Fingerprint sensor supplier Egis Technology (Egistec) has announced plans to repurchase two million shares or 2.82% of the company's outstanding shares at between NT$82 (US$2.66) and NT$220 per unit through November 18. The bought-back shares will be distributed to employees.
Egistec added it will spend up to NT$1.74 billion on the repurchased shares.
Egistec has reportedly been a supplier for Samsung Electronics' smartphones and started obtaining orders for the flagship Galaxy devices. Nevertheless, with rival Goodix Technology also breaking into the supply chain for Samsung's Galaxy phones, Egistec is encountering growing competition from the China-based company, according to market watchers.
Egistec has reportedly lost part of its Samsung orders to Goodix, including orders for the upcoming Galaxy A series.
The watchers also expressed caution about Egistec's revenues for the third quarter, which are forecast to stay flat on quarter bucking seasonal trends.
Egistec is set to fall behind Goodix in the optical fingerprint identification chip segment, the watchers indicated. Goodix has already landed orders for models with all-screen designs from smartphone vendors including Vivo and Samsung, with volume shipments slated to kick off in 2019, while Egistec will not fulfill orders for all-screen models until 2020, the watchers said.
