Wednesday, September 11, 2013
San Diego-based cell phone chip-maker Qualcomm announced a $5 billion stock repurchasing program today.
A previous repurchasing program announced in March returned 40.1 million shares of common stock, worth $2.7 billion, to the company's portfolio.
Paul Jacobs, Qualcomm's chairman and CEO, said the latest buyback "reflects our commitment to returning capital to stockholders while continuing to make substantial investments in new technologies and future growth opportunities.''
The company recently announced a 40 percent dividend increase to shareholders.
According to Qualcomm, the timing of stock repurchases and number of shares of stock to be repurchased will depend upon prevailing market conditions and other factors. The company plans to use its cash resources to reacquire stock in the open market, through programs used by company executives to sell their firm's stock at predetermined times, in privately negotiated transactions or through the use of derivative instruments.
The company reserved the right to commence or suspend the program at any time, or from time-to-time at its discretion without prior notice.