Shares in the Germantown, Md.-based maker of network security products surged 3.81 to 7.38, or 107 percent, in midday trading. Earlier in the day the shares reached 8.13.
In a statement, V-one said that its SmartGate software will be compatible with version 6.0 of Red Hat's Linux. V-one's software provides authentication and encryption technology and is used by companies that have set up networks that are accessed by customers and employees.
Red Hat distributes and services its own version of Linux, a freely available operating system that competes with Microsoft products and is growing in popularity.
Red Hat in particular is reaping the benefits from that popularity. Its stock has surged since its initial public offering and was trading at 216.13 in midday trading. That's down about 20 points from yesterday, but still far and above its IPO price of 14.
V-one sold 3 million shares to the public in 1996 for $5. For much of this year the shares hovered between 2 and 4.
In 1998, the company posted annual sales of $6.26 million and a net loss of $9.19 million.
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