2020 Q1 Financial Results

Apr 28, 2020 - 3:40 PM

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

-1Q20 consolidated revenue of NT$60,863 million, down 5.9% from previous quarter and up 15.4% year over year

-1Q20 consolidated gross margin of 43.1%, up 0.6 percentage points from previous quarter and up 2.4 percentage points year over year

-1Q20 consolidated operating income of NT$5,802 million, down 6.8% from previous quarter and up 83.1% year over year

-1Q20 consolidated net income of NT$5,804 million; EPS of NT$3.64

 

Consolidated Revenue

MediaTek Inc. today announced financial results of first-quarter ended March 31, 2020. The first-quarter revenue was NT$60,863 million, down 5.9% sequentially and up 15.4% 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 smartphone market share gain.    

 

Consolidated Gross Profit and Gross Margin

The first-quarter gross profit was NT$26,237 million, down 4.6% sequentially and up 22.2% year-over-year. Gross margin for the quarter was 43.1%, up 0.6 percentage points sequentially and up 2.4 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$20,435 million (33.6% of revenue), compared with NT$21,266 million (32.9% of revenue) in the previous quarter and NT$18,304 million (34.7% of revenue) in the same period last year. The quarter-over-quarter decrease was mainly due to higher R&D related year-end reimbursement in the previous quarter. The year-over-year increase was mainly due higher expenses associated with higher sales and R&D investments.

Operating expenses for the quarter included:

- R&D expenses of NT$15,336 million (25.2% of revenue), decreased from NT$16,397 million in the previous quarter and increased from NT$14,607 million in the same period last year.

- Selling expenses of NT$3,556 million (5.8% of revenue), increased from NT$3,197 million in the previous quarter and increased from NT$2,143 million in the same period last year.

- Administration expenses of NT$1,542 million (2.5% of revenue), decreased from NT$1,672 million in the previous quarter and decreased from NT$1,555 million in the same period last year.

 

Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$5,802 million, down 6.8% sequentially and up 83.1% year-over-year. Operating margin for the quarter was 9.5%, decreased from 9.6% in the previous quarter and increased from 6.0% in the year-ago quarter.

 

Consolidated Non-operating Income (loss) and Income Tax

Non-operating income for the quarter was NT$928 million, or 1.5% of revenue. It was mainly from interest income and dividend income. Income tax expense for the quarter was NT$926 million.

 

Consolidated Net Income, Net Profit Margin and EPS

Net income for the quarter was NT$5,804 million, down 9.1% sequentially and up 69.9% year-over-year. Net profit margin for the quarter was 9.5%, decreased from 9.9% in the previous quarter and increased from 6.5% in the year-ago quarter. EPS was NT$3.64, compared with NT$4.03 in the prior quarter and NT$2.17 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.

 

Consolidated Cash and Financial Assets-Current

Cash and financial assets-current at the end of the quarter was NT$198,570 million. This represents 42.4% of the company’s total assets. Cash and financial assets-current was NT$203,174 million and NT$187,586 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$25,376 million. The accounts receivable turnover was 39 days based on quarterly average net receivables divided by annualized net revenue. The turnover was lower than 40 days in the last quarter and 47 days in the year-ago quarter.

 

Consolidated Inventory

Net inventory was NT$32,669 million at the end of the quarter. The inventory turnover was 79 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 72 days in the last quarter and lower than 89 days in the year-ago quarter.

 

Consolidated Cash Flow from Operations

Net cash provided by operating activities during the quarter was NT$1,931 million, compared with net cash provided by operating activities of NT$19,588 million in the prior quarter and net cash provided by operating activities of NT$1,691 million in the year-ago quarter.

                                                                                            

Please refer to the link for financial tables. 

Earnings Webcast

MediaTek will hold a public webcast today (April 28). 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:

Tuesday, April 28, 2020

Time: 4:00 – 5:00 p.m. (Taiwan Time) Language: English

http://wms.gridow.com/ir/mediatek/en/mediatek_2020Q1_en.html

 

Dial-in Number: +886-2-21928016   

Password: 343889#

 

 

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.