This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
SAN JOSE, Calif., Aug. 9, 2012 (GLOBE NEWSWIRE) -- Ubiquiti Networks, Inc., (Nasdaq:UBNT), a next-generation communications technology company, today announced that its Board of Directors has authorized the company to repurchase up to $100 million of company common stock. We expect the share repurchase program will commence Monday, August 13, 2012.
Robert J. Pera, Founder and Chief Executive Officer stated: "Given our long-term growth prospects and confidence in our new technology platforms, we believe our stock price is undervalued. Because we have been profitable every quarter since our launch and continue to consistently generate positive cash from operations, we believe we are in a unique position to repurchase our stock. We also believe this repurchase program will enhance long-term shareholder value."
The company is authorized to repurchase shares of its outstanding common stock in the open market or in privately negotiated transactions. The company intends to make all repurchases in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and amount of stock repurchases will depend on a variety of factors, including corporate and regulatory considerations. The share repurchase program may be suspended, modified or discontinued at any time at the company's discretion without prior notice.
The share repurchase program will be funded from existing cash on hand and from the proceeds related to amended term loan and revolving credit line agreements. Under the amended agreements the Company will increase its term loan borrowing from $35 million to $50 million. In addition the revolving line of credit will increase from $5 million to $50 million.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any securities.
About Ubiquiti Networks