EL SEGUNDO, Calif., Aug. 27 /PRNewswire-FirstCall/ -- Peerless Systems Corporation (Nasdaq: PRLS), a provider of imaging and networking technologies to the digital document market, announced today that it intends to commence a public tender offer to repurchase from its stockholders up to $45 million (or approximately 13.85 million shares) of its common stock at a price of $3.25 per share in cash.
Two years ago, the Company's Board of Directors was reconstituted in order to ensure that Peerless was focused on enhancing stockholder value. At that time, Peerless' common stock was trading at approximately $1.80 per share and the then current CEO presented the Board with a proposed budget that projected an operating LOSS in fiscal year 2009 of approximately $9 million.
Since then management, with significant oversight by Timothy Brog, the Chairman of the Board, and the other directors, refocused the Company and was able to preserve, and then increase, capital, and maximize stockholder value for Peerless' stockholders.
These results were achieved through initiatives such as:
- Terminating money losing projects that would have consumed a significant amount of Peerless' cash;
- Negotiating an exit from a 10 year lease that was costing the Company approximately $1.5 million per year;
- Reducing office space from over 50,000 square feet to approximately 2,000 square feet;
- Slashing the head count from 27 to 4;
- Generating a pre-tax profit in excess of $10 million on our investment in Highbury Financial;
- Reducing accrued liabilities by restructuring licenses with third parties;
- Executing perpetual licenses with customers;
- Negotiating the early release of escrowed funds from the sale of our assets to Kyocera Mita Corporation;
- Adding a new customer for the first time in many years; and
- Eliminating unnecessary expenses and generating significant free cash flow in each of the past two years.