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Evolution of the business to accelerate market leadership and drive customer & shareholder value
DALLAS, Feb. 16, 2023 /PRNewswire/ — Trend Micro Incorporated ((4704, TSE: 4704)), a global cybersecurity leader, today announced that its Board of Directors has agreed to its multi-pronged capital allocation strategy in another step toward transforming the business and commitment to all stakeholders.
Over Trend Micro’s long history of profitable growth, it has accumulated a cash balance which the board believes exceeds its liquidity requirements. In recognition of this excess liquidity, the board of directors is commencing a capital allocation strategy which is expected to reduce the excess liquidity and improve returns on capital. The amount of excess capital will be consistent with the companies guiding principal of being a sustainable, superior performing business while accounting for obligations to pay dividends in the future.
As a first step in this direction, Trend has announced up to 50Bn JPY share buybacks in the near future, with 25Bn JPY to start immediately. After this buyback, the company will continue to focus on improving the efficiency of the balance sheet by reducing the cash balance through a combination of share repurchases, acquisitions, and the continuation of the company’s dividend policy which pays out 70% of net operating profits.
The company’s philosophy of driving innovation organically through our 3,000+ person global engineering team remains unchanged, as well as our need to selectively pursue small technology tuck-ins when we identify features that could be added to our market leading platform that make us more effective for fighting threat actors.
Alongside this new capital allocation strategy, Trend has revealed a brand refresh designed to cement the firm’s emerging status as an expansive SaaS-First security platform provider serving over 400,000 enterprise customers in nearly every country. A modernized corporate logo signals a bold…
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