Vecima Announces Regular Dividend
VICTORIA – (September 24, 2014) – Vecima Networks Inc. (TSX:VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, announced today that its Board of Directors has adopted a dividend policy whereby Vecima will pay an annual dividend to its common shareholders of $0.18 per share, payable quarterly.
“The decision to declare a regular dividend at this time is the result of consistent positive financial results and the company’s strong financial position. We are pleased to be in a position to pay a dividend to our shareholders while we continue to pursue our growth strategy,” stated Sumit Kumar, President and CEO of Vecima.
With a substantial cash balance and remaining non-core assets, management and the Board of Directors intend to continue to explore opportunities to maximize shareholder value. The range of possibilities that are being considered include acquisitions, share buybacks, further special distributions and dividend increases.
The Board has approved the first quarterly dividend of $0.045 per common share, payable on October 28, 2014 to shareholders of record as at October 6, 2014. This dividend will not be designated as an “eligible dividend” for Canadian income tax purposes. Future quarterly dividends will be subject to Board approval.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima’s hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima’s solutions to deliver services to a converging worldwide broadband market, including what are commonly known as “triple play” (voice, video and data) and “quadruple play” (voice, video, data and wireless) services. Vecima’s solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as “the last mile”, by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima’s products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. More information is available at our website at www.vecima.com.
Forward Looking Statements
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes”, “may”, “plans”, “will”, “anticipates”, “intends”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements about the payment of dividends in the future and the intention of management and the Board of Directors to continue to explore opportunities to maximize shareholder value.
In connection with the forward-looking information contained in this news release, Vecima has made numerous assumptions regarding Vecima’s future financial performance, including among other things: that we are able to continue our relationships with our few key customers; we are able to deliver products associated with key contracts; we can manage our business and our growth successfully; we can meet our customers’ requirements for manufacturing capacity; we are able to develop new products and enhance our existing products; we are not required to change our pricing models to compete successfully; our third-party suppliers and contract manufacturers upon which we rely continue to meet our needs; currency fluctuations do not adversely affect us; and, we are not subject to increased competition that has an adverse effect on our business; continued growth in the converged wired solutions market. While Vecima considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Vecima’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: future quarterly dividends will be subject to board approval; management and the Board of Directors may not identify any opportunities to maximize shareholder value that have terms satisfactory to management or the Board of Directors; we derive a substantial part of our revenue from a few key customers; we may be unable to deliver products associated with key contracts; failure to manage our business or our growth successfully may adversely affect our operating results; if we cannot meet customers’ requirements for manufacturing capacity, sales may suffer; our success depends on our ability to develop new products and enhance our existing products; if we are required to change our pricing models to compete successfully, our margins and operating results may be adversely affected; our reliance on third-party suppliers and contract manufacturers reduces our control over our performance; currency fluctuations may adversely affect us; and, competition from new or existing technologies may adversely affect our business.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading “Risk Factors” in the Company’s Annual Information Form dated September 26, 2013, as well as the Company’s continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
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