MediaTek expects revenues to decrease up to 6% sequentially in the fourth quarter of 2014 due to seasonal factors, but there is still a possibility of a 2% growth. However, shipments of its smartphone solutions are likely to remain flat on quarter, according to the company.

MediaTek's smartphone IC shipments for the third quarter are estimated at between 90 million and 100 million units. For the fourth quarter, LTE chips will account for a higher 20% of shipments, said president Hsieh Ching-chiang.

MediaTek maintains its forecast that the company will ship 350 million smartphone solutions in 2014, and the target for its 4G smartphone solutions remains the same at 30 million units.

MediaTek's gross margin will be between 47.5% and 49.5% in the fourth quarter compared to 49.1% in the third. Gross margins are put under pressure by increasing price competition, Hsieh noted.

Nevertheless, MediaTek is looking to improve its product mix that will improve gross margins during the second half of 2015, Hsieh said.

MediaTek reported revenues of NT$57.47 billion (US$1.88 billion) for the third quarter of 2014, up 6.2% on quarter. Gross margin, however, slid from 49.6% in the second quarter to 49.1% in the third. The company generated net profits of NT$13.3 billion in the third quarter with EPS coming to NT$8.51.

For the first three quarters of 2014, MediaTek's revenues soared 63.7% from a year ago to NT$157.67 billion. Net profits for the nine-month period rose about 67% on year to NT$36 billion, or NT$23.40 a share.