Cabletron Board Authorizes $400 Million Stock Buyback Program.Business/Technology Editors ROCHESTER, N.H.--(BUSINESS WIRE)--April 24, 2000 Cabletron Systems, Inc. (NYSE NYSE See: New York Stock Exchange :CS) today announced that its Board of Directors has authorized the repurchase of up to $400 million of Cabletron's outstanding shares of common stock. The company will repurchase the shares in the open market, through block or privately negotiated transactions or otherwise. The timing and amount of any repurchase will be at the discretion of the company's management. Cabletron has previously announced that it plans to fundamentally transform its business through the formation of four independent operating companies. These companies will focus on the key growth areas of the communications marketplace - service provider, enterprise e-business, network consulting services, and infrastructure management. "Implementation of our transformation strategy is proceeding rapidly and our customers have reacted positively. Consequently, we believe that the recent events in the stock market have created a compelling opportunity for us to purchase back Cabletron stock," said Cabletron CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Chairman Piyush Patel. "Over the past year, we have achieved significant results in our business that have created a strong balance sheet through working capital management. We will use this strong balance sheet to recognize shareholder value through a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program and by funding the growth of our four businesses. Our decision to institute a stock repurchase program reflects our high level of confidence in the future of Cabletron's new companies, Riverstone, Enterasys, GNTS GNTS Global Network Technology Services , and Aprisma, and are belief that our stock price is significantly undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. at these levels." About Cabletron Systems Cabletron Systems is a holding company for infrastructure companies focused on the new Internet See Web 2.0 and Internet2. economy. Aprisma Management Technologies Aprisma Management Technologies was created after Cabletron Systems was broken up into 5 smaller pieces, as the business unit to continue the highly successful SPECTRUM network management suite. It was acquired in early 2005 by Concord, which in turn was acquired by Computer Associates. is a leading provider of intuitive multi-vendor management solutions that meet the service level requirements of enterprise and service provider customers. Aprisma pioneered the field of intelligent network management with its flagship SPECTRUM(R) software suite. Enterasys Networks This article or section contains information about scheduled or expected future events. It may contain tentative information; the content may change as the event approaches and more information becomes available. is a network solutions provider singularly focused on enterprise-class customers. By optimizing enterprise network solutions for e-business applications, and by providing global 24x7 service and support, Enterasys provides a competitive advantage to its customers. Riverstone Networks is focused on emerging content and infrastructure service provider markets. Starting from the customer premise, across the metro network, into the hosting center and WAN backbones, Riverstone networking equipment e-nables an end-to-end service-rich infrastructure. GlobalNetwork Technology Services (GNTS) is one of the largest independent network-consulting firms in the world. With consultants in more than 66 locations spanning the globe, GNTS provides solutions that optimize application availability and performance to enterprise and service provider clients. Listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. as CS, Cabletron is an S&P 500 index company. Cabletron's web site can be reached on the Internet at http://www.cabletron.com |
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