Research Triangle Park, N.C. September 6, 2001 Despite popular opinion, it looks like not all marketplaces are keeping their tails tucked this month. SciQuest Inc., a Web-based, interactive marketplace for scientific and laboratory products, announced today that its board of directors has authorized the repurchase of up to $5 million of SciQuest common stock.
Authorization has been issued for purchases to be made from time to time over the next 12 months in the open market or in privately negotiated transactions depending on market conditions. The repurchase plan does not obligate SciQuest to repurchase any specific number of shares and may be suspended at any time. SciQuest had approximately 29 million basic shares outstanding as of June 30, 2001.
"This program demonstrates our confidence in SciQuest's future prospects," said Stephen Wiehe, CEO of SciQuest. "With significant capital reserves, momentum in signing customers and a significantly reduced cash-burn rate, our management team and board of directors chose to invest a portion of our existing cash for the buy back of our stock. We strongly believe in the long-term value of SciQuest shares and feel that the current market price of our stock is undervalued. The stock buyback reflects that confidence and is a prudent action to enhance shareholder value."
"With approximately $53 million, or $1.82 per basic share, in cash and investments as of June 30, 2001, and with our stock trading at $1.00 as of September 5, 2001, we believe SciQuest shares represent an extremely attractive investment," Wiehe concluded.