2022 Q3 Financial Results

Oct 28, 2022 - 2:30 PM

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

-3Q22 consolidated revenue of NT$142,161 million, down 8.7% from previous quarter and up 8.5% year-over-year

-3Q22 consolidated gross margin of 49.3%, the same as the previous quarter and up 2.6 percentage points year-over-year

-3Q22 consolidated operating income of NT$33,054 million, down 15.6% from previous quarter and up 12.9% year-over-year

-3Q22 consolidated net income of NT$31,085 million; EPS of NT$19.54

Consolidated Revenue

MediaTek Inc. today announced financial results of third-quarter ended September 30, 2022. The third-quarter revenue was NT$142,161 million, down 8.7% sequentially and up 8.5% year-over-year. The quarter-over-quarter decrease was mainly due to customers' inventory adjustments. The year-over-year increase was mainly due to product specifications upgrade across major products.

Consolidated Gross Profit and Gross Margin

The third-quarter gross profit was NT$70,095 million, down 8.7% sequentially and up 14.5% year-over-year. Gross margin for the quarter was 49.3%, the same as the previous quarter and up 2.6 percentage points year-over-year due to product mix changes.

Consolidated Operating Expenses

Operating expenses for the quarter was NT$37,041 million (26.1% of revenue), compared with NT$37,583 million (24.1% of revenue) in the previous quarter and NT$31,929 million (24.4% of revenue) in the same period last year. The quarter-over-quarter decrease was mainly due to lower administration expenses in this quarter. The year-over-year increase was mainly due to increases in R&D investments.

Operating expenses for the quarter included:

- R&D expenses of NT$30,106 million (21.2% of revenue), decreased from NT$30,180 million in the previous quarter and increased from NT$24,364 million in the same period last year.

- Selling expenses of NT$3,530 million (2.5% of revenue), decreased from NT$3,636 million in the previous quarter and decreased from NT$5,076 million in the same period last year.

- Administration expenses of NT$3,406 million (2.4% of revenue), decreased from NT$3,768 million in the previous quarter and increased from NT$2,489 million in the same period last year.

Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$33,054 million, down 15.6% sequentially and up 12.9% year-over-year. Operating margin for the quarter was 23.3%, decreased from 25.2% in the previous quarter and increased from 22.3% in the year-ago quarter.

Consolidated Non-operating Income (loss) and Income Tax

Non-operating income for the quarter was NT$2,542 million, or 1.8% of revenue. It was mainly from interest income, dividend income and foreign exchange gains. Income tax expense for the quarter was NT$4,511 million.

Consolidated Net Income, Net Profit Margin and EPS

Net income for the quarter was NT$31,085 million, down 12.7% sequentially and up 9.6% year-over-year. Net profit margin for the quarter was 21.9%, decreased from 22.9% in the previous quarter and increased from 21.6% in the year-ago quarter. EPS was NT$19.54, down from NT$22.39 in the prior quarter and up from NT$17.92 in the year-ago quarter. The quarter-over-quarter decreases in net income, net profit margin and EPS were mainly due to lower revenue in this quarter. The year-over-year increases in net income, net profit margin and EPS were mainly due to higher 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 NT159,193 million. This represents 24.9% of the company's total assets. Cash and financial assets-current was NT$ 256,547 million and NT$187,344 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$65,913 million. The accounts receivable turnover was 41 days based on quarterly average net receivables divided by annualized net revenue. The turnover was higher than 37 days in the last quarter and higher than 36 days in the year-ago quarter.

Consolidated Inventory

Net inventory at the end of the quarter was NT$83,438 million. The inventory turnover was 111 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 104 days in the last quarter and higher than 86 days in the year-ago quarter.

Consolidated Cash Flow from Operations

Net cash provided by operating activities during the quarter was NT$19,259 million, compared with net cash provided by operating activities of NT$35,554 million in the prior quarter and net cash used in operating activities of NT$4,323 million in the year-ago quarter.

Please refer to the link for financial tables.

Earnings Webcast

MediaTek will hold a public webcast today (October 28). 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:

Friday, October 28, 2022

Time: 3:00 - 4:00 p.m. (Taiwan Time) Language: English

https://webpage-ott2b.cdn.hinet.net/webpage/live?contentProvider=mediatek

Dial-in Number: +886-2-21928016

Password: 339215#

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.

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