Systems America Announces 50 Million Shares Repurchase Program and Corporate Update on Previously Announced 5 for 1 Forward Stock Split
SAN RAMON, Calif., Aug. 16, 2012 (GLOBE NEWSWIRE) -- Systems America, Inc. (Pink Sheets:SYAI) ("Systems America" or the "Company"), a premier provider of cloud computing and information technology solutions, announced today that its Board of Directors of the Company has approved a new share buyback program through open market or privately negotiated transactions depending on prevailing market conditions and other factors. As the first step of the buyback program, the Board authorized the Company to buy back up to 50 million of its common shares on a post forward split basis.
The Company previously announced a five for one (5:1) forward of its common stock to be effective at the market opening on August 20, 2012. The Company's ticker symbol of "SYAI" will remain unchanged as a result of the forward split, although a "D" will be appended ("SYAID") for approximately 20 business days to indicate to investors of the recent reorganization.
The timing and actual number of shares repurchased will depend on a variety of factors, including price, Systems America's cash balances, general business and market conditions, the dilutive effects of share-based incentive plans, alternative investment opportunities, corporate and regulatory requirements and working capital needs. The stock repurchase authorization does not require the Company to purchase any dollar amount or specific or minimum number of shares, does not have an expiration date and may be suspended or terminated at any time without prior notice. Repurchased shares will be returned to the status of authorized but un-issued shares of common stock.
This large first step of the buyback plan is designed to increase the value to the shareholders and to tighten up Systems America free trading float as all shares repurchased under the program will be held internally by Systems America. The purchases of common stock will be executed periodically as market and business conditions warrant on the open market, in negotiated or block trades, or under a 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws..
"At our current market valuation, we feel that the shares of the Company are substantially undervalued," commented Adesh Tyagi, Chairman & Chief Executive Officer of Systems America. "The repurchase program reflects the Board's optimism and confidence in the future of our company and our industry and the strong belief that, at current prices, Systems America shares represent an attractive long term investment for the Company and its shareholders. We are making excellent progress in our growth strategy after acquiring Mile5 Solutions in June 2012 and further negotiations for future acquisitions are ongoing. We expect to be able to report significant positive financial results in the coming quarters."
As of forward split effective date of August 20, 2012, Systems America is estimated to have approximately 405,911,095 shares of common stock outstanding and 61,001,320 shares of common stock as free trading float.
About Systems America
Systems America is a premier provider of diversified cloud computing and information technology solutions to commercial and government clients worldwide. We are ranked one of the fastest growing companies with multiple locations around the world. Systems America delivers superior cloud computing, information technology consulting services, and systems and integration services to hundreds of clients worldwide. Building on a core competency of efficient technology infrastructure outsourcing, the company is headquartered in San Ramon, California, United States. For additional information about Systems America, please visit http://www.systemsamerica.com.
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Forward-Looking Statements and Safe Harbor Statement:
The information provided herein may include forward-looking statements. These forward-looking statements may be identified by the use of terms and phrases such as "anticipates," "believes," "can," "could," "estimates," "expects," "forecasts," "intends," "anticipates", "may," "plans," "projects," "targets," "will," and similar expressions or variations of these terms and similar phrases. These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, without limitation, projections about our possible future results, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. Additionally, statements concerning future matters such as new business models, new products, product enhancements, new technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, regulatory and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements. Risks that may cause these forward-looking statements to be inaccurate include, among others, termination or suspension of the repurchase program, which may occur at any time, changes in the manner in which we implement the program, we may use substantially less than the full 80 million shares allocated under this repurchase program, fluctuations in the market price of our common stock. There is no certainty or assurance that any prospective events referenced as forward-looking statements will be achieved. The Company undertakes no duty to provide updates with respect to matters disclosed in this press release.
CONTACT: Press Contact: Systems America, Inc. Investor.Relations@systemsamerica.com