QuadraMed Corp., a Reston, Va.-based developer of healthcare information technology systems, announced that its board of directors has approved a stock buyback program, using up to $5 million in cash, effective immediately and to run for the next four months.
According to a news release, the stock repurchase plan was deemed to be in the best interest of the company and its shareholders "in light of the current trading price of the company's common stock and the general market and economic conditions affecting the company."
QuadraMed stock closed Friday at $1.84 a share on the American Stock Exchange, its lowest closing price of the year. A high closing price for the year of $3.29 was recorded on March 13.
For the third quarter ended Sept. 30, QuadraMed reported having $10.7 million in cash and other cash equivalents on its balance sheet. It also reported a net loss for the quarter of $522,000, or 1 cent per share, on revenues of about $32.9 million. For the first three quarters, however, the company reported net income of nearly $1.7 million, or 4 cents per share, on revenue of nearly $96.5 million.