Jan 27, 2021 - 3:40 PM

MediaTek Inc. Reports Fourth-Quarter and Full-Year 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

-4Q20 consolidated revenue of NT$96,405 million, down 0.9% from previous quarter and up 49.0% year-over-year

-4Q20 consolidated gross margin of 44.5%, up 0.3 percentage points from previous quarter and up 2 percentage points year-over-year

-4Q20 consolidated operating income of NT$15,373 million, up 5.1% from previous quarter and up 146.9% year-over-year

-4Q20 consolidated net income of NT$14,957 million; EPS of NT$9.35

-2020 consolidated revenue of NT$322,146 million, up 30.8% year-over-year, reached record-high annual consolidated revenue

-2020 Gross margin of 43.9%, up 2 percentage points year-over-year;consolidated operating income of NT$43,219 million, up 91.5% year-over-year; EPS of NT$26.01

Consolidated Revenue

MediaTek Inc. today announced financial results of fourth-quarter and full-year ended December 31, 2020. The fourth-quarter revenue was NT$96,405 million, down 0.9% sequentially and up 49.0% year-over-year. The slight quarter-over-quarter decrease was mainly due to unfavorable foreign exchange rate. The year-over-year increase was mainly due to 4G and 5G smartphone market share gains, and sales increases in consumer electronics such as Wi-Fi, Power IC and TV.

Annual revenue totaled NT$322,146 million, up 30.8% year-over-year.

Consolidated Gross Profit and Gross Margin

The fourth-quarter gross profit was NT$42,863 million, down 0.4% sequentially and up 55.9% year-over-year. Gross margin for the quarter was 44.5%, up 0.3 percentage points sequentially and up 2 percentage points year-over-year. The quarter-over-quarter and year-over-year increases in gross margins were mainly due to favorable product mix.

Gross profit for the year was NT$141,536 million (gross margin: 43.9%), up 37.4% year-over-year.

Consolidated Operating Expenses

Operating expenses for the quarter was NT$27,491 million (28.5% of revenue), compared with NT$28,400 million (29.2% of revenue) in the previous quarter and NT$21,266 million (32.9% of revenue) in the same period last year. The quarter-over-quarter decrease was mainly due to higher R&D and administration expenses in the previous quarter. The year-over-year increase was mainly due to increases in R&D investments and higher expenses associated with higher sales.

Operating expenses for the quarter included:

- R&D expenses of NT$22,025 million (22.8% of revenue), decreased from NT$22,547 million in the previous quarter and increased from NT$16,397 million in the same period last year.

- Selling expenses of NT$3,713 million (3.9% of revenue), increased from NT$3,648 million in the previous quarter and increased from NT$3,197 million in the same period last year.

- Administration expenses of NT$1,753 million (1.8% of revenue), decreased from NT$2,205 million in the previous quarter and increased from NT$1,672 million in the same period last year.

Full-year 2020 operating expense was NT$98,316 million (30.5% of revenue), increased 22.2% year-over-year.

Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$15,373 million, up 5.1% sequentially and up 146.9% year-over-year. Operating margin for the quarter was 15.9%, increased from 15.0% in the previous quarter and increased from 9.6% in the year-ago quarter.

Operating income for the year was NT$43,219 million (operating margin: 13.4%), up 91.5% year-over-year.

Consolidated Non-operating Income (loss) and Income Tax

Non-operating income for the quarter was NT$1,519 million, or 1.6% of revenue. It was mainly from interest income and dividend income. Income tax expense for the quarter was NT$1,934 million.

Non-operating income for the year was NT$4,363 million, compared with NT$4,460 million last year.

Consolidated Net Income, Net Profit Margin and EPS

Net income for the quarter was NT$14,957 million, up 11.9% sequentially and up 134.3% year-over-year. Net profit margin for the quarter was 15.5%, increased from 13.7% in the previous quarter and increased from 9.9% in the year-ago quarter. EPS was NT$9.35, up from NT$8.42 in the prior quarter and NT$4.03 in the year-ago quarter. The quarter-over-quarter increase in net income, net profit margin and EPS was mainly due to higher gross margin and lower operating expenses this quarter. The year-over-year increase in net income, net profit margin and EPS was mainly due to higher revenue and gross margin this quarter.

Full-year 2020 net income was NT$41,439 million, up 78.6% year-over-year. Accumulated EPS was NT$26.01 for the year, compared with NT$14.69 last year.

Consolidated Cash and Financial Assets-Current

Cash and financial assets-current at the end of the quarter was NT$210,113 million. This represents 39.4% of the company's total assets. Cash and financial assets-current was NT$184,310 million and NT$203,174 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$33,133 million. The accounts receivable turnover was 34 days based on quarterly average net receivables divided by annualized net revenue. The turnover was lower than 35 days in the last quarter and 40 days in the year-ago quarter.

Consolidated Inventory

Net inventory at the end of the quarter was NT$37,677 million. The inventory turnover was 59 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 57 days in the last quarter and lower than 72 days in the year-ago quarter.

Consolidated Cash Flow from Operations

Net cash provided by operating activities during the quarter was NT$38,611 million, compared with net cash provided by operating activities of NT$31,839 million in the prior quarter and net cash provided by operating activities of NT$19,588 million in the year-ago quarter.

Earnings Webcast

MediaTek will hold a public webcast today (January 27). 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:

Wednesday, January 27, 2021

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

http://wms.gridow.com/ir/mediatek/en/mediatek_2020Q4_en.html

Dial-in Number: +886-2-21928016

Password: 309705#

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 27 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2021 13:27:06 UTC