Ciena Announces $1 Billion Share Repurchase Authorization
Ciena (NYSE: CIEN) has announced a new $1 billion share repurchase program authorized by its Board of Directors. The program will commence in fiscal year 2025 and continue through the end of fiscal year 2027. CFO James E. Moylan, Jr. stated that this decision reflects confidence in the company's business strength, cash generation, and operating results, as well as its competitive advantage with a robust balance sheet.
The repurchase may be executed through various methods, including open market, privately negotiated transactions, or structured through investment banking institutions. Ciena may also enter into Rule 10b5-1 plans to facilitate repurchases. The program's implementation is subject to factors such as liquidity, cash flow, stock price, and market conditions, and can be modified or suspended at any time. Funding will come from cash on hand or generated from operations.
Ciena (NYSE: CIEN) ha annunciato un nuovo programma di riacquisto di azioni da 1 miliardo di dollari autorizzato dal suo Consiglio di Amministrazione. Il programma inizierà nell'anno fiscale 2025 e continuerà fino alla fine dell'
Il riacquisto potrà essere eseguito attraverso vari metodi, inclusi il mercato aperto, transazioni private negoziate o strutturato tramite istituzioni bancarie d'investimento. Ciena potrebbe anche entrare in piani ai sensi della Regola 10b5-1 per facilitare i riacquisti. L'attuazione del programma è soggetta a fattori come liquidità, flusso di cassa, prezzo delle azioni e condizioni di mercato, e può essere modificata o sospesa in qualsiasi momento. Il finanziamento verrà da liquidità disponibile o generata dalle operazioni.
Ciena (NYSE: CIEN) ha anunciado un nuevo programa de recompra de acciones de 1 mil millones de dólares autorizado por su Junta Directiva. El programa comenzará en el año fiscal 2025 y continuará hasta el final del año fiscal 2027. El CFO James E. Moylan, Jr. declaró que esta decisión refleja la confianza en la fortaleza empresarial de la compañía, la generación de efectivo y los resultados operativos, así como su ventaja competitiva gracias a un sólido balance.
La recompra se puede ejecutar a través de diversos métodos, incluidos el mercado abierto, transacciones negociadas de forma privada o estructurada a través de instituciones bancarias de inversión. Ciena también podría participar en planes de la Regla 10b5-1 para facilitar las recompras. La implementación del programa está sujeta a factores como liquidez, flujo de efectivo, precio de las acciones y condiciones de mercado, y puede ser modificada o suspendida en cualquier momento. El financiamiento provendrá de efectivo disponible o generado por las operaciones.
Ciena (NYSE: CIEN)는 이사회에서 승인한 10억 달러 규모의 자사주 매입 프로그램을 발표했습니다. 이 프로그램은 2025 회계연도에 시작되어 2027 회계연도 말까지 계속될 예정입니다. CFO 제임스 E. 모일란 주니어는 이 결정이 회사의 사업 강점, 현금 생성 능력, 운영 결과에 대한 신뢰를 반영하며, 강력한 재무 상태로 인한 경쟁 우위를 나타낸다고 밝혔습니다.
매입은 공개 시장, 개인적으로 협상된 거래 또는 투자 은행 기관을 통한 구조화 등 다양한 방법으로 이루어질 수 있습니다. Ciena는 또한 자사주 매입을 용이하게 하기 위해 10b5-1 규정에 따른 계획을 수립할 수 있습니다. 프로그램의 실행은 유동성, 현금 흐름, 주가 및 시장 조건과 같은 요인에 따라 달라지며, 언제든지 수정되거나 중단될 수 있습니다. 자금은 현금 보유액 또는 운영에서 생성된 자금에서 나올 것입니다.
Ciena (NYSE: CIEN) a annoncé un nouveau programme de rachat d'actions de 1 milliard de dollars approuvé par son Conseil d'Administration. Le programme commencera durant l'exercice 2025 et se poursuivra jusqu'à la fin de l'exercice 2027. Le directeur financier James E. Moylan, Jr. a déclaré que cette décision reflète la confiance dans la solidité commerciale de l'entreprise, la génération de liquidités et les résultats opérationnels, ainsi que son avantage concurrentiel en raison d'un bilan robuste.
Le rachat peut être effectué par divers moyens, y compris sur le marché libre, des transactions privées négociées ou structuré par des institutions bancaires d'investissement. Ciena peut également entrer dans des plans selon la règle 10b5-1 pour faciliter les rachats. La mise en œuvre du programme est soumise à des facteurs tels que la liquidité, le flux de trésorerie, le prix des actions et les conditions de marché, et peut être modifiée ou suspendue à tout moment. Le financement proviendra des liquidités disponibles ou générées par les opérations.
Ciena (NYSE: CIEN) hat ein neues Aktienrückkaufprogramm im Wert von 1 Milliarde Dollar angekündigt, das von seinem Vorstand genehmigt wurde. Das Programm beginnt im Geschäftsjahr 2025 und läuft bis zum Ende des Geschäftsjahres 2027. CFO James E. Moylan, Jr. erklärte, dass diese Entscheidung das Vertrauen in die Stärke des Unternehmens, die Generierung von Bargeld und die Betriebsergebnisse widerspiegelt, sowie in den Wettbewerbsvorteil durch eine solide Bilanz.
Der Rückkauf kann durch verschiedene Methoden durchgeführt werden, darunter der offene Markt, privat ausgehandelte Transaktionen oder strukturiert durch Investmentbanken. Ciena kann auch in die Regel 10b5-1-Pläne eintreten, um Rückkäufe zu erleichtern. Die Umsetzung des Programms unterliegt Faktoren wie Liquidität, Cashflow, Aktienkurs und Marktbedingungen und kann jederzeit geändert oder ausgesetzt werden. Die Finanzierung erfolgt über vorhandenes Bargeld oder aus dem operativen Geschäft.
- Authorization of a substantial $1 billion share repurchase program
- Program demonstrates confidence in business strength and financial performance
- Reflects company's priority to return capital to shareholders
- Robust balance sheet provides competitive advantage
- Flexible repurchase methods allow for strategic implementation
- Program doesn't commence until fiscal year 2025
- Repurchase program subject to modification or suspension based on various factors
Insights
Ciena's announcement of a
Key takeaways:
- The repurchase program demonstrates strong financial health and robust cash flow expectations.
- It's a strategic move to potentially boost earnings per share and shareholder value.
- The three-year timeframe provides flexibility in execution, allowing for opportunistic buying.
- This follows the completion of their current repurchase program, showing a consistent commitment to shareholder returns.
However, investors should note that while share repurchases can be positive, they also reduce cash available for other investments or acquisitions. The program's effectiveness will depend on execution timing and share price movements.
Ciena's share repurchase announcement comes at an interesting time in the networking equipment market. The industry is poised for growth with the ongoing 5G rollout and increasing demand for high-speed data transmission. This move suggests that:
- Ciena anticipates strong market positioning and competitive advantage in the coming years.
- The company sees its stock as undervalued relative to future growth prospects.
- There's confidence in sustaining cash flows despite potential market fluctuations.
Investors should consider this in the context of broader industry trends, such as increasing network infrastructure investments and the shift towards cloud and edge computing. Ciena's willingness to commit substantial funds to share repurchases may indicate they feel well-positioned to capitalize on these trends without needing to reserve extra cash for major investments or acquisitions.
“Our new share repurchase program reflects the confidence we have in the ongoing strength of our business, cash generation, and operating results. It also highlights the competitive advantage we enjoy with our robust balance sheet,” said Ciena’s Chief Financial Officer James E. Moylan, Jr. “As we approach the completion of fiscal year 2024 and successfully wrap up our existing three-year repurchase program, this step demonstrates our continued priority to return capital to shareholders as part of our strategic and operating plans.”
Ciena may purchase shares at management’s discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination of the foregoing. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The amount and timing of repurchases are subject to a variety of factors including liquidity, cash flow, stock price, and general business and market conditions. The program may be modified, suspended, or discontinued at any time. The share repurchase program will be funded with cash on hand or cash generated from operations.
About Ciena
Ciena (NYSE: CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedIn, Twitter, the Ciena Insights blog, or visit www.ciena.com.
Note to Ciena Investors
You are encouraged to review the Investors section of our website, where we routinely post press releases, SEC filings, recent news, financial results, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that are based on our current expectations, forecasts, information, and assumptions. These statements involve inherent risks and uncertainties. Actual results or outcomes may differ materially from those stated or implied, because of risks and uncertainties, including those detailed in our most recent annual and quarterly reports filed with the SEC. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies and can be identified by words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Ciena assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241002514045/en/
Press Contact:
Jamie Moody
Ciena Corporation
+1 (214) 995-8035
pr@ciena.com
Investor Contact:
Gregg Lampf
Ciena Corporation
+1 (410) 694-5700
ir@ciena.com
Source: Ciena Corporation
FAQ
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