Profit at open source software provider Red Hat reached $76.7m (£38.4m) in 2007, a rise of 28 per cent on the $59.9m (£30m) earned the previous year.

Annual revenue rose 31 per cent to $523m (£262m). Fourth quarter sales were up 27 per cent to $122m (£61.1m), while net income grew 10 per cent to $22m (£11m during the period.

"The company's performance was driven by growing demand for our open source solutions and the convincing value which we are able to demonstrate with our customers," said chief financial officer Charlie Peters.

"We are also realising returns on the increased investment which we have made over the past year in engineering, sales and marketing, combined with solid execution by our associates."