2019 Q4 Financial 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
-4Q19 consolidated revenue of NT$64,708 million, down 3.7% from previous quarter and up 6.3% year over year
-4Q19 consolidated gross margin of 42.5%, up 0.4 percentage points from previous quarter and up 3.6 percentage points year over year
-4Q19 consolidated operating income of NT$6,226 million, down 11.4% from previous quarter and up 61.7% year over year
-4Q19 consolidated net income of NT$6,383 million; EPS of NT$4.03
-2019 consolidated revenue of NT$246,222 million; Gross margin of 41.9%, up 3.4 percentage points year-over-year
-2019 consolidated operating income of NT$22,567 million, up 39.5% year-over-year; EPS of NT$14.69
Consolidated Revenue
MediaTek Inc. today announced financial results of fourth-quarter ended December 31, 2019. The fourth-quarter revenue was NT$64,708 million, down 3.7% sequentially and up 6.3% year-over-year. The quarter-over-quarter decrease was mainly due to lower seasonal demand for consumer electronics. The year-over-year increase was mainly due to higher demand for smartphone and some consumer electronics.
Annual revenue totaled NT$246,222 million, up 3.4% year-over-year.
Consolidated Gross Profit and Gross Margin
The fourth-quarter gross profit was NT$27,492 million, down 2.8% sequentially and up 16% year-over-year. Gross margin for the quarter was 42.5%, up 0.4 percentage points sequentially and up 3.6 percentage points year-over-year. The quarter-over-quarter and year-over-year increases were mainly due to favorable product mix.
Gross profit of the year amounted to NT$103,046 million (gross margin: 41.9%), up 12.3% year-over-year.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$21,266 million (32.9% of revenue), compared with NT$21,261 million (31.6% of revenue) in the previous quarter and NT$19,851 million (32.6% of revenue) in the same period last year. Operating expenses was flat quarter-over-quarter. The year-over-year increase was mainly due to higher R&D investments and expenses associated with higher sales.
Operating expenses for the quarter included:
- R&D expenses of NT$16,397 million (25.3% of revenue), decreased from NT$16,590 million in the previous quarter and increased from NT$15,070 million in the same period last year.
- Selling expenses of NT$3,197 million (4.9% of revenue), increased from NT$3,024 million in the previous quarter and decreased from NT$3,222 million in the same period last year.
- Administration expenses of NT$1,672 million (2.6% of revenue), increased from NT$1,647 million in the previous quarter and increased from NT$1,559 million in the same period last year.
Full-year 2019 operating expense was NT$80,478 million (32.7% of revenue), increased 6.5% year-over-year.
Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$6,226 million, down 11.4% sequentially and up 61.7% year-over-year. Operating margin for the quarter was 9.6%, decreased from 10.5% in the previous quarter and increased from 6.3% in the year-ago quarter.
Operating income of the year was NT$22,567 million (operating margin: 9.2%), up 39.5% year-over-year.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$829 million, or 1.3% of revenue. It was mainly from interest income and dividend income. Income tax expense for the quarter was NT$672 million.
Non-operating income of the year amounted to NT$4,460 million, compared with NT$7,509 million last year.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$6,383 million, down 7.5% sequentially and up 56.6% year-over-year. Net profit margin for the quarter was 9.9%, decreased from 10.3% in the previous quarter and increased from 6.7% in the year-ago quarter. EPS was NT$4.03, compared with NT$4.38 in the prior quarter and NT$2.63 in the year-ago quarter. The quarter-over-quarter decreases in net income, net profit margin and EPS were mainly due to lower quarterly sales this quarter. The year-over-year increases in net income, net profit margin and EPS were mainly due to higher revenue and gross margin this quarter.
Full year 2019 net income was NT$23,204 million, up 11.7% year-over-year. Accumulated EPS was NT$14.69 for the year, compared with NT$13.26 last year.
Consolidated Cash and Financial Assets-Current
Cash and financial assets-current at the end of the quarter was NT$203,174 million. This represents 44.3% of the company’s total assets. Cash and financial assets-current was NT$205,786 million and NT$164,671 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$26,837 million. The accounts receivable turnover was 40 days based on quarterly average net receivables divided by annualized net revenue. The turnover was same as 40 days in the last quarter and lower than 46 days in the year-ago quarter.
Consolidated Inventory
Net inventory was NT$27,615 million at the end of the quarter. The inventory turnover was 72 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was lower than 73 days in the last quarter and 85 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$19,588 million, compared with net cash provided by operating activities of NT$7,192 million in the prior quarter and net cash provided by operating activities of NT$8,703 million in the year-ago quarter.
Please refer to the link for financial tables.
Earnings Webcast
MediaTek will hold a public webcast today (February 7). Starting from this year, MediaTek will only hold one result conference call each quarter in English for information consistency. 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:
Friday, February 7, 2020
Time: 4:00 – 5:00 p.m. (Taiwan Time) Language: English
http://wms.gridow.com/ir/mediatek/en/mediatek_2019Q4_en.html
Dial-in Number: +886-2-21928016
Password: 388413#
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.