Network security firm Fortinet announced on Monday that it would buy back up to $200 million of its stock as part of a share repurchase program expected to run through December 31, 2014.
The timing, number and value of shares repurchased under the program will be determined by Fortinet management at its discretion, with the company being able to repurchase shares from time to time in privately negotiated transactions or in open market transactions, the company said in a statement.
“The implementation of our first share repurchase program reflects Fortinet’s confidence in the long-term strength and strategy of the company, as well as our commitment to returning shareholder value,” said Ken Xie, Fortinet’s Founder, Chairman and CEO. “Though we remain focused on continuing to invest in our business to capitalize on our growth opportunities, at the same time, Fortinet’s financial performance and healthy cash flow generation allows us to be confident and opportunistic in repurchasing shares.”
While the Board of Directors has authorized the share repurchase program, the company is not obliged to repurchase any shares under the authorization, and the program may be suspended, discontinued or modified at any time, for any reason and without notice, the Fortinet said.