Semtech Authorized to Buy Back Common Stock

Newbury Park-based Semtech Corp. has been authorized by its directors to buy back its common stock as a possible way to bolster the price of the shares.

Semtech, which produces electronic components for military and commercial customers, has seen its stock price fall dramatically in recent years. The shares traded in the $1.80 range last week on the American Stock Exchange, down from a five-year high of $5.50 in June, 1988.

In a statement, Semtech said the board has limited the repurchases “to blocks of shares from time to time resulting from offers received by the company.”

There are no immediate plans to repurchase shares, said Gigi Auchter, assistant controller and assistant corporate secretary. But John C. Poe, president and chief executive officer, said the board views the stock as an attractive investment.

“The repurchases should enhance the value of the remaining shares outstanding and benefit the company and our shareholders,” he said. “We believe that the true value of the company is not currently reflected in the market price.”

Semtech’s earnings in the first nine months of this year were off 90% from the same period last year.