Posted by : Anonymous on Sep 07, 2004 - 06:41 AM Linux

RALEIGH, North Carolina (AP) - Red Hat Inc., the world's largest distributor of the Linux computer operating system, hired a new chief financial officer as it tries to bolster its sagging stock price and expand into new foreign markets. The software company said Thursday it hired Charles E. Peters Jr. as chief financial officer to replace Kevin Thompson, who said in June that he would resign.

Peters most recently served as CFO of Burlington Industries Inc., the North Carolina textiles manufacturer bought out of bankruptcy last year. He previously was CFO for Boston Edison Co., an electric utility, and GenRad Inc., a maker of electronic test systems.

Red Hat chief executive officer Matthew Szulik has hired top managers recently to help the company expand and invest in markets such as China and India.

Szulik said the management team ``should send a very strong message to investors and customers that the company has recruited the best and most qualified talent that we could to grow this company for the next 10 to 15 years.''

Investors have been dissatisfied with Red Hat in recent months after the sudden departure of Thompson as CFO and the company's failure to meet sales estimates in the first quarter. Shareholders were upset in July after Red Hat said it would change its accounting and restate earnings for the past three years.

Red Hat shares have fallen 56 percent from a four-year high June 1. The stock rose 23 cents to $12.78 in morning trading Wednesday on the Nasdaq Stock Market.

Analysts have said the company needed to name a skilled CFO to reverse the stock slide.