NetComm plans $1.65m share buyback

Stuart Corner
Thursday, 28 May 2009 11:46

IT Industry - Strategy

NetComm - which has seen its revenues and EBITDA skyrocket on the back of sales of its 3G products - has announced plans to buy back up to 10 percent of its issued capital at a cost, based on the current share price, of $1.65m.

The company says it is focused on maximising returns to shareholders and sees the buyback  being in line with this aim because it will add value to the remaining shares on issue. The buy-back will start on about 11 June and will run for one year. It will be funded using cash flow from operations.

In February NetComm reported a quadrupling of sales for the half year to 31 December compared to the prior corresponding half and in late April  issued guidance saying it expects to report a full year EBITDA between $5.8m and $6.3m on revenue between $75m and $78m. This represents an increase in EBITDA of between $5.2m and $5.7m and an increase in revenue of between $55.6m and $58.6m. 2007/8 revenue was $19.m and EBITDA $0.6m.

On 25 May NetComm shares were trading at $0.16.Wilson HTM Investment Group will act on NetComm's behalf for the buyback.