2015 Q1 Financial Results
MediaTek Inc. Reports First Quarter 2015 Consolidated Results
- 1Q15 consolidated revenue of NT$47,536 million, down 14.3% from the previous quarter
- 1Q15 consolidated gross margin of 47.3%, down 0.6 percentage points from the previous quarter
- 1Q15 consolidated operating income of NT$7,672 million, down 22.3% from the previous quarter
- 1Q15 consolidated net income of NT$7,251 million; EPS NT$4.62
Consolidated Revenue
MediaTek Inc. today announced financial results of first-quarter ended March 31, 2015. First quarter revenue was NT$47,536 million, down 14.3% sequentially, and up 3.3% year-over-year. The quarter-over-quarter and year-over-year changes were mainly due to traditional low season in the first quarter and weakening smartphone growth momentum in emerging markets resulting from the rapid appreciation of US dollar.
Consolidated Gross Profit and Gross Margin
The first-quarter gross profit was NT$22,499 million, down 15.4% sequentially, and up 1.2% year-over-year. Gross margin for the quarter was 47.3%, down 0.6 percentage points sequentially and down 1.0 percentage points year-over-year. The quarter-over-quarter and year-over-year decrease were mainly due to smartphone product transition and market competition.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$14,827 million (31.2% of revenue), compared with NT$16,711 million (30.1% of revenue) in the previous quarter, and NT$11,413 million (24.8% of revenue) in the same period last year. The quarter-over-quarter decrease was mainly due to lower seasonal expenses, revenue-associated expenses and one-time charges. The year-over-year increase was mainly due to increasing talent and technology investments.
Operating expenses for the quarter included:
- R&D expenses of NT$10,851 million (22.8% of revenue), decreased from NT$12,481 million in 4Q14, and increased from NT$8,915 million in 1Q14.
- Selling expenses of NT$2,169 million (4.6% of revenue), decreased from NT$2,646 million in 4Q14, and increased from NT$1,134 million in 1Q14.
- Administration expenses of NT$1,807 million (3.8% of revenue), increased from NT$1,584 million in 4Q14, and increased from NT$1,363 million in 1Q14.
Consolidated Operating Profit and Operating Margin Operating profit for the quarter was NT$7,672 million, down 22.3% sequentially, and down 29.0% year-over-year. Operating margin for the quarter was 16.1%, decreased from 17.8% in the previous quarter, and decreased from 23.5% in the year-ago quarter.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income of NT$470 million, or 1.0% of revenue, was mainly from interest income and foreign exchange gains. Income tax expense for the quarter was NT$891 million.
Consolidated Net Income, Net Profit Margin and EPS
Net income was NT$7,251 million, down 30.3% sequentially, and down 28.5% year-over-year. Net profit margin for the quarter was 15.3%, decreased from 18.8% in the previous quarter, and decreased from 22.0% in the year-ago quarter. EPS was NT$4.62, compared with NT$6.65 in the prior quarter and NT$6.82 in the year-ago quarter.
Consolidated Cash and Financial Assets-Current
Cash and financial assets-current at the end of the quarter was NT$204,952 million. This represents 56.3% of the company’s total assets. Cash and financial assets-current was NT$205,294 million and NT$173,917 million at the end of previous quarter and the year-ago quarter, respectively. Financial assets-current portfolio includes mutual funds, bonds, and derivatives.
Consolidated Accounts Receivable
Accounts receivable (net) at the end of the quarter was NT$ 13,347 million. The accounts receivable turnover was 25 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than 23 days in the previous quarter, and higher than 21 days in the year-ago quarter.
Consolidated Inventory
Net inventory was NT$28,085 million at the end of the quarter. The inventory turnover was 92 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 74 days in the previous 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$6,000 million, a decrease from NT$10,404 million in the prior quarter and a decrease from NT$9,140 million in the year-ago quarter.
Earnings Webcast
MediaTek will hold a public webcast today (April 30). A live webcast of the conference call will be available through the Investor Relations section of the MediaTek website. Investors who want to raise questions may use the toll number attached below.
Schedule and Webcast Links:
In Mandarin 2:00 – 3:00 p.m. (Taiwan Time) http://mediatek.ic.learn.hinet.net/2015Q1/mediatek.html
In English 4:00 – 5:00 p.m. (Taiwan Time) http://mediatek-en.ic.learn.hinet.net/2015Q1/mediatek.html
Dial-in Number: +886-2-21928016
Password: 712687#
About MediaTek Inc.
MediaTek is a pioneering fabless semiconductor company, and a market leader in cutting-edge Systems on Chip for wireless communications and connectivity, HDTV, DVD and Blu-ray. MediaTek created the world’s first True 8core™ smartphone platform with LTE and our CorePilot® technology releasing the full power of multi-core mobile processors. Through MediaTek Labs, the company is creating a worldwide ecosystem in support of device creation, application development and services based around MediaTek offerings. With an emphasis on enabling technology for the masses and not the chosen, everyone can be an Everyday Genius®. MediaTek [TSE:2454] is headquartered in Taiwan and has offices worldwide. Please visit www.mediatek.com for more information.
MediaTek Inc.
Q1 FY15 Consolidated Income Statement
(In NT$ millions, except per share amounts)
1Q15 | 4Q14 | 1Q14 | Q-Q | Y-Y | |
|---|---|---|---|---|---|
Net Revenue | 47,536 | 55,453 | 46,005 | (14.3 %) | 3.3% |
Cost of Goods Sold | (25,038) | (28,868) | (23,779) | ||
Gross Profit | 22,499 | 26,585 | 22,226 | (15.4 %) | 1.2% |
Selling expenses | (2,169) | (2,646) | (1,134) | ||
Administration expenses | (1,807) | (1,584) | (1,363) | ||
R&D expenses | (10,851) | (12,481) | (8,915) | ||
Operating Expenses | (14,827) | (16,711) | (11,413) | ||
Operating Income | 7,672 | 9,874 | 10,813 | (22.3 %) | (29.0 %) |
Net Non-operating Income | 470 | 1,908 | 688 | ||
Income Before Income Tax | 8,142 | 11,782 | 11,501 | ||
Income tax expense | (891) | (1,372) | (1,362) | ||
Consolidated Net Income | 7,251 | 10,410 | 10,139 | (30.3 %) | (28.5 %) |
EPS Attributable to the Parent(NT$) | 4.62 | 6.65 | 6.82 |
Note: Numbers do not add up due to rounding.
Q1 FY15 Supplemental Information: Percentage of Revenue
1Q15 | 4Q14 | 1Q14 | |
|---|---|---|---|
Gross profit | 47.3% | 47.9% | 48.3% |
Selling expenses | (4.6 %) | (4.8 %) | (2.5 %) |
Administration expenses | (3.8 %) | (2.9 %) | (3.0 %) |
R&D expenses | (22.8 %) | (22.5 %) | (19.4 %) |
Operating profit | 16.1% | 17.8% | 23.5% |
Non-operating income | 1.0% | 3.4% | 1.5% |
Income tax expense | (1.9 %) | (2.5 %) | (3.0 %) |
Net profit | 15.3% | 18.8% | 22.0% |
Note: Numbers do not add up due to rounding.
MediaTek Inc.
Consolidated Balance Sheet
(In NT$ millions)
1Q15 | 4Q14 | 1Q14 | |
|---|---|---|---|
Cash & Financial assets-current | 204,952 | 205,294 | 173,917 |
Accounts receivable | 13,347 | 12,552 | 13,572 |
Inventories | 28,085 | 22,341 | 16,649 |
Funds and investments | 17,236 | 15,001 | 10,122 |
Intangible assets | 63,007 | 60,758 | 60,584 |
Total assets | 363,834 | 351,119 | 298,543 |
Short-term loans | 50,934 | 46,161 | 22,101 |
Accounts payable | 19,650 | 14,605 | 17,421 |
Other current liabilities | 37,575 | 40,854 | 29,008 |
Long-term liabilities & Other liabilities | 2,055 | 1,893 | 1,615 |
Stockholders’ equity | 253,620 | 247,606 | 228,398 |
MediaTek Inc.
Consolidated Cash Flow Summary
(In NT$ millions)
1Q15 | 4Q14 | 1Q14 | |
|---|---|---|---|
Cash flow from operations | 6,000 | 10,404 | 9,140 |
Cash flow from investing | (6,955) | (8,712) | 31,182 |
Cash flow from financing | 4,859 | 3,086 | (7,745) |
Effect of exchange rate changes | (558) | 2,949 | 1,424 |
Net increase in cash & equivalents | 3,346 | 7,727 | 34,001 |
Cash & equivalents at quarter end | 196,143 | 192,798 | 166,999 |
Note: Numbers do not add up due to rounding.