|RE CTG dividend suspended. No surprises there. However stock buyback to take advantage of low stock price.|
CTG Announces $10 Million Share Repurchase Authorization BUFFALO, N.Y., November 17, 2016 – CTG (NASDAQ: CTG), an information technology (IT) services and solutions company, today announced that its Board of Directors has authorized the Company to repurchase up to $10 million of its outstanding shares over the next two years. The authorization replaces and expands the Company’s capacity to repurchase shares under its preexisting buyback program. Concurrent with the authorization of the share repurchase program, CTG’s Board of Directors also approved a suspension of the Company’s cash dividend.
Chairman of CTG’s Board of Directors, Daniel J. Sullivan, commented, “The Board and executive management recently conducted a comprehensive review of the Company’s capital allocation priorities, and subsequently elected to authorize a share repurchase program to take advantage of current market conditions. More specifically, we believe the opportunistic repurchase of CTG shares at the current valuation is a very effective use of the Company’s capital resources. Today’s announcement demonstrates both the Board’s and management’s commitment to maximizing shareholder value, while simultaneously focusing on the execution of our strategic business plans to drive future growth.”
CTG’s share repurchase program authorizes the Company to repurchase its common stock from time to time in compliance with applicable securities laws. Neither the program nor the authorization requires the Company to repurchase any shares, and the timing of any such transactions as well as the number of shares will be decided at management’s discretion based on market conditions and other factors. The Company’s share repurchase program does not have an expiration date, and it will remain in place until terminated by CTG’s Board of Directors.
CTG provides industry-specific IT services and solutions that address the business needs and challenges of clients in high-growth industries in North America and Western Europe. CTG also provides strategic staffing services for major technology companies and large corporations. Backed by 50 years of experience and proprietary methodologies, CTG has a proven track record of reliably delivering high-value, industry-specific staffing services and solutions to its clients. CTG has operations in North America, Western Europe, and India. The Company regularly posts news and other important information online at www.ctg.com.