat expects to earn adjusted earnings per share of 44 cents (up 7%) on revenue of $492 million to $496 million, translating to increases of 10% to 11%. Analysts polled by Thomson Reuters forecasted 45 cents revenue of $493.2 million.