Red Hat Remains In The RedRed Hat Remains In The Red

Linux software vendor Red Hat Inc. narrowed its third-quarter net loss on a 4% decline in revenue and predicts sales will pick up next quarter, though they'll still be lower than last year's.

Red Hat (RHAT--Nasdaq) lost $15 million for its third quarter ended Nov. 30, compared with a net loss of $21.4 million a year ago. Despite strong sales of volume licenses of the Linux operating system to large companies, revenue dipped to $21.5 million, CFO Kevin Thompson says. He expects Red Hat's fourth-quarter sales to rise 3% to 5% from the previous quarter. That would still be a drop when compared with sales of $27 million during the fourth quarter a year ago. It forecasts a fourth-quarter operating loss of $2 million.