The board of directors of Ellie Mae (ELLI) has authorized a program to repurchase up to $75 million of the company’s common stock. Under the program, purchases may be made from “time to time” on the open market over the next 36 months, and will be funded from the company’s available working capital.
The company said that the number of shares to be purchased and the timing of purchases will be based on the price of the company’s common stock, general business and market conditions and other investment considerations.
The company also said that the buyback program does not obligate the company to repurchase any specific number of shares and the program may be suspended or discontinued at any time without prior notice.
The company currently has over 28 million diluted shares outstanding and closed Tuesday’s trading at $27.75.
The company’s first-quarter revenue was $32.2 million, which was up compared to 2013’s first quarter revenue of $30.9 million.
“Despite the recent forecasts of further declines in mortgage origination volume this year, we are maintaining our revenue guidance for the full year,” Sig Anderman, CEO of Ellie Mae, said when the company released its first-quarter earnings.
“However, following the outage we experienced on March 31, we incurred forensic and consulting fees, and have decided to accelerate our investments to bolster our infrastructure and enhance our system capacity, reliability and security,” Anderman continued. “With the additional expenses anticipated in the second quarter and for the remainder of the year, we are lowering our GAAP and non-GAAP earnings guidance for the year.”
The outage Anderman is referring to was originally thought to be a “distributed denial of service attack” that left some wondering if the company was the victim of a cyber attack.
As it turns out, the company determined the cause of the outage to the company’s loan origination software, Encompass360, was due to a “confluence of factors involving network, hardware, software and demand for service.”