Symantec Announces New Strategy for Returning Cash to Shareholders
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
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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
"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
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 preside
nt 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
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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