We invest in R&D up to 18 months ahead of product launch and we recover our investments through the sale of our semiconductors. Our customers’ product cycles range from one to five years. This, together with the strength of our customer relationships, means the Company has long-term visibility of business opportunities and revenue streams, a unique feature for semiconductor companies operating in consumer markets.
A fabless business model based on high Tier 1 customer penetration results in high volumes, longer-term revenue streams and ultimately in strong cash generation.
Corporate responsibility and a commitment to sustainable business practices are important to us. Our commitment to sustainability is outlined in greater detail on our annual sustainability report.
Our people and IP are vital for our business and two of our key sustainability priorities.
We promote responsible business practices internally and across our supply chain.
Our power efficient technologies extend battery life and reduce materials consumption.
Our ongoing engagement with internal and external stakeholders helps us understand the impact of our activities and relationships on others – and how we can best manage these impacts in a responsible manner, as well as the potential risks and opportunities, to create value for all our stakeholders.
Our people drive the success of our business. We know the value a diverse workforce can bring in terms of creativity, dynamism and the sharing of new perspectives. Our culture supports an inclusive and collaborative workplace where everyone can achieve their full potential. Talent retention and development are vital to generating innovation. Our annual employee survey helps us understand what is important to our colleagues and where we need to focus.
Customers are at the core of our DNA. Our passion for innovation and the quality of our products attract the leading consumer electronic brands. We engage with our customers to better understand their requirements and their perception of the quality of the products we design for them. This helps us increase the value we bring into our products and our performance.
Dialog Semiconductor is listed in the Frankfurt stock exchange and a constituent of the TecDAX index. We encourage a two-way communication with potential investors and shareholders. Feedback from shareholders informs our Board discussions. We engage with investors and other agents in the financial markets in order to provide open and transparent business information so they can make informed decisions.
As a fabless business model, we have developed a strong and responsible relationship with our foundry, test and packaging partners. Dialog employees are based in many of the premises of our partners. We undertake annual audits of our existing fabrication partners covering operational and sustainability aspects.
Our business is grounded in the communities it operates and serves. We work together with universities and professional bodies, as well as local and national organisations. We aim to make a positive contribution to the communities in which we operate through technological advance and the enhancement of the local skills pool.
In 2017 we made further progress towards our strategic objectives to broaden our customer base and expand our product portfolio with the acquisitions of Silego Technology Inc. and the LED backlighting technology from ams AG.
In parallel to the improvement in consumer demand in the high-end of the smartphone market and the fast development of the IoT, the business delivered 13% revenue growth, increased underlying profitability and strong cash flow generation. We continued to implement our share buyback programme in 2017 returning approximately US$125 million (2016: US$60 million) to shareholders.
+12% CAGR 2012-2017
+30% CAGR 2013-2017
1 Free cash flow is defined as cash flow from operating activities minus capital expenditure
2 A reconciliation of non-IFRS measures can be found on pages 156-161 of the Annual report and accounts 2017.
Dialog’s 2017 revenue derived from Apple Inc., was US$1,043 million.
¹ A reconciliation of non-IFRS measures can be found on pages 156-161 of the Annual report and accounts 2017.
¹A reconciliation of non-IFRS measures can be found on pages 156-161 of the Annual report and accounts 2017.
Free cash flow is defined as cash flow from operating activities minus capital expenditure
We made good progress in 2017, charging ahead with initiatives in each of our strategic priorities.
Our goal is to generate sustainable long-term value for our customers, our shareholders, our employees and other stakeholders.
We believe in being entrepreneurial, always moving and decisive: delivering excellence, and keeping things simple.
We care about our impact and know that we make a difference: to our customers and their end consumers, to employees and to society.
We are at our best when we work together, across geographic and cultural boundaries. This is about sharing ideas, challenging each other and building strong relationships with our customers, employees and suppliers.
We have a passion for innovation and thrive on new ideas. This is about pushing boundaries and taking pride in new approaches.