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TAIPEI, Taiwan, Jan. 22, 2013 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO) ("Silicon Motion" or the "Company"), a global leader in designing and marketing NAND flash controllers for solid state storage devices and specialty RF IC solutions for mobile devices, announces today that its Board of Directors has authorized a new share repurchase program and has also approved its first quarterly cash dividend.
The new stock repurchase program authorizes the Company to purchase up to $40 million of its American Depositary Shares ("ADS") over a 12 month period. Since authorizing its first stock repurchase program in March 2008, the Company has spent $54.3 million to repurchase and retire 6.2 million ADSs.
Separately, the board of directors of the Company has declared the payment of its first quarterly dividend of $0.15 per ADS which will be paid on March 4, 2013 to all shareholders of record as of February 21, 2013.
"We are executing well on our long-term strategy and our investments in our New Growth Products have been paying off. In 2012, we grew our revenue approximately 25%, driven principally by rapid ramp of our new eMMC controllers and expanding sales of our LTE transceivers, our two major New Growth Products. Our New Growth Products now represent almost a third of our sales," said Wallace Kou, Silicon Motion's President and CEO. "We remain confident in our long-term strategy, growth prospects, strong financial position and ongoing ability to generate cash. We believe we have sufficient cash to invest in our future, and additionally can return some of our excess funds to shareholders through both a share repurchase as well as a dividend program."
Purchases under the new share repurchase program will be made in the open market or according to other methods in compliance with Rule 10b-18 of the Securities Exchange Act, subject to market conditions, applicable legal requirements and other factors. The plan does not obligate the Company to acquire any particular amount of ADSs, and it may be suspended at any time at the Company's discretion.