I'm with you Ryan. I love a company with a lot of cash on hand, but at some point the amount of cash and the time that it remains idle becomes a liability. Not in the traditional sense, but in the sense that that money could, and in a timely manner should, be out earning ROI. Your options are to buyback shares, which they may or may not have already done (I think they have), invest in growing the business (invest in new product lines or acquire other businesses) or provide a dividend. Or some mix of all three.
A dividend will attract more high class investors with deep pockets, accelerating capital appreciation. It will also, in turn, hasten more analyst coverage by reputable investment firms with higher price targets. If we get a dividend announcement as well as strong sequential growth, you can forget 15-20x earnings. We'll be looking at more like 25+ times earnings for appropriate valuation.
So my question is, why not?