SAN JOSE, Calif., May 29, 2014 (GLOBE NEWSWIRE) -- Ubiquiti Networks, Inc. (Nasdaq:UBNT) ("Ubiquiti"), a next-generation communications technology company, today announced that its Board of Directors has authorized the company to repurchase up to $75 million shares of its common stock. We expect the share repurchase program will commence Monday, June 2, 2014.
"Given our confidence in our long-term growth prospects and technology platforms, we believe that our shares are undervalued," said Craig Foster, Chief Financial Officer. "We have been profitable every quarter since our launch, and have experienced significant revenue growth over the past six quarters. Our healthy balance sheet and expected future cash flows provide us the opportunity to enhance shareholder value through share repurchases while continuing to invest in future growth."
The company is authorized to repurchase shares of its outstanding common stock in accordance with applicable laws and guidelines, including those under Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and under a Rule 10b5-1 plan. The timing and amount of share repurchases will be determined by the company's management based upon its evaluation of market conditions and other factors. The share repurchase program does not obligate the company to acquire any particular number of shares, and may be discontinued at any time.
The share repurchase program will be funded primarily using proceeds from the company's existing credit facility.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any securities.
About Ubiquiti Networks
Ubiquiti Networks (Nasdaq:UBNT) is closing the digital divide by building network communication platforms for everyone and everywhere. With over 20 million devices deployed in over 180 countries, Ubiquiti is transforming under-networked businesses and communities. Our leading edge platforms, airMAX®, UniFi®, airFiber®, airVision®, mFi® and EdgeMAX®, combine innovative technology, disruptive price-performance and the support of a global user community to eliminate barriers to connectivity. For more information, join our community at http://www.ubnt.com.
Ubiquiti, the Ubiquiti logo, Ubiquiti Networks, airMAX, airFiber, airVision, UniFi, mFi, EdgeMAX, and World Network are registered trademarks or trademarks of Ubiquiti Networks, Inc. and/or its affiliates in the United States and other countries.
The Ubiquiti Networks, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=24865
Safe Harbor for Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact including words such as "look," "will," "anticipate," "believe," "estimate," "project," "expect," "consider," "schedule" and "plan" and statements in the future tense are forward looking statements. The statements in this press release that could be deemed forward-looking statements include statements regarding the company's intention to repurchase shares of its common stock under the share repurchase program and the financial impact of any such transactions, expected performance, future cash flow generation, growth prospects, short and long-term opportunities, and any statements or assumptions underlying any of the foregoing. There are a number of important factors that could cause actual events to differ materially from those indicated or suggested by such forward-looking statements. These include, among others, the actual market price of the company's shares during the share repurchase program, other investment opportunities, our cash flows, our future cash needs, the cost and performance of our other investments, and other factors identified in the company's filings with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date made. Ubiquiti Networks undertakes no obligation to update information contained in this press release.
You should review our SEC filings carefully, particularly the discussions under the heading "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended June 30, 2013, subsequent Quarterly Reports on Form 10-Q and other filings filed with the U.S. Securities and Exchange Commission that identify risks that could cause actual results to differ from those made in such forward-looking statements. Copies may be obtained by contacting the Ubiquiti Networks Investor Relations Department by email at IR@ubnt.com or by visiting the Investor Relations section of the Ubiquiti Networks website, http://ir.ubnt.com.