PairGain Rebuy Set

PairGain Technologies Inc., the Tustin-based maker of telecommunication products, said Wednesday that it plans to buy back 7 million shares of stock, or about 10% of its shares outstanding.

Company officials said the repurchase plan was launched because the stock price has dropped nearly 79% over the past 11 months. Some analysts also believe the stock is undervalued, as there are indications that industrywide pricing wars are starting to ease.

Last week, PairGain reported that its third-quarter earnings had risen slightly, to $12 million, on revenue of $76.4 million, from $11.8 million, on revenue of $70.7 million, a year earlier.

PairGain stock hit a 52-week high of $29.25 in November but has steadily dropped, hitting a 52-week low of $6.22 Friday. On Wednesday, the company’s shares rose 6 cents, to $6.81, in Nasdaq trading.