MILPITAS, Calif. (AP) -- IXYS Corp. said Monday that its board has approved a plan to buy back up to 1 million shares, or about 3 percent of the chip maker's 31 million shares outstanding. Its shares rose more than 6 percent in afternoon trading.
The repurchases will be made from time to time on the open market, the company said.
IXYS, which makes semiconductors used in controlling and converting electrical power, noted that a stock repurchase plan approved in February 2011 also remains in effect.
Buybacks reduce the number of shares outstanding, boosting per-share earnings and expanding the percentage size of current shareholders' stakes.
IXYS shares jumped 58 cents, or 6.1 percent, to $10.03 in afternoon trading. The stock has traded between $8.48 and $14.51 over the past 52 weeks.