Silicom Ltd. (NASDAQ:SILC) (TASE:SILC)
today announced that its Board of Directors has adopted a policy for distributing dividends, subject to all applicable laws. According to this policy, each year the Company will distribute a dividend of up to 50% of its annual distributable profits.
As part of the stated policy, the Company's Board of Directors reserves the right to declare additional dividend distributions, to change the rate of dividend distributions (either as a policy or on a one-time basis), to cancel a specific distribution or to cancel the policy as a whole at any time, at its sole discretion.
Commenting on the news, Shaike Orbach, Silicom’s President and CEO, said, "During the past several years, Silicom’s success, which has taken the Company to a whole new level of revenues and profits, has built our cash balance to its current strong level of over $50 million, a sum that is more than sufficient to fund our multi-layered strategy for achieving accelerated growth.
“As such, we believe the time has come to share our success more directly with our shareholders through this policy of significant annual dividend distributions. We are confident that our growth in the years to come, coupled with the substantial dividends which we plan to distribute, will create greater value for our shareholders and employees while encouraging long-term interest and investment in our Company.”
The actual distribution of a dividend will be subject to meeting the conditions required by applicable law, including the distribution tests set forth in Section 302 of the Israeli Companies Law - 1999, and to the specific decision of the Company's Board of Directors for each distribution.
Silicom Ltd. is an industry-leading provider of high-performance networking solutions designed to increase the throughput and availability of networking appliances and server-based systems.
Silicom’s large and growing base of OEM customers includes most of the market-leading players in the areas of WAN Optimization, Security and other mission-critical gateway applications. Silicom’s products include a variety of multi-port 1/10 Gigabit Ethernet server adapters, innovative internal and external BYPASS solutions and advanced Smart adapters, including SSL encryption solutions and Redirector adapters.