Symantec Corporation to Cut Few Jobs; Declares First Cash Dividend, Payable in June 2013; Provides Earnings Guidance for the Full Year 2014 and 2015 and Tax Rate Guidance for Fourth Quarter 2013
The company announced that it plans to initiate its first cash dividend, targeting a yield of approximately 2.5% based on Symantec's closing stock price of $20.86 on January 22, 2013. The first payment is expected to occur in the June 2013 quarter.
The company expects non-GAAP operating margins to increase by approximately 200 basis points in fiscal 2014. The company noted that its initial estimate for severance payments of approximately $275 million will impact cash flows in fiscal 2014.
The company expects to increase non-GAAP operating margins by another approximately 200 basis points in fiscal 2015. The company is targeting to reach 30% non-GAAP operating margins by the end of fiscal 2015.
The company expects to record a lower tax rate in the fourth quarter, driven by the catch-up effects of the recently reinstated research and development credit that got put back into place earlier this month.