Bottomline issues stock buyback
Bottomline Technologies, in an attempt to put on a show of confidence in the face of near year-lows in the company’s share price, last week tentatively offered to buy back up to $10 million worth — or roughly 5 percent — of its stock.
The Portsmouth payroll software and service firm did not specify why and how the repurchase will occur. It only said that it would occur would happen “from time to time on the open market or in privately negotiated transactions” and that it could be “suspended or discontinued at any time.”
Any repurchased shares could be used in connection with Bottomline’s stock plan or other corporate purchases, such as stock options.
“The combination of current market conditions and our belief that the company’s stock is undervalued created an advantageous opportunity for us to initiate this program. We feel that the program sends an immediate and strong message to the investor community about our level of confidence in Bottomline’s business model,” said Kevin Donovan, the company’s chief financial officer.
The share price – which hovered only slightly above its 52-year low of $8.02 a share for most of June – dipped following the buyback announcement. – BOB SANDERS