2021 Q3 Financial Results

Oct 26, 2021 - 2:40 PM

MediaTek Inc. Reports Third-Quarter 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

-3Q21 consolidated revenue of NT$131,074 million, up 4.3% from previous quarter and up 34.7% year-over-year

-3Q21 consolidated gross margin of 46.7%, up 0.5 percentage points from previous quarter and up 2.5 percentage points year-over-year

-3Q21 consolidated operating income of NT$29,287 million, up 1.6% from previous quarter and up 100.2% year-over-year

-3Q21 consolidated net income of NT$28,361 million; EPS of NT$17.92

 

Consolidated Revenue

MediaTek Inc. today announced financial results of third-quarter ended September 30, 2021. The third-quarter revenue was NT$131,074 million, up 4.3% sequentially and up 34.7% year-over-year. The higher quarter-over-quarter and year-over-year revenues were mainly benefited from migrations to higher product specifications or higher demand for all major product lines.

 

Consolidated Gross Profit and Gross Margin

The third-quarter gross profit was NT$61,216 million, up 5.5% sequentially and up 42.3% year-over-year. Gross margin for the quarter was 46.7%, up 0.5 percentage points sequentially and up 2.5 percentage points year-over-year. The quarter-over-quarter and year-over-year increases in gross margins were mainly due to better product mix.

 

Consolidated Operating Expenses

Operating expenses for the quarter was NT$31,929 million (24.4% of revenue), compared with NT$29,204 million (23.2% of revenue) in the previous quarter and NT$28,400 million (29.2% of revenue) in the same period last year. The quarter-over-quarter and year-over-year increases were mainly due to increases in R&D investments and higher expenses associated with product sales.

Operating expenses for the quarter included:

- R&D expenses of NT$24,364 million (18.6% of revenue), increased from NT$22,879 million in the previous quarter and increased from NT$ 22,547 million in the same period last year.

- Selling expenses of NT$5,076 million (3.9% of revenue), increased from NT$3,890 million in the previous quarter and increased from NT$3,648 million in the same period last year.

- Administration expenses of NT$2,489 million (1.9% of revenue), increased from NT$2,435 million in the previous quarter and increased from NT$2,205 million in the same period last year.

 

Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$29,287 million, up 1.6% sequentially and up 100.2% year-over-year. Operating margin for the quarter was 22.3%, decreased from 22.9% in the previous quarter and increased from 15.0% in the year-ago quarter.

 

Consolidated Non-operating Income (loss) and Income Tax

Non-operating income for the quarter was NT$2,903 million, or 2.2% of revenue. It was mainly from interest income and dividend income. Income tax expense for the quarter was NT$3,829 million.

 

Consolidated Net Income, Net Profit Margin and EPS

Net income for the quarter was NT$28,361 million, up 2.8% sequentially and up 112.2% year-over-year. Net profit margin for the quarter was 21.6%, decreased from 22.0% in the previous quarter and increased from 13.7% in the year-ago quarter. EPS was NT$17.92, up from NT$17.44 in the prior quarter and NT$8.42 in the year-ago quarter. The quarter-over-quarter increases in net income and EPS were mainly due to higher revenue and gross margin this quarter. The lower net profit margin compared with last quarter was mainly due to higher operating expenses this quarter. The year-over-year increases in net income, net profit margin and EPS were mainly because higher revenue and gross margin fully offset the increase in operating expenses this quarter.

 

Consolidated Cash and Financial Assets-Current

Cash and financial assets-current at the end of the quarter was NT$187,344 million. This represents 30.8% of the company’s total assets. Cash and financial assets-current was NT$238,281 million and NT$184,310 million at the end of previous quarter and the year-ago quarter, respectively. Financial assets-current portfolio includes mutual funds, bonds, derivatives and so on.

 

Consolidated Accounts Receivable

Accounts receivable (net) at the end of the quarter was NT$55,717 million. The accounts receivable turnover was 36 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher 34 days in the last quarter and 35 days in the year-ago quarter.

 

Consolidated Inventory

Net inventory at the end of the quarter was NT$68,793 million. The inventory turnover was 86 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 81 days in the last quarter and 57 days in the year-ago quarter.

 

Consolidated Cash Flow from Operations

Net cash used in operating activities during the quarter was NT$4,323 million, compared with net cash provided by operating activities of NT$28,131 million in the prior quarter and net cash provided by operating activities of NT$31,839 million in the year-ago quarter.

Earnings Webcast

MediaTek will hold a public webcast today (October 26). 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.

 

Please refer to the link for financial tables. 


Schedule and Webcast Links:

Tuesday, October 26, 2021

Time: 3:00 – 4:00 p.m. (Taiwan Time) Language: English

https://webpage-ott2b.cdn.hinet.net/webpage/live?contentProvider=mediatek

 

Dial-in Number: +886-2-21928016   

Password: 727286#

 

About MediaTek Inc. MediaTek Incorporated (TWSE: 2454) is a global fabless semiconductor company that enables nearly 2 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, automotive solutions and a broad range of advanced multimedia products such as smartphones, tablets, digital televisions, 5G, Voice Assistant Devices (VAD) and wearables. MediaTek empowers and inspires people to expand their horizons and achieve their goals through smart technology, more easily and efficiently than ever before. We work with the brands you love to make great technology accessible to everyone, and it drives everything we do. Visit www.mediatek.com for more information.