2023 Q2 Financial Results
MediaTek Inc. Reports Second-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
-2Q23 consolidated revenue of NT$98,135 million, up 2.6% quarter over quarter and down 37% year-over-year
-2Q23 consolidated gross margin of 47.5%, down 0.5 percentage points quarter over quarter and 1.8 percentage points year-over-year
-2Q23 consolidated net income of NT$16,019 million; EPS of NT$10.07
Consolidated Revenue
MediaTek Inc. today announced financial results of second-quarter ended June 30, 2023. The second-quarter revenue was NT$98,135 million, up 2.6% sequentially and down 37% year-over-year. The quarter-over-quarter increase was mainly due to improvements in demand for certain consumer electronics. The year-over-year decrease was mainly due to customers’ inventory adjustments across all product lines caused by weak end demand.
Consolidated Gross Profit and Gross Margin
The second-quarter gross profit was NT$46,646 million, up 1.6% sequentially and down 39.2% year-over-year. Gross margin for the quarter was 47.5%, down 0.5 percentage points from the previous quarter and 1.8 percentage points from the year-ago quarter. The quarter-over-quarter and year-over-year decreases reflected changes in prices and costs of our products.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$31,896 million (32.5% of revenue), compared with NT$31,543 million (33% of revenue) in the previous quarter and NT$37,583 million (24.1% of revenue) in the same period last year. Operating expenses for the quarter were nearly flat compared to the previous quarter. The year-over-year decrease was mainly due to lower employee profit sharing expenses in this quarter.
Operating expenses for the quarter included:
- R&D expenses of NT$26,188 million (26.7% of revenue), decreased from NT$26,483 million in the previous quarter and NT$30,180 million in the year-ago quarter.
- Selling expenses of NT$3,375 million (3.4% of revenue), increased from NT$2,699 million in the previous quarter and decreased from NT$3,636 million in the year-ago quarter.
- Administration expenses of NT$2,333 million (2.4% of revenue), decreased from NT$2,361 million in the previous quarter and NT$3,768 million in the year-ago quarter.
Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$14,751 million, up 2.7% sequentially and down 62.4% year-over-year. Operating margin for the quarter was 15%, the same as the previous quarter and down from 25.2% in the year-ago quarter.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$3,620 million, or 3.7% of revenue, mainly from interest income and dividend income. Income tax expense for the quarter was NT$2,351 million.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$16,019 million, down 5.2% sequentially and 55% year-over-year. Net profit margin for the quarter was 16.3%, decreased from 17.7% in the previous quarter and 22.9% in the year-ago quarter. EPS was NT$10.07, down from NT$10.64 in the prior quarter and NT$22.39 in the year-ago quarter. The quarter-over-quarter decreases in net income, net profit margin and EPS were mainly due to higher non-operating income last 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$192,428 million. This represents 29.1% of the company’s total assets. Cash and financial assets-current was NT$154,710 million and NT$256,547 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$45,639 million. The accounts receivable turnover was 43 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than 42 days in the previous quarter and 37 days in the year-ago quarter.
Consolidated Inventory
Net inventory at the end of the quarter was NT$61,067 million. The inventory turnover was 115 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was lower than 128 days in the previous quarter and higher than 104 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$46,732 million, compared with NT$2,858 million in the previous quarter and NT$35,554 million in the year-ago quarter.
Please refer to the link for financial tables.
Earnings Webcast
MediaTek will hold a public webcast today (July 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, July 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: 9909528#
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.