SMSC plans to buy back 2.5M shares

The board of Hauppauge-based Standard Microsystems Corp., a maker of mixed-signal analog/digital computer chips and networks for USB, Ethernet and wireless connections, has authorized a 2 million increase in the number of shares in a repurchase program. 

The company is now authorized to repurchase 2.5 million of its own shares, more than 10 percent of its total public stock issue. SMSC had 23,108,000 fully diluted outstanding common shares as of Feb. 28.

SMSC closed Friday at $27.15. 

The stock repurchase program comes after SMSC in February lost out in its bid to acquire a rival California company. In January, SMSC offered $2.25 a share, or about $284 million, in an initial bid for Conexant Systems Inc., and appeared to have sealed the deal. 

But San Francisco-based private equity company Golden Gate Capital offered $2.40 a share for Conexant, and SMSC decided not to match or beat that offer. 

"The share repurchase will be funded using the company's existing cash balance and future cash flows," SMSC said in a Monday news release. 

"These repurchases may occur through transactions structured through investment banking institutions, open market purchases, privately negotiated transactions and/or other mechanisms." 

SMSC supplies factory-installed entertainment and information systems to Audi, BMW, Hyundai, Jaguar, Land Rover, Mercedes-Benz, Porsche, Toyota, Volkswagen and Volvo.

"Standard Microsystems Corp. engages in the design and sale of silicon-based integrated circuits that use analog and mixed-signal technologies," a Yahoo Finance profile says. "The company offers USB 2.0 hub controllers and combination hub/flash memory card reader products; USB 2.0 flash memory card readers; USB-to-Ethernet controllers; 10 Mbps, 100 Mbps, and 1 Gbps Ethernet controllers and transceivers. . ." 

Photo: SMSC's new OS81092 chip for car entertainment systems. (Undated)