SAN JOSE, Calif., July 26, 2007 - Cisco announced that at a regularly scheduled meeting of its board of directors today, the board authorized up to $5 billion in additional repurchases of its common stock. Cisco's board had previously authorized up to $47 billion in stock repurchases. There is no fixed termination date for the repurchase program.
"Cisco's business strategy is to make investments for growth," said Dennis Powell, chief financial officer, Cisco. "The company believes that its available cash provides flexibility to make strategic investments in the business, including R&D and acquisitions, as well as repurchase shares. Today's decision to increase its share buyback program allows the company to continue to return cash to shareholders."
Since the inception of the repurchase program in September 2001 through the close of Cisco's third quarter fiscal year 2007 on April 28, 2007, the company had repurchased and retired 2.2 billion shares at an average price of $19.20 per share for an aggregate purchase price of $41.7 billion, with a remaining authorized amount of $5.3 billion.