Jul 31, 2020 - 3:40 PM

MediaTek Inc. Reports Second Quarter 2020 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

-2Q20 consolidated revenue of NT$67,603 million, up 11.1% from previous quarter and up 9.8% year over year

-2Q20 consolidated gross margin of 43.5%, up 0.4 percentage points from previous quarter and up 1.6 percentage points year over year

-2Q20 consolidated operating income of NT$7,416 million, up 27.8% from previous quarter and up 20.7% year over year

-2Q20 consolidated net income of NT$7,310 million; EPS of NT$4.58

Consolidated Revenue

MediaTek Inc. today announced financial results of second-quarter ended June 30, 2020. The second-quarter revenue was NT$67,603 million, up 11.1% sequentially and up 9.8% year-over-year. The quarter-over-quarter increase was mainly due to new 5G smartphone launches and stronger demand from certain consumer electronics such as WiFi and Power management IC. The year-over-year increase was mainly due to sales contribution from 5G smartphone.

Consolidated Gross Profit and Gross Margin

The second-quarter gross profit was NT$29,407 million, up 12.1% sequentially and up 14.0% year-over-year. Gross margin for the quarter was 43.5%, up 0.4 percentage points sequentially and up 1.6 percentage points year-over-year. The quarter-over-quarter and year-over-year increases were mainly due to favorable product mix.

Consolidated Operating Expenses

Operating expenses for the quarter was NT$21,991 million (32.5% of revenue), compared with NT$20,435 million (33.6% of revenue) in the previous quarter and NT$19,647 million (31.9% of revenue) in the same period last year. The quarter-over-quarter and year-over-year increases were mainly due to higher R&D investments.

Operating expenses for the quarter included:

- R&D expenses of NT$17,416 million (25.8% of revenue), increased from NT$15,336 million in the previous quarter and increased from NT$15,407 million in the same period last year.

- Selling expenses of NT$2,730 million (4.0% of revenue), decreased from NT$3,556 million in the previous quarter and increased from NT$2,574 million in the same period last year.

- Administration expenses of NT$1,844 million (2.7% of revenue), increased from NT$1,542 million in the previous quarter and increased from NT$1,665 million in the same period last year.

Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$7,416 million, up 27.8% sequentially and up 20.7% year-over-year. Operating margin for the quarter was 11.0%, increased from 9.5% in the previous quarter and increased from 10.0% in the year-ago quarter.

Consolidated Non-operating Income (loss) and Income Tax

Non-operating income for the quarter was NT$1,113 million, or 1.6% of revenue. It was mainly from interest income and dividend income. Income tax expense for the quarter was NT$1,219 million.

Consolidated Net Income, Net Profit Margin and EPS

Net income for the quarter was NT$7,310 million, up 25.9% sequentially and up 12.4% year-over-year. Net profit margin for the quarter was 10.8%, increased from 9.5% in the previous quarter and increased from 10.6% in the year-ago quarter. EPS was NT$4.58, up from NT$3.64 in the prior quarter and NT$4.11 in the year-ago quarter. The quarter-over-quarter and year-over-year increases in net income, net profit margin and EPS were mainly due to higher revenue and gross margin this quarter.

Consolidated Cash and Financial Assets-Current

Cash and financial assets-current at the end of the quarter was NT$187,158 million. This represents 38.8% of the company's total assets. Cash and financial assets-current was NT$198,570 million and NT$215,522 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$36,101 million. The accounts receivable turnover was 41 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than 39 days in the last quarter and 39 days in the year-ago quarter.

Consolidated Inventory

Net inventory was NT$36,812 million at the end of the quarter. The inventory turnover was 83 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 79 days in the last quarter and higher than 78 days in the year-ago quarter.

Consolidated Cash Flow from Operations

Net cash provided by operating activities during the quarter was NT$7,177 million, compared with net cash provided by operating activities of NT$1,931 million in the prior quarter and net cash provided by operating activities of NT$14,135 million in the year-ago quarter.

Earnings Webcast

MediaTek will hold a public webcast today (July 31). 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.

Please refer to the link for financial tables.

Schedule and Webcast Links:

Friday, July 31, 2020

Time: 4:00 - 5:00 p.m. (Taiwan Time) Language: English

http://wms.gridow.com/ir/mediatek/en/mediatek_2020Q2_en.html

Dial-in Number: +886-2-21928016

Password: 395559#

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.comfor more information.

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Mediatek Inc. published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2020 03:46:03 UTC