Red Hat predicted it would make a profit for the first quarter that matched analysts’ estimates despite warning on a strong dollar hurting its revenue.
Red Hat shares were up five percent in after-market trading after the company’s profit beat the average analyst estimate for the eighth straight quarter.
The company also said a $500 million share buyback program will replace an existing $300 million programme.
Red Hat gets nearly half its revenue from international operations and expected to suffer from the US dollar’s strong gains. HP, Microsoft and IBM had estimated a significant impact from the dollar’s gains.
The company, whose customers include Adobe and Verizon, forecast an adjusted profit of $469 million-$474 million for the first quarter.
Red Hat also forecast a revenue of $1.99-$2.02 billion for the full year. Analysts were expecting revenues of $2.02 billion.
The company’s billings revenue was $688 million in the fourth quarter. Analysts had expected $646.2 million.