It said that it would make $404.7 million which sounds impressive but is actually the lowest the company has made for 12 months. However it was a lot better than last February, which means the outfit can open the champers.

Analysts have given the company’s stock a thumbs up, saying that they believed the company was on track meet its guidance of $1.6 billion – 1.75 billion in the first quarter of this year.

Word on the street is that MediaTek’s second quarter revenues will see a sequential quarter-on-quarter increase of between 10 to 20 percent in Q2, 2016.

It has been a slightly trying time for MediaTek. TSMC, the company whose foundry MediaTek uses to manufacture its mobile chipsets, was hit by an earthquake. This stuffed up production and damaged wafers. It looks like the damage was not that bad and it was able to catch up quite quickly.

MediaTek is seeing growing competition in the mobile processor market and seen its gross margins erode to less than 40 percent in the final quarter of last year. Fortunately rising demand for newer handsets in China is expected to offset some of the ill effects of the reduction in margin.

Some of the recent spurt in demand is being fuelled in large part by the heavy subsidies that are being offered by the carriers in the country.

MediaTek will launch new P20 chips built on TSMC’s 16nm FinFET Plus technology in the second half of this year, in addition to the Helio P10 and X20 series SoCs that were unveiled recently by the company.

The Helio P20 is a mid-range chipset with an octa-core CPU and the X20 is a top-tier SoC with a deca-core CPU architecture with three custers with two times four Cortex-A53 cores and two Cortex-A72 cores.