Courtesy of Benzinga.
Harris Interactive Inc. (NASDAQ: HPOL) today announced that its Board of Directors has authorized a share repurchase program of up to $3 million of the Company’s common stock over the next twenty-four months. The program calls for the repurchases to be made at management’s discretion in the open market or through privately negotiated transactions from time to time in compliance with applicable laws, rules, and regulations, subject to cash requirements for other purposes, and other relevant factors, such as trading price, trading volume, general market and business conditions, Company performance, and the Company’s compliance with the covenants under its credit agreement.
The share repurchase authorization does not obligate the Company to acquire any specific number of shares in any period, and may be modified, suspended, or discontinued at any time at the discretion of the Company’s Board of Directors. Share repurchases will be funded using cash generated from operations, and repurchased shares will be retired and returned to unissued status.
Commenting on the share repurchase program announcement, Al Angrisani, President and Chief Executive Officer of Harris Interactive, said, “Although we still have a lot of work to do to successfully execute the turnaround program, I am pleased with the progress we have made to date. The share repurchase program allows the Company flexibility to repurchase shares at its discretion while maintaining sufficient liquidity, and reflects our commitment to returning value to our stockholders.”
Eric Narowski, Interim Chief Financal Officer of Harris Interactive, further commented, “Based on current market conditions and forecasts, the Company projects Adjusted EBITDA after the effect of restructuring and other charges to be between $9.5 and $11.5 million for the fiscal year ending June 30, 2012. At the mid-range of this guidance, fiscal 2012 Adjusted EBITDA after the effect of restructuring and other charges is projected to increase approximately 54% compared with fiscal 2011. Relative to our projected fiscal 2012 performance, we believe that our stock is currently undervalued and view the repurchase program as an efficient way to enhance stockholder value.”
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