Jul 31, 2018 - 3:40 PM

MediaTek Inc. Reports Second Quarter 2018 Consolidated Results

MediaTek discloses Taiwan-International Financial Reporting Standards (TIFRS) financial measures and also provides Non-Taiwan-International Financial Reporting Standards (Non-TIFRS)^Note1 financial measures as supplemental information. Non-TIFRS financial information should be considered in addition to, not as a substitute for, TIFRS financial information. Earnings distribution is made in accordance with financial statements based on TIFRS.

Taiwan-International Financial Reporting Standards (TIFRS) financial measures

• 2Q18 consolidated revenue of NT$60,481 million, up 21.8% from previous quarter
• 2Q18 consolidated gross margin of 38.2%, down 0.2 percentage points from previous quarter
• 2Q18 consolidated operating income of NT$4,092 million, up 112.1% from previous quarter
• 2Q18 consolidated net income of NT$7,498 million; EPS of NT$4.75

Consolidated Revenue

MediaTek Inc. today announced financial results of second-quarter ended June 30, 2018. The second-quarter revenue was NT$60,481 million, up 21.8% sequentially, and up 4.1% year-over-year. The quarter-over-quarter increase was mainly due to the ramp-up of smartphone new products. The year-over-year increase was mainly due to stronger sales from smartphone and certain consumer electronics.  

Consolidated Gross Profit and Gross Margin

The second-quarter gross profit was NT$23,113 million, up 21.1% sequentially, and up 13.7% year-over-year. Gross margin for the quarter was 38.2%, down 0.2 percentage points sequentially, and up 3.2 percentage points year-over-year. The quarter-over-quarter and year-over year movements were mainly due to product mix changes.

Consolidated Operating Expenses

Operating expenses for the quarter was NT$19,020 million (31.4% of revenue), compared with NT$17,155 million (34.5% of revenue) in the previous quarter, and NT$17,972 million (30.9% of revenue) in the same period last year. The quarter-over-quarter and year-over-year increase were mainly due to one-time expense recognition resulting from the disposal of investments this quarter.

Operating expenses for the quarter included:

•  R&D expenses of NT$14,272 million (23.6% of revenue), increased from NT$13,316 million in the previous quarter, and increased from NT$13,624 million in the same period last year.
• Selling expenses of NT$2,935 million (4.9% of revenue), increased from NT$2,163 million in the previous quarter, and increased from NT$2,715 million in the same period last year.
• Administration expenses of NT$1,814 million (3.0% of revenue), increased from NT$1,676 million in the previous quarter, and increased from NT$1,632 million in the same period last year.

Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$4,092 million, up 112.1% sequentially, and up 73.5% year-over-year. Operating margin for the quarter was 6.8%, increased from 3.9% in the previous quarter, and increased from 4.1% in the year-ago quarter.

Consolidated Non-operating Income (loss) and Income Tax

Non-operating income for the quarter was NT$4,665 million, or 7.7% of revenue. It was mainly from the gains on disposal of investments. Income tax expense for the quarter was NT$1,260 million.

Consolidated Net Income, Net Profit Margin and EPS

Net income for the quarter was NT$7,498 million, up 181.9% sequentially, and up 239.3% year-over-year. Net profit margin for the quarter was 12.4%, increased from 5.4% in the previous quarter, and increased from 3.8% in the year-ago quarter. EPS was NT$4.75, compared with NT$1.69 in the prior quarter and NT$1.51 in the year-ago quarter. The quarter-over-quarter increase was due to the one-off gains on disposal of investments this quarter. The year-over-year increase was mainly due to increase in gross margin and the one-off gains on disposal of investments this quarter.

Consolidated Cash and Financial Assets-Current

Cash and financial assets-current at the end of the quarter was NT$191,991 million. This represents 43.4% of the company’s total assets. Cash and financial assets-current was NT$165,235 million and NT$154,945 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$31,956 million. The accounts receivable turnover was 44 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than the 39 days in the last quarter, and higher than the 31 days in the year-ago quarter.

Consolidated Inventory

Net inventory was NT$36,875 million at the end of the quarter. The inventory turnover was 86 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was lower than the 89 days in the last quarter, and lower than the 93 days in the year-ago quarter.

Consolidated Cash Flow from Operations                        

Net cash provided by operating activities during the quarter was NT$9,202 million, compared with net cash used in operating activities of NT$1,663 million in the prior quarter, and net cash used in operating activities of NT$1,156 million in the year-ago quarter.

Please refer to the link for financial tables.

Earnings Webcast

MediaTek will hold a public webcast today (July 31). 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  4:00 – 5:00 p.m. (Taiwan Time)  

http://wms.gridow.com/ir/mediatek/tw/mediatek_2018Q2_tw.html

In English    5:30 – 6:30 p.m. (Taiwan Time)

http://wms.gridow.com/ir/mediatek/en/mediatek_2018Q2_en.html

Dial-in Number: +886-2-21928016   

Password: 515385#

 

About MediaTek Inc.

MediaTek Incorporated (TWSE: 2454) is a global fabless semiconductor company that enables 1.5 billion connected devices a year. We are a market leader in developing innovative systems-on-chip (SoC) for mobile device, home entertainment, connectivity and IoT products. Our dedication to innovation has positioned us as a driving market force in several key technology areas, including highly power-efficient mobile technologies and advanced multimedia solutions across a broad range of products such as smartphones, tablets, digital televisions, OTT boxes, wearables and automotive solutions. MediaTek empowers and inspires people to expand their horizons and more easily achieve their goals through smart technology. We call this idea Everyday Genius and it drives everything we do. Visit www.mediatek.com for more information.