Intel Announces 25 Percent Cash Dividend Increase And Authorizes $25 Billion In Share Repurchase
SANTA CLARA, Calif., Nov. 10, 2005 Intel Corporation today announced that its board of directors has approved a 25 percent increase in the quarterly cash dividend to 10 cents per share beginning with the dividend that will be declared in the first quarter of 2006. The Intel board also authorized the repurchase of up to $25 billion in shares of common stock under the companys ongoing stock repurchase program.
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Intels investments in R&D and capital are enabling the company to post its third consecutive year of double-digit revenue growth, said Paul Otellini, Intel president and CEO. At the same time, we are returning record amounts of cash to our stockholders with one of the highest dividend yields in the technology industry and one of the largest share buyback programs of any company. Todays announcement signals our confidence in the growth, earnings and cash generating potential of our business.
The company has consistently used its free cash flow (cash flow from operations less capital expenditures) generated from its operations to return value to shareholders. This is primarily achieved through share repurchases and dividends. For the twelve months ended December 31, 2006, the company paid $35.4 million of cash dividends to shareholders. The annual dividend rate per common share was increased 15% by the Board of Directors in September 2006 and is now $0.60.
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Intuit also announced today a new stock repurchase program authorizing the purchase of up to $600 million of Intuit stock over the next three years. Intuit used all remaining funds in its last $800 million repurchase program, authorized in May 2007, quarter 2008, which ended on April 30. Since authorizing its first stock repurchase program in May 2001, Intuit has spent approximately $4.5 billion to repurchase approximately 186 million shares of its stock.
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Intel began paying a cash dividend in 1992 and has paid out approximately $5.8 billion to its stockholders over the past 52 quarters. Intel cash dividends for 2005 will total approximately $2 billion.
As of February 25, 2005, Orckit had 4, 540, 718 ordinary shares outstanding. Following the share split, the Company will have 13, 622, 154 ordinary shares outstanding. As the Company's authorized share capital is not sufficient to enable this share split in the form of a stock dividend, shareholders' approval is required to increase the Company's authorized share capital from 10, 000, 000 to 50, 000, 000. With shareholder approval, the Company will announce the record date and distribution date of the stock dividend, which is expected to occur in early April 2005.
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But sales of pet supplies, cosmetics and fragrances will increase faster than other categories at growth rates of over 30 percent, the report found. Last year, online sales rose 25 percent to $176.4 billion, with 28 percent growth in online purchases excluding travel. Total Internet sales in 2004 and 2003 reached $141.4 billion and $114.1 billion, respectively, Silverman said. "I think we're still looking for the next several years (for) growth over 20 percent per year, " he said, adding that growth closer to 30 percent was probably not sustainable.
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Since the companys stock buyback program began in 1990, Intel has repurchased approximately 2.5 billion shares for about $49 billion. For the first three quarters of this year, Intel repurchased over 300 million shares at a cost of approximately $7.5 billion, which compares to $7.5 billion in repurchases for all of 2004, the previous record for a full year. The average number of Intel common shares outstanding declined by over 10 percent from their peak during 1998 to approximately 6.1 billion as of the end of the third quarter of this year.
ScanSoft's gross margin for the quarter was a record 85 percent, an increase of six points over the comparable quarter in 2001, reflecting both continued success on productivity initiatives and a product mix shift to higher margin licensing revenue. Cash flow from operations of $4.4 million for the quarter was also a record. ScanSoft ended the third quarter of 2002 with cash balances of $14.4 million, after using $7.0 million to repurchase shares of its common stock from Lernout & Hauspie. International sales accounted for approximately 30 percent of revenue.
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As of the end of the third quarter, approximately 313 million shares of stock remained available for repurchase under previous authorizations expressed in share amounts, representing approximately $7.8 billion of stock at the current stock price level. The boards authorization to repurchase up to $25 billion in shares includes this $7.8 billion of shares available for repurchase under previous authorizations.
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Risk Factors Regarding Forward-Looking Statements
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The statements in this document that refer to plans and expectations for the fourth quarter, the current year, 2006 and the future are forward-looking statements that involve a number of risks and uncertainties. Dividend declarations, the dividend rate and the scope of the stock buyback program are at the discretion of Intels Board of Directors, and plans for future dividends and buybacks may be revised by the Board. Many factors could affect Intels financial results which could potentially impact Intels dividend and stock buyback programs, and variances from Intels current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the factors set forth below to be the important factors that could cause actual results to differ materially from Intels published expectations. A more detailed discussion of factors that could affect Intels results is contained in Intels SEC filings, including the report on Form 10-Q for the quarter ended Oct. 1, 2005.
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* Intel operates in intensely competitive industries. Intels results could be affected by the demand for and market acceptance of Intels products, manufacturing yields and the availability of sufficient inventory to meet demand, pricing pressures and actions taken by our competitors, the timing of new product introductions and the timing and execution of the manufacturing ramp. Factors that could cause demand to be different from Intels expectations include changes in customer order patterns, including order cancellations, changes in the level of inventory at customers, and changes in business and economic conditions.
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* Intels results could be impacted by unexpected economic, social and political conditions in the countries in which Intel, its customers or its suppliers operate, including security risks, possible infrastructure disruptions and fluctuations in foreign currency exchange rates.
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* Intels dividend and stock buyback programs could be affected by changes in its capital spending programs, changes in its cash flows and changes in tax laws, as well as by the level and timing of acquisition and investment activity.
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* Intels results could also be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intels SEC reports.
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Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.
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Intel is a trademark or registered trademark of Intel Corporation or its subsidiaries in the United States and other countries.
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* Other names and brands may be claimed as the property of others.
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Source: Intel
