Himax Technologies, Inc. ( HIMX ) shares are trading higher in premarket on Wednesday following the announcement of a new share buyback program.

The company’s Board of Directors has approved the repurchase of up to $20 million worth of its American Depository Shares in the open market or through privately negotiated transactions.

This program, effective immediately, does not obligate Himax ( HIMX ) to repurchase any specific number of ADSs and can be modified or suspended at the company’s discretion, the company said.

Himax ( HIMX ) had $206.5 million of cash, cash equivalents and other financial assets at the end of September 2024, compared to $253.8 million a quarter ago and $155.4 million at the same time last year.

The sequential decrease in cash balance was mainly the result of a $50.7 million payment for annual dividends.

Himax’s President and CEO, Jordan Wu, emphasized that since its IPO in 2006, the company has returned over $1 billion to shareholders through buybacks and dividends.

The new share buyback program highlights Himax’s long-term growth prospects in high-growth sectors such as automotive, artificial intelligence, wafer-level optics, and OLED technologies.

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Wu also noted that the company remains focused on strategic investments in these high-growth sectors, which support its ongoing efforts to drive innovation and create long-term value for shareholders. The diversified portfolio positions Himax ( HIMX ) well to weather market fluctuations and capitalize on emerging opportunities across multiple industries.

The company’s inventories as of September 30 were $192.5 million, lower than the $203.7 million last quarter and $259.6 million in the same period last year, indicating a well-managed and balanced inventory level from quarter to quarter.

Price Action: HIMX shares are trading higher by 3.31% to $5.62 premarket at last check Wednesday.

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