Accelr8 Reports Share Buyback Program and Anticipated Loss for the Fourth
Quarter
DENVER, July 30 /PRNewswire/ -- Accelr8 Technology Corporation ("Accelr8")
(Nasdaq: ACLY) announced today that its Board of Directors has authorized the
repurchase of up to 500,000 shares of Accelr8 common stock. Repurchases may
be made from time to time in open market transactions at then prevailing
prices. Accelr8's working capital will be the source of funds used to
repurchase any shares. Accelr8 has no obligation or commitment to repurchase
all or any portion of the shares covered by the program.
The repurchase program was approved based upon the Board's belief that the
stock is currently undervalued given the Company's earnings and its prospects
for future operations. Thomas V. Geimer, Chairman and CEO of the Company
noted that while short-term, the Company's revenues and earnings have been
disappointing, the long-term market opportunity for Year 2000 solutions and
legacy code modernization for mid-range computer systems is still potentially
large.
The Company currently has 7,969,500 shares of common stock outstanding.
As of July 29, 1998, the common stock closed at $6.00 per share.
Mr. Geimer also stated that the Company expects to report a loss for the
fourth quarter ending July 31, 1998, which is substantially below analysts
expectations. Geimer noted that revenues were also off sharply during this
period. The loss is the result of lower demand for the Company's Year 2000
tools than was anticipated, lower sales of the Company's tools by
Digital/Compaq, and the need to redesign the Company's Year 2000 tool set to
make it more user friendly.
It is anticipated that the Company's annual audit for the fiscal year
ending July 31, 1998, will be completed in October, at which time the Company
will announce its fourth quarter and year-end results. Accelr8 is traded on
NASDAQ under the symbol ACLY.
SOURCE Accelr8 Technology Corporation
Web Site: accelr8.com
Company News On Call: prnewswire.com or fax,
800-758-5804, ext. 124139
CONTACT: Thomas V. Geimer, President and CEO of Accelr8
Technology Corporation, 303-863-8088 |
