Red Hat (RHT) had impressive improvements in revenues and net income (profits) in its fourth quarter (its 3rd fiscal 2011 quarter). For details, see my Red Hat analyst call summary for the December 21st call.
Still, while Red Hat is a great company, its price-to-earnings ratio is much higher than many other good, rapidly growing technology companies. So at this price it is for momentum players and those who can wait a few years to see its profits catch up to the expectations. I don't own any Red Had stock presently, but did when it had a lower P/E ratio.
Red Hat specializes in Linux for the enterprise and related technologies.