Illumina, Inc. (NASDAQ:ILMN) today announced that its Board of Directors has approved a new stock repurchase program, authorizing the Company to repurchase in the aggregate up to $75 million of its outstanding common stock. The Company has terminated the $120 million repurchase program announced on October 24, 2008 after repurchasing an aggregate of $70.7 million of its outstanding common stock in 2008.
"Given the continued strength of our cash flow, we believe that this program is an effective mechanism to return value to our shareholders," said Jay Flatley, Illumina's President and Chief Executive Officer.
Under the program authorized by its Board of Directors, any shares repurchased will be done so under a 10b5-1 trading program. The purchases will be funded from existing cash balances.
A trading program under Rule 10b5-1 allows a company to purchase its shares at times when it otherwise might be prevented from doing so under insider trading laws or self-imposed trading blackout periods. A broker selected by Illumina will have the authority under the terms and limitations specified in the plan to repurchase shares on the Company's behalf in accordance with the terms of the plan.
The 10b5-1 share repurchase period will commence on August 25, 2009. The aggregate amount of shares purchased pursuant to the plan will not exceed $75 million (excluding commissions, taxes and other charges and expenses). There is no guarantee as to the exact number of shares that will be repurchased under the stock repurchase program and the Company may terminate the plan at any time.
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