Himax Technologies, Inc. (NASDAQ:HIMX) shares are trading higher in premarket on Wednesday following the announcement of a new share buyback program.
The company's Board of Directors has approved the repurchase of up to $20 million worth of its American Depository Shares in the open market or through privately negotiated transactions.
This program, effective immediately, does not obligate Himax to repurchase any specific number of ADSs and can be modified or suspended at the company's discretion, the company said.
Himax had $206.5 million of cash, cash equivalents and other financial assets at the end of September 2024, compared to $253.8 million a quarter ago and $155.4 million at the same time last year.
The sequential decrease in cash balance was mainly the result of a $50.7 million payment for annual dividends.
Himax's President and CEO, Jordan Wu, emphasized that since its IPO in 2006, the company has returned over $1 billion to shareholders through buybacks and dividends.
The new share buyback program highlights Himax's long-term growth prospects in high-growth sectors such as automotive, artificial intelligence, wafer-level optics, and OLED technologies.
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Wu also noted that the company remains focused on strategic investments in these high-growth sectors, which support its ongoing efforts to drive innovation and create long-term value for shareholders. The diversified portfolio positions Himax well to weather market fluctuations and capitalize on emerging opportunities across multiple industries.
The company's inventories as of September 30 were $192.5 million, lower than the $203.7 million last quarter and $259.6 million in the same period last year, indicating a well-managed and balanced inventory level from quarter to quarter.
Price Action: HIMX shares are trading higher by 3.31% to $5.62 premarket at last check Wednesday.
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