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More Red Ink for Red Hat

Continuing to lose money, Linux and open source solutions provider Red Hat Inc. posted a fiscal fourth-quarter GAAP loss of $41.9 million, or 25 cents a share, compared with a net loss of $24.2 million, or 14 cents a share, a year earlier.

For its fiscal year ended Feb. 28, the Raleigh, N.C.-based company reported revenues of $78.9 million, a 2 percent decline from the prior year.

On a GAAP basis, the company reported a net loss of $139.9 million or 83 cents per share for its fiscal year, compared to a net loss of $86.7 million or 53 cents per share for the prior fiscal year.

The company has yet to make any money, but tried to put on a happy face in its earnings report, saying the fourth quarter was "characterized by continued strong performance in the Enterprise marketplace, as evidenced by the addition of 10 enterprise customers (including Dell Computer, Amazon.com and America Online) who are making large scale deployments of Red Hat's Open Source technologies."

On a pro forma basis, the company reported a fourth-quarter adjusted net income from continuing operations of $1.0 million, or 1 cent per share, excluding amortization of goodwill, stock-based compensation and restructuring charges, for the fourth quarter. That more or less met Wall Street's expectations.

"Fiscal 2002 has been a successful year for Red Hat," said Kevin Thompson, executive vice president and CFO. "It has been marked by the successful transition of the company from a retail software products company to a provider of Open Source Solutions to the large enterprise."