Dell Board Authorizes Additional $10 Billion for Stock Repurchase; Company Has Spent $1.3 Billion for Share Buyback in Current Quarter.ROUND ROCK, Texas -- Dell (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DELL) Dell's board of directors today authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: an additional $10 billion for stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. , and raised the number of shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. for buyback by 250 million shares. Since 1996, Dell has spent more than $18 billion to repurchase 1.2 billion shares of common stock. So far in its current fiscal first-quarter 2006, Dell has spent $1.3 billion for share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. . The company previously said it would spend at least $900 million to buy back shares in the current quarter. In addition to offsetting the effect of stock-based employee compensation plans, stock repurchase has reduced weighted average shares outstanding by 20 percent during the past nine years, increasing Dell's earnings per share. "Our business is exceptionally efficient, and our cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses is consistently outstanding," said James M. Schneider, Dell's chief financial officer. "Share repurchase remains a priority use of our cash, even as we continue to internally fund the fastest, most profitable growth in our industry." Size and timing of stock purchases under the program will continue to be based on factors including price, use of stock in employee compensation and market conditions. About Dell Dell Inc. (NASDAQ:DELL) is a trusted and diversified information-technology supplier and partner, and sells a comprehensive portfolio of products and services directly to customers worldwide. Dell, recognized by Fortune magazine as America's most admired company and No. 3 globally, designs, builds and delivers innovative, tailored systems that provide customers with exceptional value. Company revenue for the past year was $49.2 billion. For more information about Dell and its products and services, visit at www.dell.com. Dell is a trademark of Dell Inc. Dell disclaims any proprietary interest in the marks and names of others. |
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