ALSC...already with solid earnings in, pullback over (hopefully), and now the company takes further initiative for additional buyback of shares showing their conviction that ALSC expects bigger and better times ahead...
Tuesday February 8, 10:07 am Eastern Time
Alliance Semi doubles share repurchase plan
SANTA CLARA, Calif., Feb 8 (Reuters) - Memory chip maker Alliance Semiconductor
Corp. (NasdaqNM:ALSC - news) said on Tuesday its board of directors had approved the
doubling of the company's share repurchase program, to 4 million shares.
Alliance, a maker of memory products such as Static Random Access Memory (SRAM),
Dynamic Random Access Memory (DRAM) and Flash memory microchips, said 500,000 shares had been repurchased under
the program, all in the current quarter.
The program, originally announced in June 1998, permits Alliance to repurchase its shares in the open market or in block
purchases.
``We are increasing the amount of our repurchase authorization because we believe that our stock is trading at a substantial
discount to its fundamental value,' said N.D. Reddy, chairman, president and chief executive of Alliance.
Positives for Alliance include that an operating profit is now being made and business appears to be good, Reddy said.
Underlying investments in United Microelectronics Corp. , Chartered Semiconductor Manufacturing Inc. (NasdaqNM:CHRT -
news) and Broadcom Corp. (NasdaqNM:BRCM - news) have an estimated market value of about $1.3 billion, which
represents about $30 per share on a pre-tax basis and $17 per share on an after-tax basis, Reddy said.
Alliance shares were unchanged at 17-5/16 in morning trade on the Nasdaq stock market.
In January the company said it would book a $908 million pretax gain ($532 million after taxes) in its fiscal fourth quarter
ending April 1 to account for its overseas investments.
More Quotes
and News:
Alliance Semiconductor Corp (NasdaqNM:ALSC - news)
Broadcom Corp (NasdaqNM:BRCM - news)
Chartered Semiconductor Manufacturing Ltd (NasdaqNM:CHRT - news)
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