Sycamore Networks, Inc. (NASDAQ: SCMR) announced that, on September 19, 2012, its Board of Directors approved a special cash distribution of $10.00 per share of common stock. The cash distribution will be paid on October 11, 2012 to stockholders of record as of October 1, 2012. In accordance with NASDAQ Rule 11140(b), the ex-dividend date will be October 12, 2012, the first business day following the payment date for the cash distribution.
The special dividend has a current yield of 64%. Sycamore Networks has a market cap of $423 million. The 12-month price target is $16.25. Sycamore Networks has an equity summary score of 0.4 for a very bearish outlook. If you dare, get in and out of this stock for the special dividend but do not expect to hold longer than ex-dividend period.
Sycamore Networks also announced revenue for its fiscal fourth quarter and year ended July 31, 2012 of $16.8 millionand $57.3 million, respectively. This compares to $13.0 million and $48.7 million for the comparable 2011 fiscal periods.
Sycamore Networks develops and markets intelligent bandwidth management solutions for fixed line and mobile network operators worldwide. They also develop and market a mobile broadband solution designed to help mobile operators reduce congestion in mobile access networks. Sycamore products enable network operators to efficiently and cost-effectively provision and manage network capacity to support a wide range of converged services such as voice, video and data.