As of July 31, 2013, our material short-term cash requirements primarily consist
of cash necessary to fund: (i) our ongoing working capital needs, including
income tax payments, (ii) anticipated quarterly dividends, and (iii) repurchases
of our common stock that we may make pursuant to our stock repurchase program.
Our material short-term cash requirements also include the possible use of cash
to repay $200.0 million of our 3.0% convertible senior notes, as the holders of
our 3.0% convertible senior notes may require us to repurchase some or all of
the outstanding notes on May 1, 2014. In addition, we may also redeploy a
portion of our cash and cash equivalents for one or more acquisitions.
During fiscal 2013, we repurchased 1,044,442 shares of our common stock in
open-market transactions with an average price per share of $25.81 and at an
aggregate cost of $27.0 million (including transaction costs). As of July 31,
2013, we were authorized to repurchase up to an additional $34.3 million of our
common stock, pursuant to our current $50.0 million stock repurchase program
that was authorized by our Board of Directors in December 2012. The $50.0
million stock repurchase program has no time restrictions and repurchases may be
made in open-market or privately negotiated transactions and may be made
pursuant to SEC Rule 10b5-1 trading plans. As of October 2, 2013, $34.3 million
remains available for repurchases of our common stock.
In February 2013, we completed a $250.0 million stock repurchase program that
was previously authorized by our Board of Directors. In fiscal 2012, we
purchased 7,055,614 shares with an average price per share of $30.81, at an
aggregate cost of $217.4 million (including transaction costs).
During fiscal 2013, our Board of Directors declared quarterly dividends
aggregating $18.6 million of which $14.1 million was paid during fiscal 2013,
with the remainder paid on August 20, 2013. On October 3, 2013, our Board of
Directors declared our ninth consecutive quarterly dividend of $0.275 per common
share payable on November 19, 2013 to shareholders of record at the close of
business on October 18, 2013. Future dividends are subject to Board approval.
Our material long-term cash requirements primarily consist of payments relating
to our operating leases. In addition, we expect to make future cash payments of
approximately $4.5 million related to our 2009 Radyne-related restructuring
We have historically met both our short-term and long-term cash requirements
with funds provided by a combination of cash and cash equivalent balances, cash
generated from operating activities and cash generated from financing
Our secured revolving credit facility allows us to borrow up to $100.0 million
and provides an option to extend the agreement beyond April 30, 2014
In light of ongoing tight credit market conditions and overall adverse business
conditions, we continue to receive requests from our customers for higher credit
limits and longer payment terms. Because of our strong cash position and the
nominal amount of interest we are earning on our cash and cash equivalents, we
have, on a limited basis, approved certain customer requests. We continue to
monitor our accounts receivable credit portfolio and have not had any material
negative customer credit experiences to date.