Tue, Mar 21, 2017 - Page 12 News List

Phison Electronics to pay NT$14 cash dividend per share

By Lisa Wang  /  Staff reporter

NAND flash memory controller supplier Phison Electronics Corp (群聯電子) yesterday said its board has approved plans to distribute a cash dividend of NT$14 per common share after reporting a record net profit for last year.

That payout would be higher than the cash dividend of NT$12 per common share the company issued last year.

Net profit jumped 21 percent to NT$4.8 billion (US$157.24 million) last year, an increase from 2015’s NT$3.96 billion, as the firm benefited from price hikes amid a supply crunch, a company statement said.

Earnings per share last year rose to NT$24.67 from NT$20.41 per share in 2015, company data showed.

The latest arrangement represents a 57 percent dividend payout ratio, slightly lower than 59 percent in 2015 and 64 percent in 2014, the company said in the statement.

It implied a 5.23 percent dividend yield based on Phison’s closing price of NT$267.5 yesterday.

“As the company plans to invest in cutting-edge technologies and expand product lines, as well as seek strategic partners, Phison needs to have more leeway in its cash position,” company chairman Pua Khein-seng (潘健成) said in the statement.

The company’s board of directors yesterday approved selling 20 million new common shares via private placement.

The share offering aims to seek technology cooperation or a strategic alliance with industry leaders as well as replenish operational capital for the company’s long-term development, Phison said.

Japan’s Toshiba Corp is a long-term partner of Phison’s as a NAND memory chip supplier. Toshiba is Phison’s biggest shareholder, with a 10 percent share.

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