SolarWinds to Buy Back Shares After Stock Plummets

SolarWinds Inc., whose share price has plummeted in recent weeks, plans to buy up to $200 million of the company’s stock.

The Austin software maker’s board of directors has authorized a share repurchase program following a sell off by investors that resulted in a sharp decline on July 17. The company plans to buy the shares during the next 12 months although the exact timing of repurchases will depend upon market conditions and other factors, according to a Monday filing with the U.S. Securities and Exchange Commission.

“Today’s share repurchase announcement highlights the confidence we feel in the size of our market opportunity and our ability to capitalize on it through our strategic vision and disruptive business model,” CEO Kevin Thompson said in the announcement.

SolarWinds, which was founded in 1998, develops information technology management software. The company employs more than 1,400 workers, including about 400 in Austin.

For the third quarter, SolarWinds is projecting revenue of $130 million to $134 million compared with analyst estimates of $136.1 million. The company also lowered its full-year revenue range from $512 million to $527 million down to $502 million to $512 million.

For more information: http://www.bizjournals.com/austin/blog/techflash/2015/07/after-stock-plummets-solarwinds-to-buy-back-shares.html

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