The paper deals with a redundant system with two types of spare units—a warm standby unit for instantaneous replacement at the time of failure of the active unit and a cold standby (stock) unit which can be replaced after a random amount of time. Failure time distributions of operative and standby units are exponential whereas all repair times follow arbitrary distributions. The system has been studied in detail by applying the results from the theory of semi-Markov process and mean-time-to-system-failure, steady-state availability, expected number of visits to a state, second moment of time in an up-state and expected profit of the system have been obtained.