Brocade expands share buyback program to $1B

Brocade is bumping its stock repurchase program by three-fold, as it continues to see strong fiscal quarterly revenue gains.

The company announced on Wednesday its board of directors authorized an increase in how much stock the firm buys back, upping the figure from $308 million to $1 billion.

In a statement, the firm said this move reflects its "confidence in its long-term business prospects and increasing cash flow." Brocade's cash position at its fiscal third quarter earnings stood at $790.1 million, up 3 percent on the previous quarter, and up 35 percent on the same quarter a year prior.  

In two years, Brocade has bought back $581 million of common stock, reducing its average diluted shares by close to 10 percent. 

In prepared remarks, Brocade chief executive Lloyd Carney said the firm will focus on "strategic areas of our business," as it seeks to achieve greater operational efficiency which will boost its long-term profits and hike its free cash flow