EMC Increases Share Buyback Program to $6 Billion, Institutes Quarterly
Webcast to Discuss EMC's Expanded Capital Allocation Strategy Scheduled Today
at 8:30 a.m. Eastern Time
HOPKINTON, Mass., May 30, 2013
HOPKINTON, Mass., May 30, 2013 /PRNewswire-FirstCall/ --EMC Corporation
(NYSE: EMC) today announced an expanded capital allocation strategy that
reflects the company's confidence in its long-term business prospects and
ability to generate consistent revenue and non-GAAP EPS growth while expanding
its commitment to return capital to shareholders.
As part of the strategy, EMC's Board of Directors has increased its
authorization to repurchase EMC common stock from $1 billion in 2013 to $6
billion over the three-year period ending December 31, 2015. Within this
authorization, EMC expects to repurchase $3.5 billion of its common stock by
the end of Q2 2014; this amount includes the $500 million EMC has spent on
buybacks in 2013 to date.
Additionally, the EMC Board has approved the initiation of a quarterly cash
dividend to EMC shareholders. The first quarterly dividend of $0.10 per share
of common stock will be paid on July 23, 2013 to shareholders of record as of
the close of business on July 1, 2013.
EMC also intends to add debt to its capital structure in the near term, while
continuing to maintain a strong investment-grade profile and a balance sheet
that provides the financial flexibility to pursue its strategic objectives.
Joe Tucci, EMC Chairman and CEO
"EMC has a long track record of creating value by aggressively investing in
the business. Looking forward, the opportunity for EMC's continued success has
never been better. Our strategy focused on Cloud Computing, Big Data and
Trusted IT has been embraced by customers and the market, and we continue to
execute extremely well. This, combined with our financial strength, enables us
to continue to invest wisely in promising opportunities and also expand
returns to shareholders."
David Goulden, EMC President and Chief Operating Officer
"Our confidence in EMC's business model and the strength of our operational
performance and free cash flow enable us to expand our capital allocation
strategy in meaningful and lasting ways. We are pleased to be able to augment
the strategic investments in our business with increased returns to
shareholders. Shareholders will benefit from what we've announced today and
share in our ongoing success through our long-term plan to return
approximately 50% of EMC (excluding VMware) free cash flow through a
combination of buybacks and dividends."
The net effect of today's announcement is not expected to have a material
impact on EMC's business outlook with regard to consolidated revenue, non-GAAP
earnings per weighted average diluted share (EPS) and free cash flow for 2013,
which remain as stated on April 24, 2013.
oA Webcast detailing today's news will be held today at 8:30 a.m. Eastern
Time at www.emc.com/ir.
oVisit EMC Pulse, EMC's product and technology news blog
oConnect with EMC via Twitter, Facebook, YouTube, and LinkedIn
EMC Corporation is a global leader in enabling businesses and service
providers to transform their operations and deliver IT as a service.
Fundamental to this transformation is cloud computing. Through innovative
products and services, EMC accelerates the journey to cloud computing, helping
IT departments to store, manage, protect and analyze their most valuable asset
— information — in a more agile, trusted and cost-efficient way. Additional
information about EMC can be found at www.EMC.com.
This release contains "forward-looking statements" as defined under the
Federal Securities Laws. Actual results could differ materially from those
projected in the forward-looking statements as a result of certain risk
factors, including but not limited to: (i) adverse changes in general economic
or market conditions; (ii) delays or reductions in information technology
spending; (iii) the relative and varying rates of product price and component
cost declines and the volume and mixture of product and services revenues;
(iv) competitive factors, including but not limited to pricing pressures and
new product introductions; (v) component and product quality and availability;
(vi) fluctuations in VMware, Inc.'s operating results and risks associated
with trading of VMware stock; (vii) the transition to new products, the
uncertainty of customer acceptance of new product offerings and rapid
technological and market change; (viii) risks associated with managing the
growth of our business, including risks associated with acquisitions and
investments and the challenges and costs of integration, restructuring and
achieving anticipated synergies; (ix) the ability to attract and retain highly
qualified employees; (x) insufficient, excess or obsolete inventory; (xi)
fluctuating currency exchange rates; (xii) threats and other disruptions to
our secure data centers or networks; (xiii) our ability to protect our
proprietary technology; (xiv) war or acts of terrorism; and (xv) other
one-time events and other important factors disclosed previously and from time
to time in EMC's filings with the U.S. Securities and Exchange Commission. EMC
disclaims any obligation to update any such forward-looking statements after
the date of this release.
EMC is a registered trademark of EMC Corporation in the United States and/or
other countries. All other trademarks used are the property of their
SOURCE EMC Corporation
Contact: Dave Farmer, email@example.com, 508-293-7206
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