HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced that the Company’s Board of Directors has approved a special cash dividend of $1.00 per share payable on September 5, 2012 to shareholders of record at the close of business on August 22, 2012.
“As previously reported, our business has recognized steady improvements, with a return to profitability in fiscal 2012. We have successfully completed our exit from the home appliance business, which has provided significant relief to the Company’s working capital requirements and presented us with the opportunity to return capital to our shareholders while still maintaining ample resources to support foreseeable growth. We believe that this special dividend is an appropriate way to reward shareholders for their continued support,” said John C.K. Sham, the Company’s President and Chief Executive Officer.
Mr. Sham continued, “We are excited about the future growth potential of our CCM and EMS business segments and expect significant increases in sales in both segments in fiscal 2013. Our exit from the home appliance business was a major stride forward in our transition to a high-technology focused company.”
Mr. Sham concluded, “As we continually assess our current capital structure and how to best deploy our capital, the Company’s board of directors may consider the declaration of additional cash dividends and/or the establishment of a regular dividend. However, the declaration of future dividends will depend upon the Company’s financial position, strategic plans and general business conditions at that time.”
We encourage shareholders to contact their brokers and tax advisors in order to understand the Nasdaq Rules and Regulations as well as relevant tax implications regarding the effect of selling shares of our common stock following the record date on their eligibility to receive the dividend.
Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) and camera modules (CCMs). The primary focus of its subsidiaries is to develop and market high-quality products for the communications industry in China and export such products to markets in North America, Europe, and other countries throughout the world.
Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," “should,” "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company’s customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China’s trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances.