ATLANTA, Jan. 21, 2014 (GLOBE NEWSWIRE) -- Video Display Corporation (Nasdaq:VIDE), a worldwide leader in the manufacture and marketing of specialty niche market display systems for the defense, broadcast, training and simulation and commercial applications, today announced that the VDC Board of Directors has approved a $6,000,000 share repurchase program which, at current market prices, represents approximately 20 percent of the Company's outstanding shares.
The new repurchase program authorizes the purchase, from time to time, of up to 1,500,000 shares of the company's common stock on the open market and in private transactions. The timing and amount of shares repurchased will be determined by VDC's management based upon its evaluation of market conditions, the trading price of the stock, the Company's cash needs, securities law limitations and other factors. The repurchase program may be suspended or discontinued at any time.
With the consummation of the sales of two subsidiaries, the Company's cash and deposits currently total approximately $10 million, subsequent to repaying all long term debt and revolving credit lines which had restricted the Company's share repurchase programs for the past several years.
This Board action is being undertaken to immediately return capital to our shareholders from the sale of certain of the Company's subsidiaries. At the same time, management is pursuing opportunities to significantly increase the revenue and profitability, and thereby enhancing the value, of the four subsidiaries that remain as the operating units of the Company.
"The Board and management team have collaborated to formulate these strategic actions, which reflect our confidence in our underlying business as well as our commitment to enhancing shareholder value," said Ron Ordway, CEO. "We have succeeded in our initial goal of selling the Aydin Displays, Inc. and Z-Axis, Inc. subsidiaries in order to eliminate all long term and revolver debt owed to our banking sources as well as generating significant cash reserves and greatly strengthened the Company Balance Sheet. We anticipate selling one additional subsidiary within a short term period, pursuing some consolidation opportunities and identifying further efficiencies while continuing our revenue growth initiatives, all as part of a strong commitment to generating incremental increases in stockholder value."
About Video Display Corporation
Video Display Corporation designs, manufactures, markets, distributes, installs and provides a complete line of technologically advanced display products and systems for military, medical and industrial uses, with emphasis on high end training and simulation applications. We offer one of the best and most comprehensive customer support service, from basic components to turnkey systems used by government, military, space, medical, homeland security and commercial organizations worldwide.
For more information, visit the Company's web site at www.videodisplay.com
CONTACT: Ronald D. Ordway, Chairman and CEO 770-938-2080Source:Video Display Corporation