Published in Mobiles

MediaTek sees profit slide

by on02 May 2019

Down 16.2 percent

MediaTek has reported net profit fell 16.2 percent sequentially to a four quarter low of $110.5 million.

Gross margin climbed 2.3 percentage points and 1.8 percent on quarter to 40.7 percent .

The outfit generated operating profit of $102.576 million in the first quarter, down 17.7 percent  on quarter but up 64.3 percent  on the year.

MediaTek said its inventory turnover was 89 days at the end of first-quarter 2019, up from 85 days a quarter earlier but flat from year ago levels.

MediaTek expects to post revenues of between $1.9 billion and $2.09 billion in the second quarter of 2019, up 13-21 percent  sequentially, with gross margin ranging from 39 percent  to 42 percent .

The outfit’s CEO Rick Tsai said Mobile SoCs including chip solutions for smartphones and tablets accounted for 30-35 percent  of MediaTek's revenues in the first quarter.

Tsai  added that MediaTek will see its mobile SoC shipments register a double-digit sequential increase in the second quarter.

Shipments of MediaTek's Helio P70 chips will expand further in the second quarter while mobile devices powered by the new MediaTek Helio P90 chip will hit market shelves in the second quarter.

MediaTek is on track to roll out its 5G SoC series by the end of 2019, and ready its mmWave solutions in 2020, Tsai said.

Meanwhile, sales of MediaTek's chip solutions for IoT, power management IC and ASIC products will also see a double-digit sequential growth in the second quarter, according to Tsai. The segment accounted for 30-35 percent of MediaTek's total revenues in the first quarter.

Last modified on 02 May 2019
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