MediaTek reported a significant revenue increase for the final month of the quarter, driving second quarter results past the upper limit of its financial guidance. According to the corporate financial release monthly revenue reached NT$58.012 billion representing a 22.3% increase compared to the previous month and a 2.8% growth compared to the same period in the prior year. This late quarterly surge pushed cumulative second quarter consolidated revenue to NT$152.183 billion.
This second quarter performance represents a 2.03% increase quarter on quarter and a 1.21% increase year on year. The final revenue figures comfortably exceeded the initial financial forecast provided by MediaTek which projected quarterly revenue to fall between NT$140.2 billion and NT$149.2 billion based on an exchange rate of NT$31.5 per US dollar. The company had originally anticipated flat revenue or a decline up to 6% compared to the first quarter. For the first half of the fiscal period accumulated consolidated revenue reached NT$301.333 billion representing a minor decrease of 0.77% compared to the NT$303.681 billion recorded during the same period in the prior year.
Management previously noted during an investor conference that growth in the Smart Edge platform business would partially offset weaker demand in the mobile phone chip division. The Smart Edge division benefited from increased market share in connectivity computing and automotive products. While mobile phone customers remained cautious with orders due to limited market visibility the overall product mix performed better than the conservative estimates issued during the previous investor conference. Financial analysts suggest that the higher revenue indicates stronger shipments of flagship and mid to high range mobile chips than originally anticipated.
MediaTek expects further recovery in its mobile business during the latter half of the fiscal period. The launch of its next generation flagship mobile chip utilizing a 2 nanometer manufacturing process is scheduled for late in the third quarter. Furthermore the company projects full year revenue in US dollars to increase by a mid to high single digit percentage. New revenue streams are also expected to begin in the fourth quarter as data center artificial intelligence ASIC projects commence and contribute to the corporate balance sheet.
