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May 05, 2011

Plantronics to Repurchase 7,000,000 Shares of Outstanding Common Stock

By Rahul Arora, TMCnet Contributor

The Board of Directors of Plantronics (News - Alert), Inc., a global leader in audio communications for businesses and consumers, has authorized the repurchase of up to 7,000,000 shares of Plantronics’ outstanding common stock. The repurchase authorization is expected to be the largest in Plantronics’ history.

“Our philosophy has been to return to our stockholders cash in excess of our operating needs, and stock repurchase programs are an excellent means of executing on this philosophy,” stated Ken Kannappan (News - Alert), president and CEO of  Plantronics, in a statement. “Our management team and Board of Directors have a strong conviction in our growth prospects, business model and cash flow generation capability, and believe that the stock represents an attractive value relative to our future outlook. We are thus substantially increasing our commitment to repurchase our stock.”

With the authorization of its Board of Directors, Plantronics now will be able to repurchase shares of its common stock as per the market conditions, in open market or privately negotiated transactions including accelerated stock repurchase programs.

The company has already repurchased approximately 3.3 million shares of its common stock in the open market through four separate repurchase programs, returning over $100 million to the stockholders. In the past three fiscal years, Plantronics have repurchased approximately 6.3 million shares, returning $173 million to our stockholders.

“We expect to enter into a revolving line of credit on attractive terms to augment our financial flexibility as we execute this significant stock repurchase program,” stated Barbara Scherer (News - Alert), Senior Vice President and Chief Financial Officer of Plantronics, in a statement.

With its audio communications solutions, the company has served various companies in the Fortune 100, as well as 911 dispatch, air traffic control and the New York Stock Exchange.

Recently, the company announced that the Savor M1100 Bluetooth Earpiece has been selected as a finalist in the telecommunications category for TechAmerica Foundation’s American Technology (News - Alert) Awards, “The Termans,” which bestows the only national “Best Of” awards that recognize all technology products and services across the technology industry.

Rahul Arora is a TMCnet contributor. He has worked as an editor and freelance writer for several reputed organizations in India. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

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