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Red Hat CEO begins stock-selling plan

Red Hat disclosed the plan Tuesday, saying CEO Matthew Szulik wanted to diversify his financial investments.

Matthew Szulik, chief executive of Linux seller Red Hat, has filed a plan that sets a schedule for him to sell company stock so it can be sold in the future regardless of what material information the executive knows about the company. Red Hat disclosed the plan Tuesday, saying the executive wanted to diversify his financial investments. The 10b5-1 plan, when combined with other stock sales planned for January 2006, won't exceed 27 percent of Szulik's common stock.

Company stock has been increasing in value over the last year to $28.05 on mid-day Tuesday as Red Hat reported steadily growing revenues and profits. On Dec. 21, the Raleigh, N.C.-based company reported that revenue grew 44 percent to $73.1 million for its quarter ended Nov. 30, while net income nearly doubled to $24.6 million, or 12 cents per share from $12.4 million, or 6 cents per share, the year earlier. Earlier in December, Red Hat's stock was added to the Nasdaq 100 list.