2012 Q4 Financial Results

MediaTek Inc. Reports Fourth Quarter 2012 and Full Year 2012 Consolidated Results 

Consolidated Revenue:

MediaTek Inc. today announced financial results of fourth-quarter ended December 31, 2012. Fourth quarter revenue was NT$26,737 million, down 9.3% sequentially primarily due to low seasonality and weak global economy, and up 18.1% on a year-over-year basis, which was primarily driven by the smartphone demand.

Annual revenue totaled NT$99,263 million.

Consolidated Gross Profit and Gross Margin:

The fourth-quarter gross profit was NT$11,098 million, down 8.7% sequentially, and up 11.0% year-over-year. MediaTek's gross margin for the quarter was 41.5%, up 0.3 percentage points from the previous quarter, and down 2.7% percentage points from the same period last year, which was mainly due to price competition.

Gross profit of the year amounted to NT$41,062 million (gross margin: 41.4%).

Consolidated Operating Expenses (including employee profit sharing expenses):

Operating expenses for the quarter was NT$7,552 million (28.2% of revenue), compared with NT$7,909 million (26.8% of revenue) in the previous quarter, and NT$7,626 million (33.7% of revenue) in the same period last year. Operating expenses for the quarter included:

Full-year 2012 operating expense was NT$28,557 million (28.8% of revenue).

Consolidated Operating Profit and Operating Margin:  Operating profit for the quarter was NT$3,546 million, down 16.4% sequentially, and up 49.7% year-over-year. Operating margin for the quarter was 13.3%, decreased from 14.4% in the previous quarter, and increased from 10.5% in the year-ago quarter.

Operating profit of the year was NT$12,505 million (operating margin: 12.6%).

Consolidated Non-operating Income (loss) and Income Tax:

Non-operating income of NT$1,465 million, or 5.5% of revenue, was mainly from interest income and investment income (including MStar investment income of approximately NT$500 million). Income tax expense for the quarter was NT$139 million.

Net non-operating income of the year amounted to NT$4,114 million.

Consolidated Net Income and EPS:

Net income was NT$4,889 million, a decrease of 1.1% from the prior quarter, and an increase of 67.5% from the year-ago quarter, respectively. EPS was NT$3.70, compared with NT$4.06 in the prior quarter and NT$2.54 in the year-ago quarter.

Full year 2012 net income was NT$15,688 million. Accumulated EPS was NT$12.90 for the year.

Consolidated Cash and Financial Assets-Current:

Cash and financial assets-current at the end of the quarter was NT$90,276 million. This represents 42.9% of the company’s total assets. Cash and financial assets-current was NT$91,177 million and NT$91,032 million at the end of previous quarter and the year-ago quarter, respectively. Financial assets-current portfolio includes mutual funds, bonds, and derivatives.

Consolidated Accounts Receivable:

Accounts receivable (net) at the end of the quarter was NT$ 6,585 million. The accounts receivable turnover was 25 days based on quarterly average net receivables divided by annualized net revenue. The turnover was same as 25 days last quarter, and lower than 32 days in the year-ago quarter.

Consolidated Inventory:

Net inventory was NT$13,867 million at the end of the quarter. The inventory turnover was 76 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 61 days in the last quarter, and 60 days in the year-ago quarter.

Consolidated Cash Flow from Operations:

Cash flow from operations during the quarter was NT$2,647 million, down from NT$4,221 million in the prior quarter and NT$9,323 million in the year-ago quarter, respectively.

Earnings Webcast

MediaTek will hold a public webcast today (February 4th) at 2:00 p.m. Taipei Time in Mandarin, and at 4:00 p.m. in English. 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:

Time

2:00 – 3:00 p.m. (Taiwan Time): In Mandarin

(http://www.mzcan.com/cancast/taiwan/index.php?id=tw2454_56&version=e)

4:00 – 5:00 p.m. (Taiwan Time): In English

(http://www.mzcan.com/cancast/taiwan/index.php?id=tw2454_57&version=e)

Dial-in Number: +852 3027 5500 (Password: 898604#)

About MediaTek Inc.

MediaTek Inc. is a leading fabless semiconductor company for wireless communications and digital multimedia solutions. The company is a market leader and pioneer in cutting-edge SOC system solutions for wireless communications, high-definition TV, optical storage, and DVD and Blu-ray products. Founded in 1997 and listed on Taiwan Stock Exchange under the code "2454", MediaTek is headquartered in Taiwan and has sales or research subsidiaries in Mainland China, Singapore, India, U.S., Japan, Korea, Denmark, England, Sweden and Dubai. For more information, please visit MediaTek’s website at www.mediatek.com

MediaTek Inc.

Q4 FY12 Consolidated Income Statement

(In NT$ millions, except per share amounts)

4Q12

3Q12

4Q11

Q-Q

Y-Y

Net Revenue

26,737

29,471

22,633

(9.3 %)

18.1%

Cost of Goods Sold

(15,639)

(17,320)

(12,639)

Gross Profit

11,098

12,151

9,994

(8.7 %)

11.0%

Selling expenses

(856)

(910)

(985)

Administration expenses

(823)

(750)

(814)

R&D expenses

(5,874)

(6,249)

(5,827)

Operating Expenses

(7,552)

(7,909)

(7,626)

Operating Income

3,546

4,242

2,368

(16.4 %)

49.7%

Net Non-operating Income

1,465

877

746

Income Before Income Tax

5,011

5,119

3,114

Income tax expense

(139)

(188)

(198)

Consolidated Net Income

4,872

4,931

2,917

(1.2 %)

67.0%

Net Loss (Income) Attributable to Minority Interests

17

10

1

Consolidated Net Income Attributable to the Parent

4,889

4,941

2,918

(1.1 %)

67.5%

EPS Attributable to the Parent(NT$)

3.70

4.06

2.54

Note: Numbers do not add up due to rounding.

Q4 FY12 Supplemental Information: Percentage of Revenue 

4Q12

3Q12

4Q11

Gross profit

41.5%

41.2%

44.2%

R&D expenses

(22.0 %)

(21.2 %)

(25.7 %)

Selling expenses

(3.2 %)

(3.1 %)

(4.4 %)

Administration expenses

(3.1 %)

(2.5 %)

(3.6 %)

Operating profit

13.3%

14.4%

10.5%

Non-operating income

5.5%

3.0%

3.3%

Income tax expense

(0.5 %)

(0.6 %)

(0.9 %)

Net profit

18.3%

16.8%

12.9%

Note: Numbers do not add up due to rounding.

MediaTek Inc.

FY12 Consolidated Income Statement

(In NT$ millions, except per share amounts)

2012

2011

Y-Y

Net Revenue

99,263

86,857

14.3%

Cost of Goods Sold

(58,201)

(47,513)

Gross Profit

41,062

39,344

4.4%

Selling expenses

(3,109)

(2,861)

Administration expenses

(3,064)

(2,955)

R&D expenses

(22,384)

(21,184)

Operating Expenses

(28,557)

(26,999)

Operating Income

12,505

12,345

1.3%

Net Non-operating Income

4,114

1,859

Income Before Income Tax

16,620

14,203

Income tax expense

(971)

(587)

Consolidated Net Income

15,648

13,616

14.9%

Net Loss (Income) Attributable to Minority Interests

39

7

Consolidated Net Income Attributable to the Parent

15,688

13,623

15.2%

EPS Attributable to the Parent(NT$)

12.90

12.35

Note: Numbers do not add up due to rounding.

FY12 Supplement Information: Percentage of Revenue 

2012

2011

Gross profit

41.4%

45.3%

R&D expense

(22.6 %)

(24.4 %)

Selling expenses

(3.1 %)

(3.3 %)

Administration expenses

(3.1 %)

(3.4 %)

Operating profit

12.6%

14.2%

Non-operating income

4.1%

2.1%

Income tax expense

(1.0 %)

(0.7 %)

Net profit

15.8%

15.7%

Note: Numbers do not add up due to rounding.

MediaTek Inc.

Consolidated Balance Sheet

(In NT$ millions)

4Q12

3Q12

4Q11

Cash & Financial assets-current

90,276

91,177

91,032

Accounts receivable

6,585

8,216

7,384

Inventories

13,867

12,091

9,392

Funds and investments

65,120

65,822

9,417

Intangible assets

15,842

16,248

16,151

Total assets

210,243

211,242

147,741

Short-term loans

8,880

10,504

4,089

Accounts payable

9,047

12,054

9,022

Other current liabilities

14,946

14,328

17,317

Long-term liabilities & Other liabilities

1,595

1,505

985

Stockholders’ equity

175,774

172,850

116,328

MediaTek Inc.

Consolidated Cash Flow Summary

(In NT$ millions)

4Q12

3Q12

4Q11

Cash flow from operations

2,647

4,221

9,323

Cash flow from investing

14

(1,339)

2,130

Cash flow from financing

(1,720)

(11,869)

1,657

Effect of exchange rate changes

(220)

(928)

(254)

Net increase in cash & equivalents

721

(9,915)

12,856

Cash & equivalents at quarter end

85,867

85,146

85,821

Note: Numbers do not add up due to rounding.