Local Corp (LOCM)

[B7$4]

"LOCM News" Local.com® Corporation Announces Stock Repurchase Program

http://www.pr-inside.com/local-com-corporation-announces-stock-r2043147.htm

© Business Wire 2010
2010-08-05 13:45:03 -

Local.com : Corporation (NASDAQ: LOCM), a leading local search site and network, today announced that its board of directors has authorized a stock repurchase program of up to $2 million of its outstanding common stock.

“We believe that the recent speculation surrounding the company is without merit and fails to reflect our fundamental operational and financial performance over the past six quarters. This stock repurchase program demonstrates the board of directors’ confidence in the company's ability to execute its growth strategy. We are projecting compound annual revenue growth of nearly 60% for 2010, on the back of nearly 50% growth in 2009. We continue to execute well in this fast growing market and are making the strategic decisions we believe will allow us to solidify our position as a leader in this sector,” said Heath Clarke, Local.com chairman and chief executive officer.

“Last week we reported second quarter revenue and adjusted net income that met and exceeded our updated guidance from early June. Yesterday we reaffirmed our third quarter guidance of $23 to $23.5 million in revenue with adjusted net income of $3.5 to $3.6 million, or $0.20 to $0.21 per diluted share. It is important to note that our third quarter guidance includes a $0.02 per share cost as a result of our OCTANE360 acquisition and also includes the cost of significant investments we are making to secure the long-term future of our company.”

As of June 30, 2010, the company had $15 million in cash, and approximately 16.6 million shares of common stock outstanding. The share repurchase program authorizes Local.com to repurchase shares from time to time through the open market, or privately negotiated transactions.

The company may adopt a Rule 10b5-1 repurchase plan which would allow the company to purchase its shares at times when it ordinarily would not be in the market because of self-imposed trading blackout periods. The number of shares to be purchased and the timing of the purchases will be based on market conditions, share price and other factors. The stock repurchase program does not require the company to repurchase any specific dollar value or number of shares and may be modified, extended or terminated by the board of directors at any time.