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MediaTek Q3 net profit up almost 25% sequentially

MediaTek Q3 net profit up almost 25% sequentially

Taipei, Oct. 30 (CNA) MediaTek Inc. (???), Taiwan's largest integrated circuit designer, said Friday that its net profit in the third quarter was almost 25 percent higher than a quarter earlier because of peak season effects and a weaker Taiwan dollar. The IC designer said efforts to improve its product portfolio by adding more high-end chips also helped improve its bottom line. At an investor conference Friday, MediaTek reported third quarter net profit of NT$7.96 billion (US$243 million), up 24.8 percent from a quarter earlier. The figure was also the highest for any quarter so far this year, but it was 40.2 percent lower than for the same quarter in 2014, according to MediaTek's figures. MediaTek had earnings per share of NT$5.09 in the quarter, up from NT$4.06 in EPS a quarter earlier. MediaTek's third quarter consolidated sales rose 21.1 percent from a quarter earlier to NT$56.96 billion, but price cuts in the global smartphone chip market triggered by escalating competition cut the IC designer's gross margin by 3.2 percentage points quarter-on-quarter to 42.7 percent. Smartphone chips account for about 60 percent of MediaTek's total revenue. MediaTek shipped 110 million to 120 million smartphone chips in the third quarter, with four-core chips accounting for 45-50 percent of total shipments and eight-core chips making up more than 20 percent. In the first nine months of this year, MediaTek's consolidated sales fell 4 percent from a year earlier to NT$151.54 billion, and its net profit plunged 40 percent year-on-year to NT$21.59 billion. The nine-month EPS stood at NT$13.77. At the investor conference, MediaTek Vice Chairman and President Hsieh Ching-jiang (???) said his company expects higher revenues in the fourth quarter because it will start to book sales from Richtek Technology Corp. (????), which it acquired in early October. It also foresees growth from an increase in chip demand from smart home device makers, the company said. MediaTek acquired a 51 percent stake in analog IC designer Richtek after completing a tender offer on Oct. 7. MediaTek is planning to acquire the remaining stake in Richtek by the end of the second quarter of 2016 in a bid to broaden its product portfolio. Hsieh predicted that consolidated sales for the fourth quarter could range between NT$57 billion and NT$60.4 billion. But stiff competition in the smartphone chip market is expected to lower MediaTek's gross margin to 38.5-41.5 percent in the quarter. Hsieh said MediaTek is expected to ship 95 million-105 million smartphone chips in the fourth quarter, which would be enough for the company to achieve its goal of shipping a total of 400 million smartphone chips in 2015. (By Jackson Chang and Frances Huang)


Updated : 2021-09-19 07:55 GMT+08:00