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ModusLink Global Solutions' CEO Discusses Q2 2011 Results - Earnings Call Transcript

Factors that could contribute to such differences include, but are not limited to, those items noted and included in the company's SEC filings, including our annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking information that is provided by the company in this call represents the company's outlook as of today, and we do not undertake any obligation to update forward-looking statements made by us. Subsequent events and developments may cause the company's outlook to change.

During this call, we'll be referring to non-GAAP measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure and a discussion of our use of these measures can be found in our earnings release issued earlier today, a copy of which is posted in the Investor section of our website.

I'd now like to turn this call over to Joe Lawler. After our formal remarks, we'll be happy to take your questions. Joe?

Joseph Lawler

Thank you, Steve, and good afternoon. Before I turn to our second quarter earnings results, I want to start by saying that I'm pleased to announce that our board of directors has approved a one-time special cash dividend in order to directly return value to ModusLink stockholders. This is a special cash dividend of $40 million in aggregate or approximately $0.91 per share. We carefully evaluated our balance sheet, and given ModusLink's liquidity and long-term outlook, the board unanimously determined that it was appropriate to return a portion of the cash on hand to stockholders. This distribution reflects the confidence we have in ModusLink and its ability to generate cash flow on a long-term basis. ModusLink has a strong history of returning excess cash to our stockholders. Including today's special dividend, the company has returned nearly $100 million since fiscal 2008. The full details of this special dividend are available in a separate press release, which we issued earlier this afternoon.

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