MediaTek's gross margin continued to slide in the second quarter of 2016 reaching a record-low 35.2%.

MediaTek announced consolidated revenues of NT$72.53 billion (US$2.29 billion) for the second quarter of 2016, up 29.7% sequentially and 54.2% on year. The company credited the positive performance to rising chip demand for smartphones and recognition of revenues from acquired companies such as Richtek Technology.

MediaTek's revenues for second-quarter 2016 were a record high, despite the continued fall in gross margin.

MediaTek's gross margin for the second quarter of 2016 was down 2.9pp on quarter and 10.7pp from a year earlier, due mainly to a change in the company's product mix and intense competition in the smartphone-SoC market.

MediaTek generated net profits of NT$6.59 billion in the second quarter of 2016, up 47.3% on quarter and 3.3% on year. EPS for the quarter reached NT$4.16 compared with NT$2.79 in the prior quarter and NT$4.06 a year ago.

MediaTek's net profits for the first half of 2016 totaled NT$11.06 billion, down about 19% on year. EPS for the six-month period came to NT$6.95.

MediaTek also disclosed that inventory turnover came to 59 days at the end of the second quarter, down from 67 days a quarter earlier and 111 days during the same period in 2015.