FOR IMMEDIATE RELEASE
Nov. 13, 2008
Tellabs intends to resume common stock repurchases
Naperville, Ill. — Tellabs intends to resume its common stock repurchases under an existing Board of Directors authorization, previously announced on Nov. 8, 2007. Over the next four quarters, the company may repurchase up to $100 million (about 7.1% of shares at Wednesday’s closing price) under the previously announced repurchase program. The resumption follows Tellabs’ significant curtailment of stock repurchases since the second quarter of 2008, as the company re-evaluated uses of cash.
Approximately $487.3 million remains under a $600 million repurchase program authorized by the board 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 Nov. 17.
"In light of Tellabs new strategy, our positive cash flow and our emphasis on organic growth, it's the right time to resume limited stock repurchases,” said Rob Pullen, Tellabs chief executive officer and president.
Tellabs plans to use part of its $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).
Tellabs Investor Conference — Tellabs is hosting an investor conference on Thursday, Nov. 13, 2008, from 9:30 a.m. until 2:30 p.m. Central Standard Time. The event will combine presentations with Q&A sessions.
Interested investors can access a live video and audio webcast of the presentation at www.tellabs.com. An on-demand replay of the webcast will be available starting 24 hours after the presentation and will be archived for 30 days.
Tellabs advances telecommunications networks to meet the evolving needs of users. Solutions from Tellabs enable service providers to deliver high-quality voice, video and data services over wireline and wireless networks around the world. Tellabs (Nasdaq: TLAB) is part of the NASDAQ Global Select Market, Ocean Tomo 300™ 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, including but not limited to the guidance information contained in this release 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 and disruptions in credit and capital markets, including specific impacts of these conditions on the telecommunications industry. 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. For a more detailed description of the risk factors, please refer to the company’s SEC filings.
MEDIA CONTACT:
George Stenitzer
+1.630.798.3800
INVESTOR CONTACT:
Tom Scottino
+1.630.798.3602
Tellabs® and the Tellabs logo are trademarks of Tellabs or its affiliates in the United States and/or other countries. Any other company or product names mentioned herein may be trademarks of their respective companies.
