2023 Q3 Financial Results
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
-3Q23 consolidated revenue of NT$110,098 million, up 12.2% quarter over quarter and down 22.6% year-over-year
-3Q23 consolidated gross margin of 47.4%, down 0.1 percentage points quarter over quarter and 1.9 percentage points year-over-year
-3Q23 consolidated net income of NT$18,569 million; EPS of NT$11.64
Consolidated Revenue
MediaTek Inc. today announced financial results of third-quarter ended September 30, 2023. The third-quarter revenue was NT$110,098 million, up 12.2% sequentially and down 22.6% year-over-year. The quarter-over-quarter increase was mainly due to certain customers restocking. The year-over-year decrease was mainly due to end demand weakness.
Consolidated Gross Profit and Gross Margin
The third-quarter gross profit was NT$52,192 million, up 11.9% sequentially and down 25.5% year-over-year. Gross margin for the quarter was 47.4%, down 0.1 percentage points from the previous quarter and 1.9 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$34,248 million (31.1% of revenue), compared with NT$31,896 million (32.5% of revenue) in the previous quarter and NT$37,041 million (26.1% of revenue) in the same period last year. The quarter-over-quarter increase was mainly due to higher R&D expenses in this 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$28,242 million (25.7% of revenue), increased from NT$26,188 million in the previous quarter and decreased from NT$30,106 million in the year-ago quarter.
- Selling expenses of NT$3,745 million (3.4% of revenue), increased from NT$3,375 million in the previous quarter and NT$3,530 million in the year-ago quarter.
- Administration expenses of NT$2,261 million (2.1% of revenue), decreased from NT$2,333 million in the previous quarter and NT$3,406 million in the year-ago quarter.
Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$17,944 million, up 21.7% sequentially and down 45.7% year-over-year. Operating margin for the quarter was 16.3%, up from 15% in the previous quarter and down from 23.3% in the year-ago quarter.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$3,048 million, or 2.8% of revenue, mainly from interest income and dividend income. Income tax expense for the quarter was NT$2,424 million.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$18,569 million, up 15.9% sequentially and down 40.3% year-over-year. Net profit margin for the quarter was 16.9%, increased from 16.3% in the previous quarter and decreased from 21.9% in the year-ago quarter. EPS was NT$11.64, up from NT$10.07 in the prior quarter and down from NT$19.54 in the year-ago quarter. The quarter-over-quarter increases in net income, net profit margin and EPS were mainly due to higher revenue in this 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$119,324 million. This represents 19.3% of the company’s total assets. Cash and financial assets-current was NT$192,428 million and NT$159,193 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$61,154 million. The accounts receivable turnover was 44 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than 43 days in the previous quarter and 41 days in the year-ago quarter.
Consolidated Inventory
Net inventory at the end of the quarter was NT$53,391 million. The inventory turnover was 90 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was lower than 115 days in the previous quarter and 111 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$14,966 million, compared with NT$46,732 million in the previous quarter and NT$19,259 million in the year-ago quarter.
Please refer to the link for financial tables.
Earnings Webcast
MediaTek will hold a public webcast today (October 27). 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, October 27, 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: 9904027#
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.