VocalTec Communications (CALL) Authorizes $12M Stock Buyback; Provides Initial Q3 Guidance; Schedules Shareholders Meeting
VocalTec Communications, Ltd. (Nasdaq: CALL) announced today that its Board of Directors has authorized a stock repurchase program that enables the Company to purchase up to $12 million of its common stock through the next 12 months. Stock purchased under the program would be acquired with positive cash flow from operations and $40 million in cash and securities on hand. Stock repurchases under this program may be made through any manner, including open market transactions, accelerated share repurchase agreements, or privately negotiated transactions with third parties, and in such amounts as management deems appropriate. The timing and actual number of shares repurchased, if any, will depend on a variety of factors including price, corporate and regulatory requirements, alternative uses of capital and other market conditions. The Company believes this is the optimum use of its cash at this time, as it continues to have positive operating cash flow.
The Company has also provided its initial guidance for the second quarter of 2010. It expects second quarter revenues of approximately $30.5 million and believes net income may be over $3 million before one-time charges related to merger expenses and before any gains or losses on marketable securities.
The Board has also approved the scheduling of a shareholders meeting to include voting on Chief Executive Officer and Director, Daniel Borislow, increasing his holdings to over 25% ownership of the Company. Mr. Borislow may elect to make additional investments up to and then over 25% in the Company upon this shareholder approval.
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