MediaTek's July Revenue Hits 22-Month High

MediaTek Inc.'s revenue for July hit a 22-month high of NT$9.2 billion (US$308 million at US$1:NT$30), increasing 17.68% from a month earlier, mostly thanks to brisk demand for smartphone chips, its major revenue earner now.

The company estimated its average revenue for August and September to range from NT$8.6 billion (US$286 million) to NT$9.2 billion (US$306 million).

MediaTek's September revenue will include 40-48% of the revenue from MStar Semiconductor Inc., which it acquired recently. The phase-one acquisition will be completed on Aug. 13.

Industry executives estimated the acquisition, if going smoothly as expected, will give a boost to MediaTek's revenue for the third and fourth quarters.

MediaTek recently revised upward its goal for this year's smartphone chip shipment to 95 million sets from the previous forecast of 75 million sets. Behind the revision is the robust demands in mainland China.

In the first seven months, the company had consolidated revenue totaling NT$52.3 billion (US$1.7 billion), increasing 9.04% year on year.

MediaTek executives estimated the company's shipments for the third quarter at over 30 million sets of smpartphone chips, surging 42.8% from the second quarter. Similar shipment goal is also set for the fourth quarter, enabling the company to easily achieve the planned shipment of 95 million sets for this year.

With diligent marketing efforts, MediaTek has gained increased share of the global market for smartphone chips. According to market research organization StrategyAnalytics, MediaTek catapulted into world's top-5 smartphone chip vendor list in the first quarter this year for the first time.

In the first quarter this year, Qualcomm's share of the market dropped to 44% worldwide from 51% it had a year earlier. StrategyAnalytics ascribed Qualcomm's share loss partly to the gain by MediaTek and Broadcom.

MediaTek shipped around 31 million sets of smpartphone chips in the first half this year and is estimated to ship around 64 million in the second half to meet the annual target.

source & copyright: CENS