Sonic Foundry Inc., the Madison-based provider of video content management and webcasting solutions, announced that the company has renewed its line of credit with Silicon Valley Bank.
Further, the company announced a stock repurchase program which enables the company to purchase up to $1 million of its common stock.
The new agreement with Silicon Valley Bank maintains a maximum availability of $3 million and extends the maturity of the existing line of credit by two years to Oct. 1, 2015. It bears interest at prime rate plus .75 percent, currently 4 percent.
Under the stock repurchase plan approved by the firm’s board of directors, shares can be repurchased in the open market or privately negotiated transactions, with the amount and timing depending on a number of factors, including market conditions. The authorization to repurchase shares may be suspended or discontinued at any time.
“The board’s action is a clear sign of its confidence in Sonic Foundry’s ability to continue to grow, generate positive cash flow and provide long-term value to our shareholders,” said Gary Weis, chief executive officer of Sonic Foundry.
