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 business has delivered strong revenue and earnings growth over the last five years. 2016 was a transition year of strong cash flow generation and solid strategic progress. Against the backdrop of lower year-on-year smartphone volumes, our gross margin and cash flow generation remained strong. In line with our strategic objectives, we sustained a healthy level of R&D investment to generate future profitable growth.
Our primary focus is consumer electronics, in particular mobility and smart connected devices. We are entering new segments and expanding our product portfolio to generate future revenue growth. Dialog is a strong cash generative business with a strong balance sheet.
+18% CAGR 2011-2016
+39% CAGR 2011-2016
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 152-158 of the Annual report and accounts 2016.
Our top five customers represented 92% of the total revenue. The revenue derived from our largest customer is shown on page 138, note 32.c) of the Annual report and accounts 2016
¹ A reconciliation of non-IFRS measures can be found on pages 152-158 of the Annual report and accounts 2016.
¹A reconciliation of non-IFRS measures can be found on pages 152-158 of the Annual report and accounts 2016.
Free cash flow is defined as cash flow from operating activities minus capital expenditure
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.