Sun Microsystems Announces $3 Billion Share Repurchase Authorization
Sun Microsystems, Inc. (NASDAQ: SUNW) today announced that its Board of Directors authorized the repurchase of up to $3 billion of the company’s outstanding common shares. The repurchase plan is designed to increase shareholder value and reduce the dilutive effect of Sun’s equity compensation programs.
“The Board’s approval of the share repurchase program reflects its confidence in the continued growth of Sun’s business and an ongoing commitment to increase shareholder value,” said Mike Lehman, chief financial officer and executive vice president of Corporate Resources, Sun Microsystems. “With over $5.4 billion in cash and marketable debt securities, we have maintained a strong balance sheet and feel confident that this program will allow us to further pursue strategic opportunities for growth.”
The stock repurchase authorization does not have an expiration date and the pace of repurchase activity will depend on factors such as levels of cash generation from operations, cash requirements for acquisitions, repayment of debt, current stock price, and other factors. Sun may repurchase shares from time to time on the open market or in private transactions, including structured transactions. The stock repurchase program may be modified or discontinued at any time.
The Company’s prior share repurchase program, which was authorized in February 2001, has been terminated.
About Sun Microsystems, Inc.
A singular vision -- “The Network Is The Computer” -- guides Sun in the development of technologies that power the world’s most important markets. Sun’s philosophy of sharing innovation and building communities is at the forefront of the next wave of computing: the Participation Age. Sun can be found in more than 100 countries and on the Web at http://sun.com.
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