Cytek Biosciences Announces $50 Million Stock Repurchase Program for 2025

Rhea-AI Summary

Cytek Biosciences (CTKB) has announced a new $50 million stock repurchase program for 2025, succeeding its current program expiring December 31, 2024. The new program will run from January 1 to December 31, 2025, unless modified by the Board of Directors. Repurchases will be conducted in the open market and/or through private negotiations, in compliance with SEC Rule 10b-18. The timing and amount of repurchases will depend on factors including liquidity, cash flow, and market conditions. The company maintains discretion to modify or suspend the program at any time.

Positive

• Authorization of new $50 million stock repurchase program
• Demonstrates company's confidence in financial position
• Potential to enhance shareholder value through stock price support

Negative

• Program execution depends on market conditions and company discretion
• No guarantee of full program implementation
• Cash allocation to buybacks may limit other investment opportunities

Insights

Financial Analyst

The $50 million stock buyback renewal represents approximately 6% of CTKB's market cap, signaling management's confidence in the company's financial health and their view that shares are undervalued. This strategic capital allocation decision could provide meaningful support to the stock price while maintaining flexibility through its open-market execution structure. The timing flexibility and non-binding nature of the program allows management to opportunistically repurchase shares while preserving liquidity for operational needs. Key considerations include:

• The dollar-for-dollar replacement of the expiring program suggests steady commitment to shareholder returns
• The one-year timeframe provides a balanced approach to capital deployment
• The discretionary nature protects the company's financial flexibility amid market volatility

The program's structure aligns with typical market practices for companies of similar size and maturity, though actual execution will depend on share price movements and competing capital needs throughout 2025.

Market Research Analyst

This buyback renewal comes at a strategic time for CTKB in the cell analysis solutions market. The program's size relative to daily trading volumes could provide meaningful price support while maintaining operational flexibility. A simplified explanation for retail investors: When a company buys back its own shares, it reduces the number of shares available in the market, which can increase the value of remaining shares - similar to having the same pizza cut into fewer slices, making each slice bigger. The discretionary nature of the program is particularly important given the current market dynamics in the life sciences tools sector. The company appears to be balancing shareholder returns with maintaining cash reserves for potential growth opportunities, which is important given the competitive landscape in the cell analysis market.

FREMONT, Calif., Dec. 30, 2024 (GLOBE NEWSWIRE) -- Cytek Biosciences, Inc. (Nasdaq: CTKB), a leading cell analysis solutions company, today announced that its Board of Directors has approved a stock repurchase program for up to an additional aggregate of $50 million of its common stock, subject to compliance with applicable law, to succeed the expiration of the existing $50 million repurchase program on December 31, 2024. The new repurchase program is authorized to commence on January 1, 2025 and remain in effect until December 31, 2025 unless extended or shortened by the Board of Directors.

Any repurchases under the 2025 repurchase program will be made in the open market and/or in privately negotiated transactions and may be made from time to time or in one or more larger repurchases. The program will be conducted in compliance with the Securities and Exchange Commission's Rule 10b-18 and applicable legal requirements. The amount and timing of any repurchases made under the repurchase program will depend on a variety of factors, including available liquidity, cash flow and market conditions.

The program does not obligate the Company to acquire any particular amount of common stock, and the program may be modified or suspended at any time at the Company's discretion.

About Cytek Biosciences, Inc.
Cytek Biosciences (Nasdaq: CTKB) is a leading cell analysis solutions company advancing the next generation of cell analysis tools by delivering high-resolution, high-content and high-sensitivity cell analysis utilizing its patented Full Spectrum Profiling™ (FSP™) technology. Cytek’s novel approach harnesses the power of information within the entire spectrum of a fluorescent signal to achieve a higher level of multiplexing with precision and sensitivity. Cytek’s platform includes: its core FSP instruments, the Cytek Aurora™ and Northern Lights™ systems and the Cytek Aurora CS cell sorter; the Cytek Orion™ reagent cocktail preparation system; the Enhanced Small Particle™ (ESP™) detection technology; the flow cytometer and imaging products under the Amnis^® and Guava^® brands; and reagents, software and service to provide a comprehensive and integrated suite of solutions for its customers. Cytek is headquartered in Fremont, California with offices and distribution channels across the globe. More information about the company and its products is available at www.cytekbio.com.

Cytek’s products are for research use only and not for use in diagnostic procedures (other than Cytek’s Northern Lights-CLC system and certain reagents, which are available for clinical use in China and the European Union).

Cytek, Full Spectrum Profiling, FSP, Cytek Aurora, Northern Lights, Cytek Orion, Enhanced Small Particle, ESP, Amnis and Guava are trademarks of Cytek Biosciences, Inc.

In addition to filings with the Securities and Exchange Commission (SEC), press releases, public conference calls and webcasts, Cytek uses its website (www.cytekbio.com), LinkedIn page and X (formerly Twitter) account as channels of distribution of information about its company, products, planned financial and other announcements, attendance at upcoming investor and industry conferences and other matters. Such information may be deemed material information and Cytek may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor Cytek’s website, LinkedIn page, and X account in addition to following its SEC filings, news releases, public conference calls and webcasts.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. All statements other than statements of historical facts, including statements regarding our future activity, if any, under the share repurchase program, including the timing of any such repurchases, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. These statements are based on management’s current expectations, forecasts, beliefs, assumptions and information currently available to management. These statements also deal with future events and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. You should refer to the section entitled “Risk Factors” set forth in Cytek’s Quarterly Report on Form 10-Q filed on November 7, 2024 with the SEC, and other filings Cytek makes with the SEC from time to time for a discussion of important factors that may cause actual results to differ materially from those expressed or implied by Cytek’s forward-looking statements. Although Cytek believes that the expectations reflected in the forward-looking statements are reasonable, it cannot provide any assurance that these expectations will prove to be correct nor can it guarantee that the events and circumstances reflected in the forward-looking statements will occur. The forward-looking statements in this press release are based on information available to Cytek as of the date hereof, and Cytek disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Cytek’s as of any date subsequent to the date of this press release.

Media Contact:
Stephanie Olsen
Lages & Associates
(949) 453-8080
stephanie@lages.com

Investor Contact:
Paul Goodson
Head of Investor Relations
Cytek Biosciences
pgoodson@cytekbio.com

FAQ

What is the size and duration of Cytek Biosciences' (CTKB) new stock repurchase program?

Cytek Biosciences' new stock repurchase program is authorized for up to $50 million and will run from January 1, 2025 to December 31, 2025.

How will CTKB implement its 2025 stock repurchase program?

The repurchases will be made in the open market and/or through privately negotiated transactions, in compliance with SEC Rule 10b-18.

What factors will determine CTKB's stock repurchase timing and amount?

The timing and amount of repurchases will depend on available liquidity, cash flow, and market conditions.

Is CTKB obligated to complete the full $50 million stock repurchase?

No, the program does not obligate Cytek to acquire any particular amount of common stock and can be modified or suspended at the company's discretion.

When does CTKB's current stock repurchase program expire?

Cytek's current $50 million repurchase program expires on December 31, 2024.