2022 Q4 Financial Results
MediaTek Inc. Reports Fourth-Quarter and Full-Year 2022 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
-4Q22 consolidated revenue of NT$108,194 million, down 23.9% quarter over quarter and down 15.9% year-over-year
-4Q22 consolidated gross margin of 48.3%, down 1 percentage point quarter over quarter and down 1.3 percentage points year-over-year
-2022 consolidated revenue grew 11.2% year-over-year to NT$548,796 million with EPS of NT$74.59, both reaching record highs
Consolidated Revenue
MediaTek Inc. today announced financial results of fourth-quarter ended December 31, 2022. The fourth-quarter revenue was NT$108,194 million, down 23.9% sequentially and down 15.9% year-over-year due to customers’ inventory adjustments.
Full year 2022 revenue totaled NT$548,796 million, up 11.2% from 2021.
Consolidated Gross Profit and Gross Margin
The fourth-quarter gross profit was NT$52,261 million, down 25.4% sequentially and down 18.1% year-over-year. Gross margin for the quarter was 48.3%, down 1 percentage point from the previous quarter and down 1.3 percentage points year-over-year due to product mix changes.
Full year 2022 gross profit was NT$270,904 million, up 17.0% year-over-year. Gross margin for 2022 was 49.4%, up 2.5 percentage points year-over-year.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$34,175 million (31.6% of revenue), compared with NT$37,041 million (26.1% of revenue) in the previous quarter. The quarter-over-quarter decrease was mainly due to less expenses recognized based on shipments and profits in this quarter. Operating expenses for the same period in 2021 was NT$34,109 million (26.5% of revenue), flat year-over-year.
Operating expenses for the quarter included:
- R&D expenses of NT$28,047 million (25.9% of revenue), decreased from NT$30,106 million in the previous quarter and increased from NT$26,411 million in the year-ago quarter.
- Selling expenses of NT$3,666 million (3.4% of revenue), increased from NT$3,530 million in the previous quarter and decreased from NT$4,843 million in the year-ago quarter.
- Administration expenses of NT$2,462 million (2.3% of revenue), decreased from NT$3,406 million in the previous quarter and decreased from NT$2,855 million in the year-ago quarter.
Full year 2022 operating expenses was NT$144,116 million (26.3% of revenue), increased 16.6% year-over-year.
Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$18,086 million, down 45.3% sequentially and down 39.1% year-over-year. Operating margin for the quarter was 16.7%, decreased from 23.3% in the previous quarter and decreased from 23.1% in the year-ago quarter.
Full year 2022 operating income was NT$126,788 million (operating margin: 23.1%), up 17.4% year-over-year.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$2,971 million, or 2.7% of revenue, mainly from interest income and dividend income. Income tax expense for the quarter was NT$2,543 million.
Full year 2022 non-operating income was NT$8,773 million, lower than NT$18,812 million in 2021. The decrease was mainly due to a one-time gain on disposal of shares in 2021.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$18,514 million, down 40.4% sequentially and down 38.6% year-over-year. Net profit margin for the quarter was 17.1%, decreased from 21.9% in the previous quarter and decreased from 23.4% in the year-ago quarter. EPS was NT$11.66, down from NT$19.54 in the prior quarter and down from NT$18.99 in the year-ago quarter. The quarter-over-quarter and the year-over-year decreases in net income, net profit margin and EPS were mainly due to lower revenue in the quarter.
Full year 2022 net income was NT$118,625 million, up 6.0% year-over-year. Accumulated EPS was NT$74.59 for the year, compared with NT$70.56 in 2021.
Consolidated Cash and Financial Assets-Current
Cash and financial assets-current at the end of the quarter was NT164,810 million. This represents 27.1% of the company’s total assets. Cash and financial assets-current was NT$ 159,193 million and NT$204,764 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$40,842 million. The accounts receivable turnover was 45 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than 41 days in the previous quarter and higher than 41 days in the year-ago quarter.
Consolidated Inventory
Net inventory at the end of the quarter was NT$70,703 million. The inventory turnover was 126 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 111 days in the previous quarter and higher than 100 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$59,034 million, compared with net cash provided by operating activities of NT$19,259 million in the previous quarter and net cash provided by operating activities of NT$24,737 million in the year-ago quarter.
Please refer to the link for financial tables.
Earnings Webcast
MediaTek will hold a public webcast today (February 3). Materials for the conference call will be published 30 minutes prior to the call and an audio replay will be available in one hour after the call at the investors section of MediaTek’s website.
https://corp.mediatek.com/investor-relations/financial-information/quarterly-earnings
Schedule:
Date: Friday, February 3, 2023
Time: 3:00 – 4:00 p.m. (Taiwan Time)
Language: English
Webcast Links:
https://webpage-ott2b.cdn.hinet.net/webpage/live?contentProvider=mediatek
Investors who want to raise questions may use the toll number below.
Dial-in Number: +852-21121444 / +886-2-33961191
Password: 9406003#
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.