LONDON - Gorilla Technology Group Inc. (NASDAQ: GRRR), a global provider of AI-driven technology solutions, has announced an increase in its share buyback program from $6 million to $10 million amid recent stock fluctuations. The announcement comes as the stock has experienced a 41% decline over the past week, despite showing strong momentum with a nearly 300% gain over the previous six months, according to InvestingPro data. This move is part of the company's strategy to address shareholder concerns and assert the strength of its financial position and growth potential. Analysis from InvestingPro suggests the stock is currently trading below its Fair Value, supporting management's view on valuation.
CEO Jay Chandan conveyed the company's commitment to delivering sustainable growth and creating long-term shareholder value. He addressed the market volatility, stating that the enhanced buyback program reflects the belief that Gorilla's shares are undervalued compared to its intrinsic value. The company's strong financial metrics support this view, with a P/E ratio of 3.2 and impressive revenue growth of 425% in the last twelve months.
The company has already utilized $3.8 million of the previously announced allocation for share repurchases in privately negotiated transactions. Management and board members have expressed their intention to purchase shares, pending the lift of securities law restrictions related to non-public material information.
Chandan also clarified misconceptions about the company's reliance on a single contract and its cash flow conversion. He emphasized the diversity of Gorilla's project pipeline and the recent completion of preferred share conversions and warrant exercises, which raised the company's cash position without additional dilution.
Gorilla has refuted claims of overdependence on a singular client, highlighting its expansion into multiple contracts across various sectors and regions. The company also addressed an article questioning its cash flow conversion, stating it was based on incomplete information and did not reflect the cash inflow from its MENA project.
The company enters 2025 with a $93 million backlog and a pipeline exceeding $2 billion, indicating a strong position for sustained revenue growth. Gorilla has also highlighted its strategic milestones, including partnerships for AI-powered smart city projects and contract wins in Taiwan. The company maintains a healthy financial position with a current ratio of 1.72, demonstrating strong liquidity to support its growth initiatives. For deeper insights into Gorilla's growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
In response to shareholder inquiries, Chandan provided updates on the $430 million Southeast Asia contract negotiations and the progress of U.S. contracts, with the recent opening of a Seattle office to strengthen Gorilla's presence in the American market.
Gorilla Technology Group Inc., headquartered in London, specializes in Security Intelligence, Network Intelligence, Business Intelligence, and IoT technology, catering to government, manufacturing, telecom, retail, and other industries.
This report is based on a press release statement and has not been independently verified.
In other recent news, Gorilla Technology Group Inc. has seen significant developments. The company has reported impressive growth with revenues reaching $64.7 million, a 189% increase year-over-year, and a net profit of $19.9 million. In a strategic move, Gorilla Technology has added Thomas Sennhauser, a seasoned executive from Intel Corporation (NASDAQ:INTC), to its Board of Directors. Sennhauser brings with him over two decades of experience in technology leadership, R&D, and digital transformation.
The company has also completed its share buyback program, repurchasing over 1.1 million shares, and has announced the appointment of Bruce Bower as Interim Chief Financial Officer. Additionally, former Bank of America executive Keith Levy has joined the Board of Directors. On the project front, Gorilla Technology has secured two significant contracts in Taiwan and is collaborating with SINTRONES Technology Corp to enhance autonomous driving and fleet management systems. These are the recent developments for Gorilla Technology.
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