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Symantec Announces New Strategy for Returning Cash to Shareholders
By: Marketwired .
Jan. 23, 2013 04:00 PM
MOUNTAIN VIEW, CA -- (Marketwire) -- 01/23/13 -- Symantec Corp. (NASDAQ: SYMC) today announced an enhanced capital allocation strategy that over time is expected to return approximately 50% of free cash flow to shareholders through a combination of dividends and share repurchases while still enabling the company to invest in its future.
The company's capital allocation program includes initiation of a quarterly cash dividend, subject to declaration by the board of directors, targeting a yield of approximately 2.5% based on Symantec's closing stock price of $20.86 on January 22, 2013. The first payment is expected to occur in the June 2013 quarter. This will be the first cash dividend paid to shareholders in the company's history.
"A dividend program is a sign of the confidence we have in our just announced strategy and operational plan to accelerate organic growth," said Steve Bennett, Symantec president and chief executive officer. "It's a direct result of the tremendous growth prospects for the industry we're in and of Symantec's continued commitment to position itself as a leader at solving people's, businesses' and countries' most important needs related to protecting and managing their information."
The board of directors has also authorized a $1 billion share repurchase program commencing in the company's fiscal year 2014, which begins on March 30, 2013, in addition to the remaining $283 million in the current board authorized stock repurchase plan. Symantec will continue to buy back its shares opportunistically. Repurchases will be made in accordance with applicable securities laws in the open market or in privately negotiated transactions. Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice.
"The initiation of a dividend and the renewed share repurchase authorization underscore the board and management's confidence in the company's long-term business outlook and ability to generate significant free cash flow on a consistent basis," said Symantec's executive vice president and chief financial officer, James Beer.
Symantec has scheduled a Webcast from 4:30 p.m. ET/1:30 p.m. PT to 6:30 p.m. ET/3:30 p.m. PT today to discuss the Company's strategic direction, operational plan, capital allocation strategy and financial results. To listen to the live event and view the corresponding presentation, please go to http://www.symantec.com/invest at least 15 minutes early to register, download and install any necessary audio software. A replay of the webcast including presentation will be available within 24 hours after the event.
Symantec protects the world's information, and is a global leader in security, backup and availability solutions. Our innovative products and services protect people and information in any environment -- from the smallest mobile device, to the enterprise data centre, to cloud-based systems. Our world-renowned expertise in protecting data, identities and interactions gives our customers confidence in a connected world. More information is available at www.symantec.com or by connecting with Symantec at: go.symantec.com/socialmedia.
NOTE TO EDITORS: If you would like additional information on Symantec Corporation and its products, please visit the Symantec News Room at http://www.symantec.com/news. All prices noted are in U.S. dollars and are valid only in the United States.
Symantec and the Symantec Logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the U.S. and other countries. Other names may be trademarks of their respective owners.
FORWARD-LOOKING STATEMENTS: Any forward-looking indication of plans for products is preliminary and all future release dates are tentative and are subject to change. Any future release of the product or planned modifications to product capability, functionality, or feature are subject to ongoing evaluation by Symantec, and may or may not be implemented and should not be considered firm commitments by Symantec and should not be relied upon in making purchasing decisions.
This press release contains statements regarding our intention to commence a dividend payment and engage in share buybacks, which may be considered forward-looking within the meaning of the U.S. federal securities laws. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include those related to: general economic conditions; maintaining customer and partner relationships; the anticipated growth of certain market segments, particularly with regard to security and storage; the competitive environment in the software industry; changes to operating systems and product strategy by vendors of operating systems; fluctuations in currency exchange rates; the timing and market acceptance of new product releases and upgrades; the successful development of new offerings and integration of acquired businesses, and the degree to which these offerings and businesses gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments. Additional information concerning these and other risks factors is contained in the Risk Factors sections of our Form 10-K for the year ended March 30, 2012 and our Current Report on Form 8-K filed on June 11, 2012.
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