News!!! That is GOOD.
JMAR Technologies to Buy Back Its Own Shares
September 10, 1998 04:08 PM
SAN DIEGO--(BUSINESS WIRE)--Sept. 10, 1998--JMAR Technologies Inc. JMAR , a growing provider of precision microtechnology systems and products, Thursday announced that its board of directors has authorized the repurchase, from time to time, of up to $2 million of its own shares of common stock in the open market, or in negotiated transactions, when they are available at prices the company considers attractive.
The company further stated that it believed the current weakness in small-cap market valuations has created an extremely attractive buying opportunity for JMAR stock. Accordingly, it plans to promptly initiate repurchase transactions, as appropriate, to take advantage of the current low purchase prices.
Dr. John S. Martinez, JMAR's chairman and chief executive officer, said: "This share-repurchase program is one aspect of our commitment to improving shareholder value. I would also like to note that in spite of the market uncertainties caused by the current worldwide financial crisis, JMAR today is in the strongest financial position in its history, with a low-debt balance sheet, a new expanded bank line of credit at the prime rate, and operations that I believe are performing well in this difficult environment.
"For example, the company recently reported its ninth consecutive profitable quarter, its sales from continuing operations have grown at an annual compounded rate in excess of 130 percent since we went public in 1990, and net profits have grown at a compounded annual rate of more than 150 percent since we restructured in 1994.
"And that performance completely ignores the contributions we are receiving and anticipate from our high-potential development-stage programs," Martinez continued.
"Last month, we were awarded a $13 million contract by the U.S. government -- the single largest order of any kind in our history -- to build a prototype X-ray lithography source that we believe will enable the semiconductor industry to economically manufacture the smaller microcircuits necessary for future high-performance electronic products and systems.
"We further believe that this program could open the door for us to compete for new sales opportunities that could grow to more than a billion dollars per year as the market matures.
"In addition to the advances we are seeing in our X-ray lithography program, we are extremely close to commercial rollout with our new Britelight laser micromachining systems, and also anticipate being able to shortly announce a series of substantial new orders at our recently reorganized JMAR Semiconductor subsidiary," Martinez noted.
He concluded, "Yet in spite of all of these positive events and trends and the company's strong condition, JMAR's stock is currently trading at a two-year low, making the case for repurchasing our securities an overwhelming one."
JMAR Technologies develops, manufactures and markets precision measurement, process-control and laser-manufacturing systems, provides custom semiconductor products for the microelectronics industry, and is a leading developer of advanced lithography point sources for production of future higher-performance semiconductors.
Pursuant to the Private Securities Litigation Reform Act of 1995: The statements regarding JMAR's future sales or profit growth, size of potential markets, competitive position or products, projects or processes currently under development and the ability of the company to successfully introduce those products into the commercial marketplace or to apply or otherwise transfer those products, projects or processes to alternate applications are forward-looking statements based on current expectations that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including delays in shipment or cancellation of orders, failure of expected orders to materialize, concentration of sales to certain markets and customers, timing of future orders, customer reorganizations, failure of advanced technology to perform as predicted, uncertainties associated with the timing of the funding of government contracts, fluctuations in demand, delays in development, introduction and acceptance of new products, changing business and economic conditions in various geographic regions, natural events such as earthquakes, flood and fire, and the other risks detailed from time to time in the company's reports that are filed with the Securities and Exchange Commission. |
