NEW YORK, May 15 /PRNewswire-FirstCall/ -- FiberNet Telecom Group, Inc. (NASDAQ:FTGX), a leading provider of complex interconnection services, today announced that its Board of Directors has authorized the increase of the Company's stock repurchase program to $7.5 million from $5.0 million. Under this program, the Company may repurchase its common stock, either through open market purchases or in private transactions.
The timing and amount of the shares to be repurchased will be based on market conditions, the business environment, corporate and regulatory requirements, and other factors, including the availability of capital resources and alternative investment opportunities. The Company will finance the repurchase program with cash flow from operations and a term loan facility under the Company's existing credit agreement.
Jon A. DeLuca, President and CEO, stated, "Our strong financial performance and balance sheet have enabled us to increase this program. Together with our recently announced national network expansion, we believe that we have a balanced capital allocation program to increase shareholder value over the long term." To date, the Company has repurchased 341,000 shares of common stock for a total consideration of $2.7 million, and the Company has not borrowed any funds from the term loan facility intended for the stock repurchase.
The repurchase program, which was previously scheduled to terminate on December 31, 2008, has been extended through June 30, 2009, and it may be modified or discontinued at any time and without notice. Purchases may be made pursuant to a program adopted under Rule 10b5-1 of the Securities Exchange Act. The Company is not obligated to purchase any shares or any specific number or amount of shares.
About FiberNet Telecom Group, Inc.
FiberNet Telecom Group, Inc. owns and operates integrated colocation facilities and diverse transport routes in the two gateway markets of New York/New Jersey and Los Angeles, designed to provide comprehensive broadband interconnectivity enabling the exchange of traffic over multiple networks. FiberNet's customized connectivity infrastructure provides an advanced, high bandwidth, fiber-optic solution to support the demand for network capacity and to facilitate the interconnection of multiple carriers' and customers' networks. For additional information about FiberNet, visit the company's website at http://www.ftgx.com/ .
Various remarks that we may make about FiberNet's future expectations, plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Such remarks are valid only as of today, and we disclaim any obligation to update this information. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in FiberNet's most recent Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission. DATASOURCE: FiberNet Telecom Group, Inc.
CONTACT: Norma I. Salcido of FiberNet Telecom Group, Inc., +1-212-405-6210, Web site: http://www.ftgx.com/
|