CDC Software Corporation Initiates Share Repurchase Program

September 9, 2009 | Posted by admin

Tue Sep 8, 2009 9:41am EDT

SHANGHAI & ATLANTA–(Business Wire)– CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise software applications and services, announced today that it is initiating a 10b5-1 trading plan to repurchase the ADSs in the open market, based on various prices. CDC Software`s senior management, including the CEO, already have purchased CDC Software ADSs since the company went public on Aug. 6, 2009, at an average price per share of approximately $8.333.

“We believe CDC Software shares are significantly undervalued by the investment community and offer a compelling investment opportunity,” said Peter Yip, CEO of CDC Software. “As we previously reported, for the second quarter of 2009, CDC Software reported a 311 percent improvement in operating cash flow of $15.2 million compared to the same period last year and second quarter Adjusted EBITDA margin improved to 27 percent compared to 17 percent in the same period last year. Day sales outstanding (DSO) improved to 89 days in the second quarter compared to 99 days in the first quarter and we are seeing signs of a recovery in new license sales through the company`s pipeline of opportunities. With these very competitive industry operating metrics and a healthy pipeline of opportunities, we remain confident in the long-term outlook for the company and as a result we are being proactive through our commencement of a repurchase program.”

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