Emulex Uses Recovery Plan for Repurchase of Shares
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Emulex Corp. of Costa Mesa said it is recovering about $12 million from its Puerto Rican subsidiary, Emulex Caribe, to help finance a previously approved plan to repurchase up to 2 million shares of Emulex stock.
The recovery, called a “repatriation dividend,” will be subject to a Puerto Rican tax of about 6%. As a result, Emulex will record a one-time tax charge of about $740,000, or 5 cents per share in its fiscal 1987 fourth quarter. The company said the provision also will affect the full-year results.
Emulex manufactures data storage and communications products for IBM compatibles and other computer products. The company’s stock closed Monday in over-the-counter trading at $7.625 per share, down 12.5 cents for the day and off 87.5 cents from its close Thursday, when the announcement was made.
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