Red Hat names former Delta executive as new CEO

BEIJING, Dec. 21 (Xinhuanet) -- Linux software distributor Red Hat named former Delta Airlines Chief Operating Officer James Whitehurst as its new chief executive on Thursday as reported by media Friday.

Whitehurst replaces longtime CEO Matthew Szulik, who will remain chairman of the board. In a conference call, Szulik said he is stepping down because of serious health issues in his family.

James Whitehurst was named new CEO to lead the company into a new phase of growth. Red Hat said its net income in the quarter that ended Nov. 30 climbed to 20.3 million U.S. dollars, or 10 cents per share, compared with 14.6 million U.S. dollars, or 7 cents per share, in the year-ago period. Sales rose 28 percent to 135.4 million U.S. dollars.

While Red Hat said its subscription business in the third quarter was up, it spent 27 percent more on operating expenses, including research and development and marketing.

That's been a growing trend at Red Hat as the software provider expands into new product lines outside of its core Linux operating system brand. Larger software competitors -- including Microsoft Corp. and Oracle Corp. -- have stepped up their investment into the open source industry.

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 U.S. dollars in revenue and beyond. He was at Delta for five years, where he worked to bring the airline out of bankruptcy.

Whitehurst joined Delta in 2002. He resigned as COO at the end of August after being passed over for the top job at the airline. Prior to working at Delta, he was a vice president with Boston Consulting Group.

Szulik has overseen Red Hat's ¢w and the open-source industry's ¢w rapid growth spurt. He has served as the company's CEO since 1999.

(Agencies)