Tellabs Intends to Repurchase Up to $200 Million in Common Shares
11 August 2009 - 8:00AM
PR Newswire (US)
NAPERVILLE, Ill., Aug. 10 /PRNewswire-FirstCall/ -- Tellabs intends
to actively repurchase its common stock under an existing Board of
Directors authorization, previously announced on Nov. 8, 2007. Over
the next four quarters, the company may repurchase up to $200
million (about 8.6% of shares at the Aug. 10, 2009, closing price)
under the previously announced repurchase program. The resumption
follows Tellabs' significant curtailment of stock repurchases since
the fourth quarter of 2008, as the company evaluated uses of cash.
"In light of Tellabs' success with growth products and positive
cash flow, now is the right time to resume stock repurchases," said
Rob Pullen, Tellabs chief executive officer and president.
Separately, Tellabs Chairman Michael J. Birck announced his
intention to enter into a 10b5-1 plan to sell up to 3 million
shares of Tellabs stock on the open market. Birck beneficially owns
about 34.9 million shares. "I will use the proceeds from this sale
to repay debts related to a family partnership," Birck said. "I
continue to have full confidence in Tellabs, and in no way does
this reflect any concern over the company's future prospects."
Approximately $480 million currently remains under a $600 million
repurchase program authorized by the Board of Directors in November
2007. The repurchase program will involve the purchase of common
shares from time to time at the prevailing market price, starting
as early as Aug. 13. Tellabs plans to use part of its more than
$1.2 billion in cash, cash equivalents and marketable securities
for the program. The company has no debt. Tellabs gives no
assurance as to the amount of repurchases to be made or the actual
purchase prices. Since 2005, Tellabs has repurchased 93.2 million
shares at a cost of $804 million (about 20% of shares outstanding).
About Tellabs -- Tellabs helps customers succeed through
innovation. That's why 41 of the top 50 global telecom service
providers choose our mobile backhaul, optical networking and
business services solutions. We help telecom service providers,
independent operating companies, MSO/cable TV companies,
enterprises and government agencies get ahead by adding revenue,
reducing expenses and optimizing networks. With wireless and
wireline networks in more than 90 countries, we enrich people's
lives by innovating the way the world connects(TM). Tellabs
(NASDAQ:TLAB) is part of the NASDAQ Global Select Market, Ocean
Tomo 300(TM) Patent Index, the S&P 500 and several corporate
responsibility indexes including FTSE4Good and eight KLD indexes.
http://www.tellabs.com/ Forward-Looking Statements -- This news
release contains forward-looking statements that involve risks and
uncertainties. Actual results may differ from the results discussed
in the forward-looking statements. Factors that might cause such a
difference include, but are not limited to, risks associated with:
the competitive landscape, including pricing and margin pressures,
the response of customers and competitors, industry consolidation,
the introduction of new products, the entrance into new markets,
the ability to secure necessary resources, the ability to realize
anticipated savings under our cost-reduction initiatives, and
overall negative economic conditions generally and disruptions in
credit and capital markets, including specific impacts of these
conditions on the telecommunications industry. In light of these
factors investors are advised not to rely on forward-looking
statements in deciding whether to buy, sell or hold the company's
securities. The company undertakes no obligation to revise or
update these forward-looking statements to reflect events or
circumstances after today or to reflect the occurrence of
unanticipated events. Tellabs and Tellabs logo are registered U.S.
trademarks of Tellabs Operations, Inc. in the United States and/or
in other countries. DATASOURCE: Tellabs CONTACT: Media, George
Stenitzer, +1-630-798-3800, , or Investors, Tom Scottino,
+1-630-798-3602, , both of Tellabs Web Site:
http://www.tellabs.com/
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