Earthlink authorizes additional share repurchase
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The Earthlink (NASDAQ:ELNK) board of directors announced on February 24th that it had authorized an additional $25 million for use in repurchasing its common stock, bringing the total authorization to $50 million. The original $25 million authorization was in August 2002.
According to the company’s announcement, 4.1 million shares have already been repurchased under the authorization for a cost of $22.6 million.
Over the past year, Earthlink shares have been hit for significant losses, dropping from over $11 a share in March 2002 to its current trading price of about $4.75 (on 25-Feb-2003).
Additionally, Earthlink’s shares have recently been hurt by speculation that its broadband costs will be increasing due to an FCC ruling that affects Covad, Earthlink’s broadband partner. (According to the linked story, Covad provides 15 to 20 percent of ELNK’s broadband and 30 percent of ELNK’s DSL business.)
However, Michael Gallentine, Earthlink’s vice president of investor relations, is quoted as saying EarthLink is still on track to meet its numbers this year.