We continue to make progress on our strategic journey to create a stronger TI and to deliver sustained, long-term results. We are focusing our resources and investments on the best products, analog and embedded processing, and the best markets, industrial and automotive.
Our business model is designed around four sustainable competitive advantages that we believe, in combination, provide tangible benefits and are difficult to replicate. These are:
- a strong foundation of manufacturing and differentiated technology
- the broadest portfolio of Analog and Embedded products
- the broadest reach of market channels
- the diversity and longevity of our products, markets and customer positions.
We believe these competitive advantages will benefit us for years to come.
Combined, our business model, our competitive advantages and our strategic focus allow us to gain share, grow profitability and generate sustainable free cash flow*, giving us the ability to provide continuing returns to our shareholders. Long term, we believe the ability to generate cash, specifically free cash flow growth on a per-share basis, is what matters most to any business. We also believe that free cash flow will be valued only if it is productively reinvested in the business or returned to shareholders.
* Free cash flow = cash flow from operations less capital expenditures