WATERLOO, ON, Jan. 7, 2016 /CNW/ - Sandvine, (TSX:SVC) a leading provider of intelligent network policy control solutions for fixed and mobile operators, today announced that its Board of Directors has approved the implementation of a quarterly dividend of C$0.0175 per common share (C$0.07 per common share, annualized) to its shareholders. The first quarterly dividend is payable on February 8th, to shareholders of record as of the close of business on January 20th. This is the first dividend to be paid to shareholders in Sandvine's history.
At November 30, 2015, Sandvine had cash and short term investments of approximately $145 million. Fiscal 2015 represented the company's third consecutive year of profitability and positive cash flow from operations. During that time, Sandvine has also funded share buyback programs and an acquisition.
"Sandvine's decision to initiate a quarterly dividend demonstrates confidence in our growth prospects and ability to generate free cash flow," said Dave Caputo, President and CEO of Sandvine. "This dividend program reinforces our commitment to delivering value to our shareholders, while we continue to invest in our growth strategy focused on market leading network policy control solutions for both traditional and virtualized deployment models."
The quarterly dividend of C$0.0175 per common share will be designated as an "eligible dividend" for Canadian income tax purposes pursuant to subsection 89(14) of the Income Tax Act (Canada). Future quarterly dividends, to be approved by Sandvine's Board of Directors, will be designated as an "eligible dividend" for Canadian income tax purposes unless otherwise indicated by Sandvine.
Sandvine's network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks to enable services that can increase revenue and reduce network costs. Powered by Sandvine's Policy Engine and SandScript policy language, Sandvine's networking equipment provides end-to-end policy control functions including traffic classification, and policy decision and enforcement across the data, control and business planes. Sandvine's products provide actionable business insight, the ability to deploy new subscriber services and tools to optimize traffic while enhancing subscriber Internet quality of experience.
Sandvine's network policy control solutions are deployed in more than 250 networks in over 90 countries, serving hundreds of millions of data subscribers worldwide, www.sandvine.com.
CAUTION REGARDING FORWARD LOOKING INFORMATION
Certain statements in this press release constitute "forward-looking information" within the meaning of applicable Canadian securities laws and are based on expectations, estimates and projections as of the date of this press release. Forward-looking statements include, without limitation, statements with respect to: payment of dividends in the future; pursuit of acquisitions; returns from investments in sales teams; and development of market-leading network policy control solutions. Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being incorrect. The forward-looking statements contained in this press release are based on certain assumptions, including, but not limited to the following: the overall development of the Network Policy Control market, including reliance on major customers; adoption of Virtual Series solutions; the requirement for increasingly innovative product solutions; growth strategy; the demand for the Company's products and fluctuations in future revenues; the stability of general economic and market conditions; currency exchange rates and interest rates; equity and debt markets continuing to provide the Company with access to capital; foreign exchange hedging; and that the risk factors noted below, collectively, do not have a material impact on the Company. By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Many factors could cause the actual results of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements, including, without limitation, each of the following factors: fluctuations in the Company's revenues and gross margins; the Company's dependency on a small number of key customers and key reseller partners; intense competition in markets together with rapid technological changes; growth in the market for Network Policy Control solutions; a shift in the Company's pricing practices from perpetual based software licenses to term based software licenses resulting in a loss or delay in hardware and/or software revenue and reduced profits; dependency on certain third party sub-assembly manufacturers in the Company's supply chain; fluctuations in the exchange rates between the U.S. dollar and the Canadian dollar and Indian rupee; political and economic developments of jurisdictions in which the Company operates; dependence upon effective acquisition management and integration; network disruptions or interruptions in the Company's information systems; and that the payment of dividends on the Company's common shares is subject to the discretion of its Board of Directors and is dependent on, among other matters, the Company's financial position, results of operations, available cash, cash requirements and alternative uses of cash. These risk factors are not intended to represent a complete list of the factors that could affect the Company and the reader is cautioned to consider these and other factors, uncertainties and potential events referred to in this press release and not to put undue reliance on forward-looking statements. For additional information with respect to risks and other factors which could occur, see the Company's Annual Information Form and other securities filings with the Canadian securities regulators. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.