SANTA ANA, Calif., May 29, 2009 (GLOBE NEWSWIRE) -- STEC, Inc. (Nasdaq:STEC), announced today that Manouch Moshayedi, Chairman and Chief Executive Officer and Mark Moshayedi, President, Chief Operating Officer, Chief Technical Officer and Secretary have adopted pre-arranged stock trading plans to sell a portion of STEC common stock held for the benefit of their children and in family trusts for which such officers serve as trustees. The plans provide for potential sales of common stock over a period of 18 months, if pre-determined price thresholds and other conditions set forth in the plans are met.
The stock trading plans were adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and the Company's policies regarding stock transactions by insiders. Sales under stock trading plans have the effect of spreading stock trades over an extended period of time and are thereby intended to reduce market impact. In addition, sales under such plans will result in an increased number of shares in the Company's public float and expected to increase liquidity. The transactions under the stock trading plans will be disclosed publicly through Form 4 and, if applicable, Form 144 filings with the Securities and Exchange Commission.
Rule 10b5-1 allows corporate officers and directors to adopt written, pre-arranged stock trading plans for the orderly sale of predetermined amounts of securities. Such plans may be adopted only when the officers and directors are not in possession of material non-public information. The rule allows individuals adopting such plans to sell shares over a specified amount of time, at specific prices in the future, even if subsequent material and non-public information becomes available to them.
About STEC, Inc. (Nasdaq:STEC)
STEC, Inc. is a leading global provider of Solid-State technologies and solutions tailored to meet the high-performance, high-reliability needs of original equipment manufacturers (OEMs). With headquarters in Santa Ana, California and locations worldwide, STEC leverages almost two decades of Solid-State knowledge and experience to deliver the industry's most comprehensive line of Solid-State Drives to the storage industry.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements concerning: the effect of sales under the stock trading plans on the market, public float and liquidity. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. Important factors which could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" in filings with the Securities and Exchange Commission made from time to time by the Company, including its Annual Report on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. The information contained in this press release is a statement of STEC's present intention, belief or expectation. STEC may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in STEC's assumptions or otherwise. STEC undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.