Stock buyback:
Sonus Networks, Inc. (SONS) Enters 2M Direct Common Buyback at $3.63/Share
May 27, 2014 12:37 PM EDT
Sonus Networks, Inc. (Nasdaq: SONS) announced that as part of the Company's previously announced stock buyback program, it has agreed to repurchase 2 million shares of the Company's common stock in a privately negotiated transaction reached with Empire Capital Management, L.L.C. ("Empire") on Friday, May 23, 2014. The shares will be repurchased at $3.63 per share, the market closing price on May 23, 2014, for a total purchase price of approximately $7.3 million. The Company will pay for the shares repurchased using cash on hand.
Prior to the transaction, as reflected in filings made by Empire with the Securities and Exchange Commission, Empire owned approximately 26.5 million shares, or approximately 10.7%, of the Company's outstanding common stock. Following the transaction, Empire will own approximately 24.5 million shares, or just below 10% of the Company's outstanding common stock.
President and Chief Executive Officer of Sonus Networks, Ray Dolan, commented, “Since announcing our stock buyback program last summer, we have substantially reduced the concentration of our two largest shareholders in an orderly manner. Following the repurchase with Empire, no single shareholder owns more than 10 percent of our total shares outstanding. Our strong financial performance, as evidenced by our improved profitability and growth in cash from operations, underscores our confidence to execute these share repurchases and is an important aspect of our strategy to maximize shareholder value.”
Prior to the transaction with Empire, there were approximately 247.7 million shares of the Company's common stock outstanding (245.7 million following the transaction with Empire). As of March 28, 2014, the Company had cash, cash equivalents and investments of $159.6 million. Following the transaction with Empire, approximately $32.5 million remains under the Company’s current stock buyback program as previously announced on July 29, 2013.
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