Red Hat named its Chief Financial Officer

Red Hat Inc. , a Linux software distributor that in July said it would restate three years' of financial results, on Thursday named Charles Peters as chief financial officer.

Peters, a former Price Waterhouse auditor who was most recently CFO of textiles maker Burlington Industries, replaces Kevin Thompson.

Thompson resigned in June a day before Red Hat reported quarterly earnings and two days before the company said it began discussing a possible restatement with its auditor.

Thompson, whose resignation was effective on Aug. 30, remains with the company to assist in the transition.

In July, Red Hat said it would restate results for the past three fiscal years to correct the way it recognizes subscription revenue, informs ABC News.

According to the Computer World, Peters, a certified public accountant, most recently served for eight years as the CFO at Greensboro, N.C.-based Burlington Industries LLC, which sells fabrics for clothing and furniture.

In June, Thompson, who had been with the company for about four years, said he left to spend more time with his family and to "pursue other interests".

A month later, Red Hat announced that it was changing the way it books support subscription revenue, based on a recommendation from its auditors. Red Hat was notified by its auditor, PricewaterhouseCoopers, of the recommendation on June 16 -- just two days after Thompson's resignation. Red Hat said the two events were unrelated.

The accounting changes prompted Red Hat to correct and restate its audited financial statements for the fiscal years that ended Feb. 29, 2004, Feb. 28, 2003, and Feb. 28, 2002, and its unaudited financial statements for the fiscal quarter that ended May 31, 2004.

Under the new procedures, Red Hat now recognizes revenue for subscription agreements on a daily basis, rather than on the monthly basis it had been using for five years.

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Author`s name: Editorial Team