Qualcomm Inc. (NASDAQ:QCOM), the largest seller of semiconductors for mobile phones, advanced in after-hours trades after saying its board has approved a $5 billion stock repurchase plan.
The program replaces a $5 billion plan announced on March 5, the San Diego, California-based company said in a statement yesterday.
The new stock-buyback program has no expiration date, and the company said the repurchases will be made using its cash resources. Qualcomm had more than $30 billion of cash and marketable securities at the end of its fiscal third quarter.
Qualcomm shares rose 1.1 percent to $68.84 at 7:59 a.m. in New York yesterday. The stock had closed down 2.9 percent to $68.09 in regular-hours trades, trimming this year's gains to 10 percent.
Qualcomm has repurchased about 40.1 million shares of common stock for $2.7 billion since July 24.
"This reflects our commitment to returning capital to stockholders while continuing to make substantial investments in new technologies and future growth opportunities," Chief Executive Officer Paul E. Jacobs said in the statement.
Semiconductor companies increasingly use their capital to buy back stock and pay dividends as they benefit from the growing popularity of smartphones, supply wireless processors to customers like Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. (KRX:005930) and collect money from license payments tied to their technology.