2021 Q4 Financial Results
MediaTek Inc. Reports Fourth-Quarter and Full-Year 2021 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
-4Q21 consolidated revenue of NT$128,654 million, down 1.8% from previous quarter and up 33.5% year-over-year
-4Q21 consolidated gross margin of 49.6%, up 2.9 percentage points from previous quarter and up 5.1 percentage points year-over-year
-4Q21 consolidated operating income of NT$29,721 million, up 1.5% from previous quarter and up 93.3% year-over-year
-4Q21 consolidated net income of NT$30,148 million; EPS of NT$18.99
-2021 consolidated revenue of NT$493,415 million, up 53.2% year-over-year, reaching record high
-2021 consolidated gross margin of 46.9%, up 3 percentage points year-over-year; consolidated operating income of NT$108,040 million, up 150% year-over-year; EPS of NT$70.56, reaching record high
Consolidated Revenue
MediaTek Inc. today announced financial results of fourth-quarter ended December 31, 2021. The fourth-quarter revenue was NT$128,654 million, down 1.8% sequentially and up 33.5% year-over-year. The slight quarter-over-quarter decrease was mainly due to smartphone product mix changes. The year-over-year increase was mainly benefitted from product specifications upgrade or higher demand across major products.
Annual revenue totaled NT$493,415 million, up 53.2% year-over-year.
Consolidated Gross Profit and Gross Margin
The fourth-quarter gross profit was NT$63,830 million, up 4.3% sequentially and up 48.9% year-over-year. Gross margin for the quarter was 49.6%, up 2.9 percentage points sequentially and up 5.1 percentage points year-over-year. The quarter-over-quarter and year-over-year increases in gross margins were mainly due to better product mix.
Gross profit for the year was NT$231,605 million (gross margin: 46.9%), up 63.6% year-over-year.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$34,109 million (26.5% of revenue), compared with NT$31,929 million (24.4% of revenue) in the previous quarter and NT$27,491 million (28.5% 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.
Operating expenses for the quarter included:
- R&D expenses of NT$26,411 million (20.5% of revenue), increased from NT$24,364 million in the previous quarter and increased from NT$22,025 million in the same period last year.
- Selling expenses of NT$4,843 million (3.8% of revenue), decreased from NT$5,076 million in the previous quarter and increased from NT$3,713 million in the same period last year.
- Administration expenses of NT$2,855 million (2.2% of revenue), increased from NT$2,489 million in the previous quarter and increased from NT$1,753 million in the same period last year.
Full-year 2021 operating expense was NT$123,564 million (25.0% of revenue), increased 25.7% year-over-year.
Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$29,721 million, up 1.5% sequentially and up 93.3% year-over-year. Operating margin for the quarter was 23.1%, increased from 22.3% in the previous quarter and increased from 15.9% in the year-ago quarter.
Operating income for the year was NT$108,040 million (operating margin: 21.9%), up 150% year-over-year.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$4,278 million, or 3.3% of revenue. It was mainly from interest income and dividend income. Income tax expense for the quarter was NT$3,852 million.
Non-operating income for the year was NT$18,812 million, compared with NT$4,363 million last year.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$30,148 million, up 6.3% sequentially and up 101.6% year-over-year. Net profit margin for the quarter was 23.4%, increased from 21.6% in the previous quarter and increased from 15.5% in the year-ago quarter. EPS was NT$18.99, up from NT$17.92 in the prior quarter and NT$9.35 in the year-ago quarter. The quarter-over-quarter increases in net income, net profit margin and EPS were mainly due to higher gross margin 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 2021 net income was NT$111,873 million, up 170% year-over-year. Accumulated EPS was NT$70.56 for the year, compared with NT$26.01 last year.
Consolidated Cash and Financial Assets-Current
Cash and financial assets-current at the end of the quarter was NT204,764million. This represents 31% of the company’s total assets. Cash and financial assets-current was NT$187,344 million and NT$210,113 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$58,660 million. The accounts receivable turnover was 41 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher 36 days in the last quarter and 34 days in the year-ago quarter.
Consolidated Inventory
Net inventory at the end of the quarter was NT$73,271 million. The inventory turnover was 100 days based on quarterly average inventory divided by annualized cost of goods sold, compare with 86 days in the last quarter and 59 days in the year-ago quarter. The higher turnover was mainly due to longer lead-time for advanced nodes.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$24,737 million, compared with net cash used in operating activities of NT$4,323 million in the prior quarter and net cash provided by operating activities of NT$38,611 million in the year-ago quarter.
Please refer to the link for financial tables.
Earnings Webcast
MediaTek will hold a public webcast today (January 27). 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:
Thursday, January 27, 2022
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: 331261#
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.