"This action reflects our confidence in Compaq's long-term growth and is designed to assist in offsetting dilution from the issuance of stock under the company's equity incentive plans," said Compaq chairman Ben Rosen.
As of March 31, Compaq had about 1.5 billion shares outstanding.
Last week, Compaq said that its profits for the quarter ended March 31 fell more than 95 percent and that it will "take another quarter of adjustment to the company's core business on a track of improved profitability."
Compaq stock was up .38 in today's trading, closing at 28.88. It has traded as high as 39.78 and as low as 14.65 during the past 52 weeks.
Last month, for example, Intel announced an increase in its stock repurchase program of 100 million additional shares, raising the number of shares available for buyback to 129.8 million.