Brocade Increases Authorized Share Repurchase Program to $1 Billion

Brocade Communications Systems, Inc. is announcing an expanded capital allocation strategy that reflects the company’s confidence in its long-term business prospects and increasing cash flow.

As part of this strategy, Brocade is announcing that its board of directors has increased the authorization to repurchase its common stock from $308 million to $1 billion.

“As Brocade focuses our investments in strategic areas of our business and as we achieve greater operational efficiency, we expect improved profitability and higher levels of free cash flow as a result,” said Lloyd Carney, Brocade CEO. “Brocade remains committed to driving shareholder value and I am confident that the Board’s increased authorization to the repurchase program will help meet that goal.”

Since the beginning of fiscal Q3 2011, Brocade has repurchased $581 million of common stock, reducing the average diluted shares outstanding by nearly 10%. The timing and amount of repurchase transactions under the program will depend on market conditions, corporate business and financial considerations, and regulatory limitations.