DTS Inc. on Monday said that its board approved a plan to repurchase up to one million shares of the sound technology company's common stock in the open market or privately negotiated transactions.

“We believe this repurchase plan underscores our confidence in the company’s promising future,” Chief Executive Jon Kirchner said in a statement. “We believe the plan is a prudent use of cash, and reinforces our ongoing commitment to building long-term shareholder value.”

The Calabasas company has 17.5 million shares outstanding. The price prior to the repurchase announcement was down 9 percent from its 52-week high. DTS last week reported a third quarter profit that missed Wall Street estimates by a cent, partly hurt by higher expenses. It lowered the upper end of its fiscal 2009 outlook.

The company earned $1.9 million (11 cents a share), compared with $2 million (11 cents) a year ago. Revenue was up 8 percent to $15.1 million, in large part due to increased production of stand-alone Blu-ray disc players that use DTS decoders.

Shares were up $1.41, or 4.7 percent, to $31.13 in midday trading on the Nasdaq.