2018 Q4 Financial Results

MediaTek Inc. Reports Fourth Quarter 2018 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

  • 4Q18 consolidated revenue of NT$60,892 million, down 9.2% from previous quarter
  • 4Q18 consolidated gross margin of 38.9%, up 0.4 percentage points from previous quarter
  • 4Q18 consolidated operating income of NT$3,851 million, down 39.0% from previous quarter
  • 4Q18 consolidated net income of NT$3,752 million; EPS of NT$2.42
  • 2018 consolidated revenue of NT$238,057 million; Gross margin of 38.5%, up 2.9 percentage points year-over-year
  • 2018 consolidated operating income of NT$16,182 million, up 64.8% year-over-year; EPS of NT$13.26

 

Consolidated Revenue

MediaTek Inc. today announced financial results of fourth-quarter ended December 31, 2018. The fourth-quarter revenue was NT$60,892 million, down 9.2% sequentially and up 0.8% year-over-year. The quarter-over-quarter decrease was mainly due to seasonal decrease in consumer electronics demand.    

Annual revenue totaled NT$238,057 million, down 0.1% year-over-year.

 

Consolidated Gross Profit and Gross Margin

The fourth-quarter gross profit was NT$23,702 million, down 8.2% sequentially and up 4.9% year-over-year. Gross margin for the quarter was 38.9%, up 0.4 percentage points sequentially and up 1.5 percentage points year-over-year. The quarter-over-quarter and year-over year increases were mainly due to favorable product mix.

Gross profit of the year amounted to NT$91,724 million (gross margin: 38.5%), up 8.1% year-over-year.

 

Consolidated Operating Expenses

Operating expenses for the quarter was NT$19,851 million (32.6% of revenue), compared with NT$19,515 million (29.1% of revenue) in the previous quarter and NT$21,294 million (35.3% of revenue) in the same period last year. The quarter-over-quarter increase was mainly due to higher year-end reimbursements, and year-over-year decrease was mainly due to the operating expenses related to an one-off disposal gain in the same quarter last year which was not recurring this quarter.

Operating expenses for the quarter included: 

  • R&D expenses of NT$15,070 million (24.7% of revenue), increased from NT$14,890 million in the previous quarter and decreased from NT$15,859 million in the same period last year.
  • Selling expenses of NT$3,222 million (5.3% of revenue), increased from NT$2,908 million in the previous quarter and increased from NT$3,050 million in the same period last year.
  • Administration expenses of NT$1,559 million (2.6% of revenue), decreased from NT$1,716 million in the previous quarter and decreased from NT$2,385 million in the same period last year.

Full-year 2018 operating expense was NT$75,541 million (31.7% of revenue), increased 0.6% year-over-year.

 

Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$3,851 million, down 39.0% sequentially and up 198.5% year-over-year. Operating margin for the quarter was 6.3%, decreased from 9.4% in the previous quarter and increased from 2.1% in the year-ago quarter.

Operating income of the year was NT$16,182 million (operating margin: 6.8%), up 64.8% year-over-year.

 

Consolidated Non-operating Income (loss) and Income Tax

Non-operating income for the quarter was NT$319 million, or 0.5% of revenue. It was mainly from interest income and dividend income. Income tax expense for the quarter was NT$418 million.

Non-operating income of the year amounted to NT$7,509 million, compared with NT$17,418 million last year.

 

Consolidated Net Income, Net Profit Margin and EPS

Net income for the quarter was NT$3,752 million, down 45.4% sequentially and down 63.1% year-over-year. Net profit margin for the quarter was 6.2%, decreased from 10.3% in the previous quarter and decreased from 16.8% in the year-ago quarter. EPS was NT$2.42, compared with NT$4.39 in the prior quarter and NT$6.50 in the year-ago quarter. The quarter-over-quarter decreases in net income, net profit margin and EPS were mainly due to lower quarterly sales and higher operating expense this quarter. The year-over-year decreases in net income, net profit margin and EPS were mainly due to the one-off gains on disposal of investments in the same quarter last year which was not recurring in this quarter.

Full year 2018 net income was NT$20,782 million, down 13.7% year-over-year. Accumulated EPS was NT$13.26 for the year, compared with NT$15.56 last year.

 

Consolidated Cash and Financial Assets-Current

Cash and financial assets-current at the end of the quarter was NT$164,671 million. This represents 40.9% of the company’s total assets. Cash and financial assets-current was NT$170,509 million and NT$170,120 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$28,939 million. The accounts receivable turnover was 46 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than 44 days in the last quarter and higher than the 29 days in the year-ago quarter.

 

Consolidated Inventory

Net inventory was NT$30,980 million at the end of the quarter. The inventory turnover was 85 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than the 83 days in the last quarter and higher than the 76 days in the year-ago quarter.

 

Consolidated Cash Flow from Operations                        

Net cash provided by operating activities during the quarter was NT$8,703 million, compared with net cash provided by operating activities of NT$4,100 million in the prior quarter and net cash provided by operating activities of NT$16,739 million in the year-ago quarter.

Please refer to the link for financial tables.


Earnings Webcast

MediaTek will hold a public webcast today (January 30). 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:

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

http://wms.gridow.com/ir/mediatek/tw/mediatek_2018Q4_tw.html

In English    5:30 – 6:30 p.m. (Taiwan Time)

http://wms.gridow.com/ir/mediatek/en/mediatek_2018Q4_en.html


Dial-in Number: +886-2-21928016   

Password: 635313#

 

 

About MediaTek Inc.

MediaTek Incorporated (TWSE: 2454) is a global fabless semiconductor company that enables 1.5 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 and advanced multimedia solutions across a broad range of products such as smartphones, tablets, digital televisions, OTT boxes, wearables and automotive solutions. MediaTek empowers and inspires people to expand their horizons and more easily achieve their goals through smart technology. We call this idea Everyday Genius and it drives everything we do. Visit www.mediatek.com for more information.