Sun announced that its Board of Directors has authorized the repurchase of up to $1 billion of the company’s outstanding common shares.
“The Board’s approval of the additional share repurchase program reflects its confidence in the continued growth of Sun’s business and an ongoing commitment to increase shareholder value,” said Jonathan Schwartz, CEO of Sun Microsystems. “With $3.3 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 repurchase plan announced today is in addition to the $3 billion share repurchase program announced in Sun’s fourth quarter of fiscal 2007. There is currently $36 million remaining of the $3 billion prior share repurchase program.