said its third-quarter net income excluding charges was $1.3 million, or 1 cent a share. In the year-ago quarter, the company lost $900,000, or 1 cent a share. Analysts had been expecting the company to break even, according to Thomson Financial/First Call.
Revenue for the third quarter was $21.5 million, up 2% from second quarter results, but down at least 26% from the year-ago quarter.
The Linux operating system distributor had promised to break into profitability by year's end. Including restructuring costs, stock-based compensation, and amortization of goodwill, the company reported a loss for the quarter of $15 million, or 9 cents a share.
Shares of Red Hat were recently trading up 3.8% to $8.20 in Instinet premarket action after closing at $7.90 Tuesday.