<font size="3">Red Hat reports a profit and a purchase</font>

update Red Hat's quarterly profit and revenue hit all-time highs, the Linux seller said Thursday, as it announced an agreement to acquire storage specialist Sistina Software for about $31 million in stock.

The Raleigh, N.C.-based company had net income of $4.1 million, or 2 cents per share, for the third quarter of fiscal 2004, which ended Nov. 30. That compared with $214,000 for the year-earlier quarter and matched an average of analyst estimates compiled by First Call.

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