Benzinga | Dec 6, 2021 06:01PM EST

Silicon Motion Reports $200M Buyback; Reaffirms Guidance

Silicon Motion Technology Corporation (NasdaqGS: SIMO) ("Silicon Motion" or the "Company") today announced that its Board of Directors has authorized a new share repurchase program and approved related cash disbursement for the Company to repurchase up to $200 million of its American Depositary Shares (ADSs) over a 6-month period, effective immediately.

"With less than a month to go, 2021 is turning out to be a stellar year for us and we are excited about our prospects next year," said Wallace Kou, Silicon Motion's President and CEO. "We have a long track record of returning excess capital to shareholders, primarily through dividends, but also though share repurchases. On October 25, we announced our annual dividend that is 43% higher than the previous one. We are now following up with a program to purchase up to $200 million of our ADSs over the next six months."

Repurchases under the new program will be made in the open market or according to other methods in compliance with Securities and Exchange Commission Rule 10b-18, subject to market conditions, applicable legal requirements and other factors. The Company expects to use cash on hand to fund the repurchases. The program does not obligate the Company to acquire any particular amount of ADS, and it may be suspended at any time at the Company's discretion.

The Company also reaffirms its fourth quarter financial guidance as originally provided on its third quarter earnings release and filed on Form 6-K on October 28, 2021. Silicon Motion's policy is to not reiterate or adjust financial guidance unless it is also done through a public disclosure such as a press release or Form 6-K, as done here.

As of September 30, 2021, the Company had approximately $419.5 million of cash, cash equivalents, restricted cash and short-term investments.