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MediaTek profit down sharply as sales slow

2016-02-01 08:51:00| Telecompaper Headlines

(Telecompaper) MediaTek reported fourth-quarter revenues of TWD 61.71 billion, up 8.3 percent sequentially and 11.3 percent higher year-over-year. The increase was mainly due to the takeover of Richtek and a better mix of products for high-end consumer electronics, the company said. Annual revenue was flat at TWD 213.26 billion in 2015. MediaTek's gross margin fell to 38.5 percent in Q4, down 4.2 percentage points sequentially and 9.4 points lower year-over-year due to the tough competition and slowing sales in the smartphone market. Net profit fell 59.8 percent from a year earlier to TWD 2.18 billion, and EPS dropped to TWD 2.83 from TWD 6.65 in the year-ago quarter. MediaTek still increased operating cash flow strongly in the period, to TWD 18.16 billion from TWD 10.40 billion in Q4 2014. 

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