2014 Q3 Financial Results
MediaTek Inc. Reports Third Quarter 2014 Consolidated Results
- 3Q14 consolidated revenue NT$57,472 million, up 6.2% from previous quarter
- 3Q14 consolidated gross margin 49.1%, down 0.5 percentage points from previous quarter
- 3Q14 consolidated operating income NT$13,794 million, up 8.1% from previous quarter
- 3Q14 consolidated net income NT$13,301 million; EPS NT$8.51
Consolidated Revenue
MediaTek Inc. today announced financial results of third-quarter ended September 30, 2014. Third quarter revenue was NT$57,472 million, up 6.2% sequentially, and up 47.3% year-over-year. The year-over-year increase was mainly due to revenue growth in smartphone and MStar revenue recognition.
Consolidated Gross Profit and Gross Margin
The third-quarter gross profit was NT$28,234 million, up 5.3% sequentially, and up 64.7% year-over-year. Gross margin for the quarter was 49.1%, down 0.5 percentage points sequentially and up 5.2 percentage points year-over-year. The year-over-year increase was mainly due to higher mix of smartphone and high-end products.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$14,440 million (25.1% of revenue), compared with NT$14,063 million (26.0% of revenue) in the previous quarter, and NT$9,274 million (23.8% of revenue) in the same period last year. The sequential and year-over-year increase was mainly due to increasing talent and technology investments, higher expenses associated with higher sales as well as MStar expenses recognition.
Operating expenses for the quarter included:
- R&D expenses of NT$11,538 million (20.1% of revenue), increased from NT$10,403 million in 2Q14, and increased from NT$7,075 million in 3Q13.
- Selling expenses of NT$1,521 million (2.6% of revenue), decreased from NT$2,072 million in 2Q14, and increased from NT$1,205 million in 3Q13.
- Administration expenses of NT$1,381 million (2.4% of revenue), decreased from NT$1,589 million in 2Q14, and increased from NT$995 million in 3Q13.
Consolidated Operating Profit and Operating Margin
Operating profit for the quarter was NT$13,794 million, up 8.1% sequentially, and up 75.4% year-over-year. Operating margin for the quarter was 24.0%, increased from 23.6% in the previous quarter, and increased from 20.2% in the year-ago quarter.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income of NT$1,119 million, or 1.9% of revenue, was mainly from interest income and investment income. Income tax expense for the quarter was NT$1,612 million.
Consolidated Net Income and Net Profit Margin and EPS
Net income was NT$13,301 million, up 6.0% sequentially, and up 58.0% year-over-year. Net profit margin for the quarter was 23.1%, decreased from 23.2% in the previous quarter, and increased from 21.6% in the year-ago quarter. EPS was NT$8.51, compared with NT$8.03 in the prior quarter and NT$6.28 in the year-ago quarter.
Consolidated Cash and Financial Assets-Current
Cash and financial assets-current at the end of the quarter was NT$194,721 million. This represents 58.1% of the company’s total assets. Cash and financial assets-current was NT$196,431 million and NT$113,192 million at the end of previous quarter and the year-ago quarter, respectively. Financial assets-current portfolio includes mutual funds, bonds, and derivatives.
Consolidated Accounts Receivable
Accounts receivable (net) at the end of the quarter was NT$ 15,418 million. The accounts receivable turnover was 23 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than 22 days last quarter, and lower than 25 days in the year-ago quarter.
Consolidated Inventory
Net inventory was NT$24,464 million at the end of the quarter. The inventory turnover was 68 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 60 days in the last quarter, and higher than 50 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Cash flow from operations during the quarter was NT$11,742 million, a decrease of NT$13,044 million from the prior quarter and an increase of NT$9,971 million from the year-ago quarter.
Earnings Webcast
MediaTek will hold a public webcast today (November 6). A live webcast of the conference call will be available through the Investor Relations section of the MediaTek website. Investors who want to raise questions may use the toll number attached below.
Schedule and Webcast Links:
In Mandarin 2:00 – 3:00 p.m. (Taiwan Time)
http://mediatek.ic.learn.hinet.net/2014Q3/mediatek.html
In English 4:00 – 5:00 p.m. (Taiwan Time)
http://mediatek-en.ic.learn.hinet.net/2014Q3/mediatek.html
Dial-in Number: +886-2-21928016
Password: 630384#
About MediaTek Inc.
MediaTek is a pioneering fabless semiconductor company, and a market leader in cutting-edge systems on a chip for wireless communications and connectivity, HDTV, DVD and Blu-ray. MediaTek created the world's first octa-core smartphone platform with LTE and our CorePilot™ technology releasing the full power of multi-core mobile processors. Through MediaTek Labs, the company is creating a worldwide ecosystem in support of device creation, application development and services based around MediaTek offerings. With an emphasis on enabling technology for the masses and not the chosen, everyone can be an Everyday Genius. MediaTek [TSE:2454] is headquartered in Taiwan and has offices worldwide. Please visit www.mediatek.com for more information.
MediaTek Inc.
Q3 FY14 Consolidated Income Statement
(In NT$ millions, except per share amounts)
3Q14 | 2Q14 | 3Q13 | Q-Q | Y-Y | |
|---|---|---|---|---|---|
Net Revenue | 57,472 | 54,133 | 39,008 | 6.2% | 47.3% |
Cost of Goods Sold | (29,238) | (27,309) | (21,867) | ||
Gross Profit | 28,234 | 26,824 | 17,140 | 5.3% | 64.7% |
Selling expenses | (1,521) | (2,072) | (1,205) | ||
Administration expenses | (1,381) | (1,589) | (995) | ||
R&D expenses | (11,538) | (10,403) | (7,075) | ||
Operating Expenses | (14,440) | (14,063) | (9,274) | ||
Operating Income | 13,794 | 12,760 | 7,866 | 8.1% | 75.4% |
Net Non-operating Income | 1,119 | 1,392 | 1,169 | ||
Income Before Income Tax | 14,913 | 14,153 | 9,035 | ||
Income tax expense | (1,612) | (1,605) | (619) | ||
Consolidated Net Income | 13,301 | 12,549 | 8,416 | 6.0% | 58.0% |
EPS Attributable to the Parent(NT$) | 8.51 | 8.03 | 6.28 |
Note: Numbers do not add up due to rounding.
Q3 FY14 Supplemental Information: Percentage of Revenue
3Q14 | 2Q14 | 3Q13 | |
|---|---|---|---|
Gross profit | 49.1% | 49.6% | 43.9% |
Selling expenses | (2.6 %) | (3.8 %) | (3.1 %) |
Administration expenses | (2.4 %) | (2.9 %) | (2.6 %) |
R&D expenses | (20.1 %) | (19.2 %) | (18.1 %) |
Operating profit | 24.0% | 23.6% | 20.2% |
Non-operating income | 1.9% | 2.6% | 3.0% |
Income tax expense | (2.8 %) | (3.0 %) | (1.6 %) |
Net profit | 23.1% | 23.2% | 21.6% |
Note: Numbers do not add up due to rounding.
MediaTek Inc.
Consolidated Balance Sheet
(In NT$ millions)
3Q14 | 2Q14 | 3Q13 | |
|---|---|---|---|
Cash & Financial assets-current | 194,721 | 196,431 | 113,192 |
Accounts receivable | 15,418 | 12,983 | 11,059 |
Inventories | 24,464 | 19,326 | 12,938 |
Funds and investments | 12,179 | 9,918 | 66,540 |
Intangible assets | 59,259 | 59,488 | 15,332 |
Total assets | 335,083 | 323,857 | 238,195 |
Short-term loans | 43,454 | 34,046 | 19,760 |
Accounts payable | 21,307 | 18,439 | 12,520 |
Other current liabilities | 37,622 | 55,266 | 18,690 |
Long-term liabilities & Other liabilities | 1,721 | 1,789 | 2,125 |
Stockholders’ equity | 230,979 | 214,317 | 185,099 |
MediaTek Inc.
Consolidated Cash Flow Summary
(In NT$ millions)
3Q14 | 2Q14 | 3Q13 | |
|---|---|---|---|
Cash flow from operations | 11,742 | 13,044 | 9,971 |
Cash flow from investing | (4,690) | 22 | (374) |
Cash flow from financing | (13,726) | 12,228 | (8,301) |
Effect of exchange rate changes | 1,607 | (2,155) | (905) |
Net increase in cash & equivalents | (5,068) | 23,139 | 392 |
Cash & equivalents at quarter end | 185,070 | 190,138 | 107,617 |
Note: Numbers do not add up due to rounding.