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Taiwan-based IC design house MediaTek, which specializes in mobile SoC solutions, saw its gross margin reach a record low of 33.5% in the first quarter of 2017.
MediaTek’s gross margin for first-quarter 2017 represented declines of 1pp sequentially and 4.6pp on year. The company posted consolidated revenues of NT$56.08 billion (US$1.86 billion) in the first quarter, down 18.3% on quarter and 0.3% compared to the same period in 2016.
MediaTek generated operating profits of NT$1.21 billion in the first quarter of 2017, down 69.6% sequentially and 72.5% on year, while operating margin fell 3.6pp on quarter and 5.7pp from a year earlier to 2.2%.
MediaTek saw its net profits climb 29.2% sequentially and 48.4% on year to NT$6.64 billion in the first quarter of 2017, thanks mainly to recognized gains from the sale of its China-based subsidiary AutoChips. EPS for the quarter came to NT$4.29.
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