New Focus Announces Stock Repurchase Program
Company Authorized to Repurchase up to $45 Million of its Common Shares
Tuesday October 8, 5:51 pm ET
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 8, 2002--New Focus, Inc., (Nasdaq:NUFO - News), a leading provider of photonics technology solutions, today announced that its board of directors has authorized a stock repurchase program to be commenced on or about October 28, 2002, pursuant to which the company may purchase up to $45 million of its common stock periodically in the open market or in negotiated block transactions. Share repurchases under the program will be made in compliance with SEC regulations and other legal requirements. On October 23, 2002, prior to the commencement of the repurchase program, the company will release financial results for its third quarter ended September 29, 2002.
The company will use its cash resources to fund the stock repurchase program. At September 29, 2002, New Focus had approximately $305 million in cash and approximately 76.6 million shares of common stock outstanding.
"To enhance stockholder value on a going-forward basis, we are initiating a balanced strategy of growing our core businesses, repurchasing our common shares and pursuing accretive acquisitions to strengthen our market position and financial performance. Given our current cash position, we believe the repurchases of New Focus stock at current market levels is a prudent investment and represents an attractive opportunity to enhance long-term stockholder value," said Nic Pignati, president and chief executive officer of New Focus, Inc.
Forward-Looking Statements:
This press release contains forward-looking statements regarding the company's stock repurchase program, potential share repurchases under the repurchase program, the source of funds for share repurchases, and the company's plan to enhance to stockholder value. These statements are subject to risks and uncertainties and actual results may differ materially from any future performance suggested. The risks and uncertainties include the company's ability to effect significant share repurchases at the company's current low daily trading volume or at all. The company's financial performance continues to remain subject to specific market and general economic conditions. As such, the company's financial performance may be adversely affected and the company's strategy to enhance stockholder value may change. Other risk factors that may affect the company's financial performance are listed in the company's various reports on file with the SEC, including its fiscal year 2001 annual report on Form 10-K and its quarterly report on Form 10-Q for the second quarter of fiscal year 2002. New Focus undertakes no obligation to update or revise these forward-looking statements.
About New Focus:
New Focus develops and manufactures innovative photonics solutions for the telecommunications, semiconductor, industrial and biomedical markets. New Focus' product portfolio includes tunable lasers for test and measurement applications, advanced photonics tools and high speed opto-electronic devices. Founded in 1990, the company remains a leader in the development of advanced optical products for the commercial and research marketplaces. The company is headquartered in San Jose, California.
For more information about New Focus visit the company's Internet home page at newfocus.com, call our Investors Relations Department at 408/919-2736, or e-mail us at investor@newfocus.com.
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Contact:
New Focus
William L. Potts, Jr., 408/919-5384 (CFO)
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Source: New Focus |
