NVIDIA to Return $1 Billion to Shareholders in Current Fiscal Year
NVIDIA today announced that it will return $1 billion this fiscal year to shareholders in the form of stock buybacks and dividend payments, including $100 million in stock being repurchased this quarter.
This will bring to $1.2 billion the total capital returned to shareholders since the company announced its quarterly dividend program in November 2012.
NVIDIA had previously disclosed the return of $200 million in capital to shareholders since November. This includes $100 million in shares repurchased in its fiscal fourth quarter ended Jan. 27, 2013 and $100 million in dividends paid in the current and previous quarters.
The return of a further $1 billion will largely be through a structured stock repurchase program, which includes the $100 million being repurchased in the current quarter. It also includes the company's quarterly dividend of $0.075 per share, which has amounted to about $50 million a quarter.
"NVIDIA's strategies are gaining traction in the market and make us confident in our ability to continue generating cash," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "We are now broadening our program of giving back cash to our shareholders and plan to return a further $1 billion by the end of this fiscal year."
Further details of the plan will be provided next month with the release of NVIDIA's financial results for the first quarter of fiscal 2014 ending April 28, 2013.
Since 1993, NVIDIA (NASDAQ: NVDA) has pioneered the art and science of visual computing. The company's technologies are transforming a world of displays into a world of interactive discovery -- for everyone from gamers to scientists, and consumers to enterprise customers. More information at http://nvidianews.nvidia.com and http://blogs.nvidia.com.
Certain statements in this press release including, but not limited to, statements as to: the company's planned return of capital to shareholders and the form of the return; the company's strategies gaining traction; and our ability to generate cash; are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners' products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission, or SEC, including its Form 10-K for the fiscal period ended January 27, 2013. Copies of reports filed with the SEC are posted on the company's website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
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