Evolving Systems, Inc., a provider of software solutions and services to the wireless, wireline, and Internet protocol (IP) carrier markets, has announced that its Board of Directors has approved a share repurchasing program for up to $5.0 million in aggregate of the Company’s common stock.
Beginning May 20, 2011 and continuing through December 31, 2011, the Company expects to make purchases from time to time at prevailing market prices either through privately negotiated transactions or in the open market. The size and the timing for these purchases, if any, will be based upon business and market conditions, as well as other factors. The Company is not required to purchase any shares. Purchases under the program can be discontinued at any given time the Company comes to determine that additional purchases are not justified.
“This program underscores the confidence management and the Board have in the Company’s long-term growth prospects as well as our ongoing commitment to enhance shareholder value,” said Thad Dupper, Chairman and CEO. “We believe that the current market value of our shares does not accurately reflect the underlying value of the Company and the repurchase program represents an attractive opportunity to deploy capital in a way that will benefit stockholders.” Dupper also stated that the Company will be financing the purchases with preexisting cash on the balance sheet and funds from operations; not from earnings from the pending sale of the Company’s Numbering assets.
The company also recently announced its financial results for the first quarter of 2011, which ended on March 31, 2011. The Company reported a net income of $0.9 million during the first quarter, or $0.09 per basic and $0.08 per diluted share, compared with the net income of $1.2 million, or $0.12 per basic and $0.11 per diluted share for the same quarter last year in 2010.
Operating income in the first quarter was $0.6 million, down from $1.5 million in the corresponding quarter of 2010. It was the Company’s 19th consecutive quarter of positive operating income.
Revenue for the first quarter fell to $8.6 million from $9.7 million in the first quarter a year prior, mainly due to lower bookings in 2010 and longer sales cycles in relation to the global economic slowdown and tighter capital budgets. License fees and services revenue fell to $4.1 million from $5.6 million, partially offset by the increase in customer support revenue to $4.5 million from $4.1 million. Revenue by product group includes $5.5 million in Activation and $3.1 million in Numbering Solutions.
“As anticipated, license and services orders rebounded in the first quarter, showing 35% growth year-over-year and 42% sequential growth over the fourth quarter of 2010,” said Thad Dupper, chairman and CEO of Evolving Systems. “We are building momentum across our entire product portfolio. DSA license and services bookings in the first quarter increased 20% year-over-year and 139% sequentially. In addition, we added a new Dynamic SIM Allocation™ (DSA) customer in the first quarter and now have nine DSA customers worldwide. License and services bookings of our Tertio™ Service Activation (TSA) solution in the first quarter were up 51% year-over-year. Also in the first quarter, we strengthened our Activation solutions portfolio with the introduction of our Intelligent M2M Controller™ (IMC), giving us an excellent foundation for growth going forward.”
For more information on the Company and its products, visit their company website: http://www.evolving.com
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