2019 Q2 Financial Results
Taiwan-International Financial Reporting Standards (TIFRS) financial measures
-2Q19 consolidated revenue of NT$61,567 million, up 16.8% from previous quarter and up 1.8% year over year
-2Q19 consolidated gross margin of 41.9%, up 1.2 percentage points from previous quarter and up 3.7 percentage points year over year
-2Q19 consolidated operating income of NT$6,143 million, up 93.9% from previous quarter and up 50.1% year over year
-2Q19 consolidated net income of NT$6,503 million; EPS of NT$4.11
Consolidated Revenue
MediaTek Inc. today announced financial results of second-quarter ended June 30, 2019. The second-quarter revenue was NT$61,567 million, up 16.8% sequentially and up 1.8% year-over-year. The quarter-over-quarter increase was mainly due to increased seasonal demand for consumer electronics. The year-over-year increase was mainly due to higher sales from consumer electronics, such as IoT, ASIC, and PMIC.
Consolidated Gross Profit and Gross Margin
The second-quarter gross profit was NT$25,790 million, up 20.1% sequentially and up 11.6% year-over-year. Gross margin for the quarter was 41.9%, up 1.2 percentage points sequentially and up 3.7 percentage points year-over-year. The quarter-over-quarter and year-over-year increases were mainly due to favorable product mix.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$19,647 million (31.9% of revenue), compared with NT$18,304 million (34.7% of revenue) in the previous quarter and NT$19,020 million (31.4% of revenue) in the same period last year. The quarter-over-quarter and year-over-year increases were mainly due to higher R&D investments.
Operating expenses for the quarter included:
- R&D expenses of NT$15,407 million (25.0% of revenue), increased from NT$14,607 million in the previous quarter and increased from NT$14,272 million in the same period last year.
- Selling expenses of NT$2,574 million (4.2% of revenue), increased from NT$2,143 million in the previous quarter and decreased from NT$2,934 million in the same period last year.
- Administration expenses of NT$1,665 million (2.7% of revenue), increased from NT$1,555 million in the previous quarter and decreased from NT$1,814 million in the same period last year.
Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$6,143 million, up 93.9% sequentially and up 50.1% year-over-year. Operating margin for the quarter was 10.0%, increased from 6.0% in the previous quarter and increased from 6.8% in the year-ago quarter.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$1,877 million, or 3.0% of revenue. It was mainly from interest income and gains on disposal of investments. Income tax expense for the quarter was NT$1,518 million.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$6,503 million, up 90.4% sequentially and down 12.6% year-over-year. Net profit margin for the quarter was 10.6%, increased from 6.5% in the previous quarter and decreased from 12.3% in the year-ago quarter. EPS was NT$4.11, compared with NT$2.17 in the prior quarter and NT$4.72 in the year-ago quarter. The quarter-over-quarter increases in net income, net profit margin and EPS were mainly due to higher quarterly sales and gross margin improvement this quarter. The year-over-year decreases in net income, net profit margin and EPS were mainly due to lower 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$215,522 million. This represents 47.7% of the company’s total assets. Cash and financial assets-current was NT$187,586 million and NT$191,991 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$27,915 million. The accounts receivable turnover was 39 days based on quarterly average net receivables divided by annualized net revenue. The turnover was lower than 47 days in the last quarter and 44 days in the year-ago quarter.
Consolidated Inventory
Net inventory was NT$31,096 million at the end of the quarter. The inventory turnover was 78 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was lower than 89 days in the last quarter and 86 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$14,135 million, compared with net cash provided by operating activities of NT$1,691 million in the prior quarter and net cash provided by operating activities of NT$9,202 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_2019Q2_tw.html
In English 5:30 – 6:30 p.m. (Taiwan Time)
http://wms.gridow.com/ir/mediatek/en/mediatek_2019Q2_en.html
Dial-in Number: +886-2-21928016
Password: 950653#
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.