Tellabs Shares Spring Upward on $1 Special Dividend News

Andrew Klips |

Tellabs Shares Spring Upward on $1 Special Dividend NewsTellabs Inc. (TLAB) is seeing shares track higher in early trading after advancing in after-hours trading on Thursday.  The company, whose shares closed the regular session on Thursday at $2.95 each, announced a special dividend of $1.00 per share to shareholders of record at the close of business on December 14.  The dividend is payable on December 21.

The phone-equipment maker also said that it is continuing with its previously announced share repurchase program under which Tellabs may repurchase up to $224.6 million-worth of shares.  At current prices, that would account for about 22 percent of the current shares outstanding.

The Naperville, Illinois-based company is using a portion of its $942 million in cash on hand for the buy-back program.

Separately, Tellabs also named interim Chief Executive Officer Daniel Kelly to the position permanently.  Kelly, 51, whom also serves as president at Tellabs, had been holding both positions since June 27.  Working at Tellabs for more than 25 years, he previously was the company’s executive vice president of global products.  Kelly holds a Master of Business Administration from the University of Chicago as well as Bachelor and Master of Science degrees in electrical engineering from the University of Notre Dame.

Tellabs is looking to stabilize its outfit after plummeting to near 20-year lows two weeks ago, hitting $2.70 per share.  In addition to challenges facing that has led to slumping earnings the last two years and a shift from legacy phone network switches to those focused on wireless networks, Tellabs has its fair share of unfortunate executive concerns.  Earlier this year, former CEO Rob Pullen passed-away from cancer and Chairman Mike Birch stepped-down from the board after being diagnosed with leukemia.

Shares are of TLAB are lower in 2012 by about 16 percent even with today’s 11 percent upward leap to $3.30 in early trading.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
OCLR Oclaro Inc. 8.77 -0.35 -3.84 7,326,875

Comments

Emerging Growth

H-Source Holdings Ltd.

H-Source Holdings Inc. is a technology company operating within the healthcare industry through its subsidiary, H-Source, Inc. The Company has developed a transaction platform that provides a private, secure and…

Private Markets

Snapchat

Snapchat is the fastest way to share a moment with friends. The mobile app, allows users to not only share photos with friends but also control how long they can…

Cloudera

Cloudera offers enterprises a new data platform built on the Apache Hadoop open-source software package. Hadoop is a data-management platform that can consolidate data in a single repository for comprehensive…