MediaTek Q2 profit sinks 67%

MARGIN IMPROVEMENT:While earnings fell to a 16-year low, the IC designer saw its gross margin pick up for the first time in three years as it focuses on mid-range chips

Taipei Times
Date: Aug 01, 2017
By: Lisa Wang / Staff reporter

MediaTek Inc (聯發科) yesterday posted its weakest quarterly profit in 16 years as demand for its smartphone chips faltered due to customer inventory correction and market share loss.

Second-quarter net earnings plunged 66.5 percent to NT$2.2 billion (US$72.78 million) from NT$6.59 billion a year ago and 66.7 percent from NT$6.64 billion in the first quarter, the company said.

However, the smartphone chip designer saw its gross margin rebound for the first time in three years, with the figure rising to 35 percent from 33.5 percent in the first quarter.

MediaTek has shifted its focus and resources to mid-range smartphone chips after suffering a setback in its foray into the high-end chip segment, dominated by the US-based Qualcomm Inc.    [FULL  STORY]

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