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TriZetto Announces Share Repurchase
NEWPORT BEACH, Calif. – March 18, 2003 – The TriZetto® Group, Inc. (Nasdaq:TZIX) announced that its Board of Directors has authorized a stock repurchase program to buy back shares of its outstanding Common Stock. The stock repurchase program will be put into effect immediately.
Repurchases may be made from time to time by the Company in the open market or in block purchases in compliance with Securities and Exchange Commission guidelines. In addition, the Board of Directors has established certain parameters within which purchases of shares may be made, and a limit of $10 million on the aggregate dollar amount of the shares that may be purchased pursuant to the program.
"With approximately $80 million in cash and equivalents, TriZetto has the flexibility to repurchase shares, fund its growth strategy and maintain a strong balance sheet," said Jeffrey H. Margolis, chief executive officer. "We have confidence in our business model and our people, and believe that our stock is undervalued. Our current valuation does not reflect the consistent financial and operational improvements we have made since going public in 1999, our leading position in the healthcare payer market, the value of our contract backlog or the growth opportunities ahead. We believe that a share repurchase, at levels that cover any dilution from the company's equity compensation programs, will be a prudent investment."
About TriZetto
The TriZetto Group, Inc. offers a broad portfolio of healthcare information technology (IT) products and services that can be delivered individually or combined to create a comprehensive solution.
The company provides:
- leading proprietary and third-party software, including e-business applications;
- outsourced services, such as software hosting, transaction processing and IT department operations; and
- strategic and implementation consulting.
TriZetto is focused on three healthcare markets: payers, benefit administrators and physician groups. Its nearly 500 customers represent approximately 40 percent of the U.S. insured population. Headquartered in Newport Beach, Calif., TriZetto can be reached at (949) 719-2200 or www.trizetto.com.
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This press release contains forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements about future net revenues, profits, and financial results, the market for TriZetto's services, future service offerings, client and partner relationships, and TriZetto's operational capabilities. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors, including the effectiveness of TriZetto's implementation of its business plan, the market's acceptance of TriZetto's services, risks associated with management of growth, reliance on third parties to supply key components of TriZetto's services, attraction and retention of employees, variability of quarterly operating results, competitive factors, risks associated with acquisitions, changes in demand for third party products or solutions, which form the basis of TriZetto's service offerings, financial stability of our customers, the ability of TriZetto to meet its contractual obligations to customers, changes in government laws and regulations and risks associated with rapidly changing technology, as well as the other risks identified in TriZetto's Form 10-K and other SEC filings.
CONTACTS:
The TriZetto Group, Inc.
Anna Marie Dunlap (Investor Relations)
949-719-2236
am.dunlap@trizetto.com
The TriZetto Group, Inc.
Audrey Mautner (Media Relations)
303-495-7197
audrey.mautner@trizetto.com
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