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Financial objectives & goals
| We have three financial objectives that we seek to regularly achieve at TI and that should allow us to return value to our shareholders: |
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Grow revenue faster than our markets
Grow earnings per share faster than revenue
Use capital efficiently
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Overall, we’ve made consistent and steady progress on each of these metrics over the last five years.
For the first objective, we have gained share in analog and DSP for the last six consecutive years. In analog, we continue to increase our strength with more funding for R&D, more manufacturing capacity and a larger sales network. Our share gains in high-performance analog have been substantial, and we remain committed to growing the application-specific piece of our analog operations at a more robust pace. We’ve also built strength in digital semiconductors, especially those for embedded processing like catalog DSPs and low-power microcontrollers. Still in 2007, we did not meet the revenue growth expectations of ourselves or our shareholders, and have intensified our emphasis on growth as a top priority for our company.
For the second objective, we have grown our earnings per share (EPS) faster than revenue for five years. This growth has resulted from two factors: an improving product portfolio of higher-margin products and continuing stock repurchases that have allowed us to raise our EPS by reducing the number of shares that are outstanding.
For the third objective, TI increased our return on invested capital for the sixth year in a row, reaching 25.1 percent in 2007. The combination of higher profitability and better capital efficiency generated strong cash flow. In 2007, cash flow from operations totaled a record $4.41 billion.
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