Tellabs 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.
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