Dell Adds $10 Billion to Buyback Fund

The company may repurchase up to 250 million shares.
By TSC Staff ,

Dell's (DELL) - Get Report board authorized an additional $10 billion for stock repurchase, and raised by 250 million the number of shares authorized for buyback.

In a press release after the bell Thursday, the PC giant said it has spent $1.3 billion in its current first quarter for buybacks. 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% during the past nine years, increasing Dell's earnings per share, the company said.

"Our business is exceptionally efficient, and our cash flow from operations 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."

Dell shares closed Thursday down 29 cents to $40.

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