Texas Instruments Incorporated (NASDAQ:TXN) Q1 2024 Earnings Call Transcript

Dave Pahl: Yes. And it’s a great question, Chris. So let me just use as a backdrop for those that hadn’t looked at our capital management slide deck. And Slide 21, shows our percentage of our revenue by end-market. And the middle column there talks about what we’re doing directionally from an R&D spend. So — and we’ve talked about for some time that — our belief that there is going to be secular trends and increasing semiconductors and industrial and automotive. And as a result of that, we have been taking investments up there. And the other markets though, if you look at personal electronics and communications equipment, our investments there have been and continue to be very steady because we can find great opportunities inside of those markets.

And so we’ll continue those investments. And then enterprise systems, we’ve taken up the investments there slightly. And there is just opportunities, and enterprise systems likely will be a good grower as well. It doesn’t have quite the same dynamics, as industrial and automotive for us. But certainly, things that sit inside of enterprise we believe will make that an above-average grower over the next decade [plus] (ph). So with that, I’ll turn it over to Rafael to wrap up.

Rafael Lizardi: Okay. Thanks, Dave. Let me wrap up by emphasizing what we have said previously. At our core, we are engineers and technology is the foundation of our company. But ultimately, our objective and the best metric to measure progress and generate value for owners is the long-term growth of free cash flow per share. While we strive to achieve our objective, we will continue to pursue our three ambitions. We will act like owners who will own the company for decades. We will adapt and succeed in a world that’s ever changing. And we will be a company that we’re personally proud to be a part of and would [want] (ph) as our neighbor. When we’re successful, our employees, customers, communities and owners all benefit. Thank you and have a good evening.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.