Fairchild Semiconductor announced that its Board of Directors has authorized the repurchase of up to $100 million of the company's common stock. Fairchild will repurchase shares from time to time in the open market or in privately negotiated transactions.
"We are excited to initiate this enhanced share repurchase program as an efficient method to return excess cash to our shareholders," said Mark Thompson, Fairchild's chairman and CEO. "Fairchild has consistently reduced debt and strengthened its balance sheet during the last five years. We completed a significant investment cycle to increase our 8 inch wafer fabrication capabilities last year and now expect lower capital spending for many years. The operational efficiency actions we are planning should further increase our profitability and cash flow. This share repurchase program illustrates Fairchild's confidence in its ability to grow sales and earnings as well as our commitment to shareholders."
This authorization permits the company to repurchase up to $100 million of common stock before December 31, 2014. This repurchase program is expected to reduce share count by approximately 6% based on the current stock price.
