MediaTek has revealed its net profit fell 16.2% consecutively to a four-quarter low of NT$3.42 billion (US$110,5 million) in Q1 2019, but its gross margin climbed 2.3pp on year and 1.8pp on quarter to 40.7%. The company also disclosed that a favourable product mix is largely responsible for the improved gross margin.
The chipmaker announced that consolidated revenues for the first quarter of 2019 stood at NT$52.72 billion, down 13.4% sequentially but up 6.2% when compared to that of last year. The company’s operating profit of NT$3.17 billion was also down 17.7% quarter-on-quarter but up 64.3% year-on-year. According to the firm’s CEO Rick Tsai, mobile SoCs including chip solutions for cell phones and tablets represented 30-35% of MediaTek’s incomes in the quarter. He also disclosed that the company’s mobile SoC shipments are expected to register a twofold digit successive increment in the second quarter, fueled by offers of MediaTek’s chip solutions for IoT, power management IC and ASIC items. The Helio P70 chips will also see more shipments in Q2. Also, phones powered by the new MediaTek Helio P90 will also hit in the second quarter.
Read Also: MediaTek 7nm 5G chipset in works, will be a step ahead than Helio P90
In addition, MediaTek hopes to post incomes of between NT$59.6 billion and NT$64.8 billion in the second quarter of 2019, up 13-21% successively, with gross margin extending from 39% to 42%. Tsai says the company is likewise on track to reveal its 5G SoC series before the end of 2019 and prepared its mmWave solutions in 2020.
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