Tellabs to resume stock buyback program

Tellabs said it may purchase up to $100 million over the next year under its previously announced purchase program. Buybacks may begin as early as Monday, the company said.

At Wednesday's closing stock price of $3.55, the $100 million would account for 7.1 percent of the company's shares.

About $487.3 million remains in the company's $600 million buyback program, which was authorized by its board in November 2007, Tellabs said.

"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," Chief Executive and President Rob Pullen said in a statement.

The resumption follows a "significant curtailment" in buybacks since the second quarter of 2008, as the company reevaluated its use of cash.

Tellabs said it plans to use part of its $1.2 billion in cash, cash equivalents and marketable securities to fund the program.

Since 2005, the company has repurchased 93.2 million shares, or about 20 percent of shares outstanding, at a cost of $804 million.

In a regulatory filing, Tellabs said it had about 398 million shares outstanding on Oct. 27.

Shares of Tellabs fell 8 cents, or 2.3 percent, to $3.47 in morning trading.