Network Equipment Technologies Reports Recent Repurchases of Convertible Securities
24 Novembre 2008 - 11:51PM
Marketwired
Telecommunications equipment maker Network Equipment Technologies,
Inc. (NYSE: NWK) today reported that since the end of its second
fiscal quarter the company has repurchased $32.7 million of its
convertible securities. As a result of the purchase prices being
below the face value of the notes, the company will recognize gain
of approximately $14.5 million from these transactions. Following
these repurchases, the company now has outstanding $23.5 million of
3 3/4% convertible senior notes and $23.7 million of 7 1/4%
convertible subordinated debentures.
"Given the current financial market environment, we were able to
retire a portion of our outstanding debt on what we believe to be
favorable terms," said John F. McGrath, Jr., Vice President and
CFO. "These repurchases will reduce our future interest obligations
and will also eliminate the potential dilution to our stockholders
that could have occurred if the repurchased notes were to have been
converted into common stock."
McGrath continued, "Depending on market conditions we may make
further repurchases at appropriate and permissible times. We are
cognizant, however, of the value of strong cash balances in these
difficult times and will carefully weigh these competing
considerations. Investors should be aware that while we felt it was
appropriate in this instance to disclose information about the
recent repurchases given the principal amount of the notes
repurchased, we do not intend to provide regular updates on our
repurchasing activity."
About Network Equipment Technologies, Inc.
For a quarter of a century, Network Equipment Technologies, Inc.
has provided voice and data communications equipment for
multi-service networks requiring high degrees of versatility,
interoperability, security and performance. NET's broad family of
products are purpose-built for mixed-service, multi-protocol
networks; bandwidth-sensitive site communications; high
performance, security-sensitive transmissions; and converged
communications. The company's NX Series for network exchange
solutions and VX Series for voice exchange solutions enable
interoperability and integration with existing networks for
seamless migration to secure IP-based voice and data
communications. In addition, Quintum, a subsidiary of NET, delivers
VoIP access solutions that bring the reliability and voice clarity
of public telephone networks to Internet telephony.
Visit www.net.com for more information.
Forward Looking Statements
This press release contains forward-looking statements (within
the meaning of the safe harbor provisions of Section 21E of the
Securities Exchange Act of 1934) relating to possible future debt
repurchase activity and operating results. Investors are cautioned
that such statements are based on current expectations, forecasts
and assumptions that involve risks and uncertainty that may cause
actual results to differ materially from those expressed or implied
in the forward-looking statements. Network Equipment Technologies
disclaims any intention or obligation to update or revise any
forward looking statements, whether as a result of new information,
future events or otherwise.
Contact: Leigh Salvo Email Contact (510) 647-8870
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