Conditional access systems provider China Digital TV has declared a special cash dividend of US$0.56 (£0.34) per share on the company's ordinary shares, par value US$0.0005 per share.
Shareholders of record as of the close of business on 20 June 2011 will be eligible to receive the dividend. The total amount of the dividend is US$33.421m, which will be allocated from net income attributable to China Digital TV for the fiscal year 2010. The dividend is expected to be paid on or around 30 December 2011.
Jianhua Zhu, China Digital TV's chairman and chief executive officer, said: "Our board of directors believes that maximising shareholder value through a special dividend is an efficient use of cash at this time. Furthermore, our strong cash position will allow us to continue to support our multiple long-time growth objectives."
This is the third time the company has declared dividends to its shareholders since its initial public offering and listing on the NYSE in 2007. The company's first declaration of dividends was announced in December 2008 and paid in January 2009. The second declaration of $2.00 per ADS was announced in November 2010 with two payment installments of $1.00 per ADS each, of which the first installment was paid out in January 2011 and the second is scheduled for payment in May 2011. Going forward, China Digital TV's board of directors will evaluate and make decisions on the company's dividend policy from time to time based on various factors affecting shareholder value.
As of 31 March 2011, China Digital TV had cash and cash equivalents, restricted cash and short-term investments totaling US$214.8m, or US$3.64 per share on a diluted basis.