Red Hat Inc. tapped former Delta Air Lines Inc. executive James Whitehurst to lead the company into a new phase of growth, as the open source provider said Thursday its third-quarter earnings rose 12 percent.
Company officials said Whitehurst’s experience at Delta, including his work leading the development of the online travel site Orbitz, will help him carry Red Hat to $1 billion in revenue and beyond. He was at Delta for five years, where he worked to bring the airline out of bankruptcy.
Long-standing Red Hat CEO Matthew Szulik, explaining in a conference call he needs more time to tend to “serious health issues” in his family, will continue to serve as chairman of the company’s board of directors.
Red Hat said its net income in the quarter that ended Nov. 30 climbed to $20.3 million, or 10 cents per share, compared with $14.6 million, or 7 cents per share, in the year-ago period. A surge in subscriptions in the latest quarter helped offset increased spending on marketing and research.
Revenue rose 28 percent to $135.4 million.
Analysts expected the Raleigh-based company to post earnings of 10 cents per share on revenue of $132.4 million, according to a Thomson Financial survey.
The company also raised its fiscal 2008 revenue outlook to between $521 million to $523 million, up from $510 million to $520 million.
Red Hat shares rose $1.16, or 6.2 percent, to $19.95 in after-hours trading. Before the news was released, the shares gained 53 cents, or 2.9 percent, to close at $18.79.
Szulik said the board selected Whitehurst after considering candidates from an array of industries.
“We were interviewing people with a track record of successful leadership first and foremost,” Szulik said in a conference call, noting that Whitehurst also demonstrated a strong command of the open source industry. “We’re getting a technically savvy executive who…