Tessera Tech to Pay $0.30 Special Dividend
May 14th 2013 10:33AM
Updated May 14th 2013 11:30AM
As part of a reconfigured capital allocation strategy devised last month, Tessera Technologies is going to pay a special distribution to its stockholders of $0.30 per share of its common stock. It will be paid May 31 to shareholders of record as of May 23.
The company said the new distribution is in line with the adjusted strategy, and that it is derived from "episodic revenue" brought in over the past four quarters, net of certain costs. The company defines episodic revenue as "revenue other than revenue payable over at least one year pursuant to a contract, and may include revenue such as non-recurring engineering fees, initial license fees, back payments resulting from audits, damages awards from courts or tribunals, and lump sum settlement payments."
The new capital allocation plan allows for special dividends to be handed out once per year. These are to be equal to 20%-30% of its "episodic gain," which according to Tessera Tech is "episodic revenue minus pro-rata litigation costs and actual audit costs, taxed at the last fiscal year's book tax rate." Tessera's most recent declared quarterly dividend was $0.10.
The article Tessera Tech to Pay $0.30 Special Dividend originally appeared on Fool.com.Fool contributor Eric Volkman has no position in Tessera Technologies. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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