China Announces $5.0 Million Stock Repurchase Program October 13, 2008Posted by Bahadir Sahin in English, Haber (News).
Tags: China Information Security Technology, Geographic Information System
China Information Security Technology, Inc., (Nasdaq: CPBY) (“China Information Security,” “CIST” or the “Company”), a leading application software developer, systems integrator and full-service Geographic Information Systems (“GIS”) solutions provider to the public security and civil-use markets in China, today announced that its Board of Directors has approved a $5.0 million stock repurchase program.
The amount, timing and extent of any repurchases will depend on market conditions, the trading price of its common shares and other factors and will be subject to restrictions relating to volume, price and timing under applicable law, including Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended. CIST expects to implement this share repurchase program over the next 12 months, in a manner consistent with market conditions and the interest of shareholders. Repurchases may be in open-market transactions or through privately negotiated transactions, and the repurchase program may be expanded by the Board of Directors in the future. The repurchases will be funded with available cash on hand. Any shares of common stock repurchased under the program will be returned to treasury.
The Company expects to meet or exceed its previous guidance for 2008 with pro forma revenues of $85 million, and pro forma net income of $27 million. The estimated pro forma net income for 2008 excludes any non-cash expenses as a result of employee stock awards in 2007 and 2008 and amortization of intangible assets associated with the recent acquisitions of ISS, Bocom Technology and GEO.
“We believe that our stock is significantly undervalued in the marketplace and represents an attractive investment for our shareholders,” said Mr. Jiang Huai Lin, CEO of China Information Security. “Our business and end markets remain strong and we maintain a solid balance sheet with approximately $20
million in cash and cash equivalents and no long-term debt as of June 30, 2008. Additionally, we continue to generate cash flow from operations. We believe that this buyback program is a prudent use of our cash and represents our commitment to shareholders.”