IC Design Division Mediatek Branch Morningstar's Third Quarter Revenue Increases by 11.3%

The design giant MediaTek and Morningstar recently announced their September revenue. MediaTek’s shipments of mobile device chipsets for the ARM platform had some gains. The third quarter revenue was 11.3% higher than the previous quarter, which was better than expected. The chip foundry partners UMC also dipped in light. Morningstar reported a revenue of 3.49 billion yuan in September, which is a new monthly revenue.

MediaTek’s September revenue was 7.826 billion yuan, a slight decrease of 4.6% from August. It was the second highest monthly revenue this year. The cumulative total revenue for the third quarter was 23.375 billion yuan, an increase of 11.4% over the quarter.

As MediaTek's smart phone chip customers, including Continental Lenovo, have reached double-digit customer base, MediaTek estimates that this year's total shipments should be able to successfully achieve the original target of 10 million sets.

Kelly Securities semiconductor analyst Liu Haomin said MediaTek’s 2G mobile phone chip orders last month were the main contributors to UMC's September revenue decline less than expected. CLSA estimates that MediaTek’s combined revenue for the fourth quarter will increase by 1% in the quarter, but If you deduct Rayling revenue, the separate MediaTek revenue will be reduced by 7% quarterly, the annual earnings per share of about 13.49 yuan.

Deutsche Securities pointed out in a research report yesterday that MediaTek’s operations have already bottomed out. However, investors cannot overoptimize the stock price performance until the annual shipment exceeds 30 million units.