Apr 28, 2023 - 2:30 PM

MediaTek Inc. Reports First-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

-1Q23 consolidated revenue of NT$95,652 million, down 11.6% quarter over quarter and 33% year-over-year

-1Q23 consolidated gross margin of 48%, down 0.3 percentage points quarter over quarter and  2.3 percentage points year-over-year

-1Q23 consolidated net income of NT$16,890 million; EPS of NT$10.64

 

Consolidated Revenue

MediaTek Inc. today announced financial results of first-quarter ended March 31, 2023. The first-quarter revenue was NT$95,652 million, down 11.6% sequentially and 33% year-over-year, mainly due to customers’ inventory adjustments.

 

Consolidated Gross Profit and Gross Margin

The first-quarter gross profit was NT$45,912 million, down 12.1% sequentially and 36% year-over-year. Gross margin for the quarter was 48%, down 0.3 percentage points from the previous quarter and 2.3 percentage points from the year-ago quarter. The year-over-year decrease reflected changes in prices and costs of certain products.

 

Consolidated Operating Expenses

Operating expenses for the quarter was NT$31,543 million (33% of revenue), compared with NT$34,175 million (31.6% of revenue) in the previous quarter and NT$35,316 million (24.7% of revenue) in the same period last year. The quarter-over-quarter and year-over-year decreases were mainly due to lower employee profit sharing expenses.

Operating expenses for the quarter included:

- R&D expenses of NT$26,483 million (27.7% of revenue), decreased from NT$28,047 million in the previous quarter and decreased from NT$28,541 million in the year-ago quarter.

- Selling expenses of NT$2,699 million (2.8% of revenue), decreased from NT$3,666 million in the previous quarter and decreased from NT$3,409 million in the year-ago quarter.

- Administration expenses of NT$2,361 million (2.5% of revenue), decreased from NT$2,462 million in the previous quarter and decreased from NT$3,365 million in the year-ago quarter.

 

Consolidated Operating Income and Operating Margin 

Operating income for the quarter was NT$14,369 million, down 20.6% sequentially and 60.6% year-over-year. Operating margin for the quarter was 15%, decreased from 16.7% in the previous quarter and from 25.6% in the year-ago quarter.

 

Consolidated Non-operating Income (loss) and Income Tax

Non-operating income for the quarter was NT$4,735 million, or 5% of revenue, mainly from interest income, and dividend income. Income tax expense for the quarter was NT$2,213 million.

 

Consolidated Net Income, Net Profit Margin and EPS

Net income for the quarter was NT$16,890 million, down 8.8% sequentially and 49.4% year-over-year. Net profit margin for the quarter was 17.7%, increased from 17.1% in the previous quarter and decreased from 23.4% in the year-ago quarter. EPS was NT$10.64, down from NT$11.66 in the prior quarter and down from NT$21.02 in the year-ago quarter. The quarter-over-quarter decreases in net income and EPS were mainly due to lower revenue in the quarter. The year-over-year decreases in net income, net profit margin and EPS were mainly due to lower revenue and gross margin in this quarter.

 

Consolidated Cash and Financial Assets-Current

Cash and financial assets-current at the end of the quarter was NT$154,710 million. This represents 25.3% of the company’s total assets. Cash and financial assets-current was NT$164,810 million and NT$249,894 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$46,311 million. The accounts receivable turnover was 42 days based on quarterly average net receivables divided by annualized net revenue. The turnover was lower than 45 days in the previous quarter and higher than 39 days in the year-ago quarter.

 

Consolidated Inventory

Net inventory at the end of the quarter was NT$69,265 million. The inventory turnover was 128 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 126 days in the previous quarter and 105 days in the year-ago quarter.

 

Consolidated Cash Flow from Operations

Net cash provided by operating activities during the quarter was NT$2,858 million, compared with NT$59,034 million in the previous quarter and NT$30,735 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). 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, April 28, 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: 9203028#

 

 

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.