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Parade Technologies Reports First Quarter 2023 Financial Results

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Financial Highlights:

  • Q123 consolidated revenue US$99.99 million, compared with US$210.72 million in the year-ago quarter
  • Q123 consolidated net income US$11.62 million; Basic and Fully diluted after-tax EPS US$0.15 (NT$4.51) and US$0.15 (NT$4.46), respectively

SAN JOSE, Calif.--(BUSINESS WIRE)--Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the first quarter fiscal year 2023 ended March 31, 2023, and provided guidance for the second quarter of fiscal year 2023.

Consolidated revenue was US$99.99 million and consolidated net income was US$11.62 million. Basic and fully diluted after-tax earnings per share (�EPS�) were US$0.15 (NT$4.51) and US$0.15 (NT$4.46), respectively. These results compared to consolidated revenue US$210.72 million and consolidated net income of US$59.19 million, or US$0.75 (NT$20.91) and US$0.73 (NT$20.55) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the first quarter of 2023 consolidated revenue decreased 1.44% sequentially and was down 52.55% year-over-year.

The gross profit in the first quarter of 2023 was US$44.04 million, representing a decrease of 1.42% from the previous quarter and a decrease of 56.30% compared to the same quarter of last year.

On February 22, 2023, Parade announced a new offering in its high-speed connectivity product category. The PS5510 which is an updated version of the FL5500 USB hub controller featuring ultra-low power operation and hardware-accelerated secure firmware updates. PS5510 is compliant with the USB 3.2 specification and offers 5 SuperSpeed+ ports (1 up/4 down), each capable of providing 10Gbps data connectivity. The upstream port and 2 downstream ports support the features required for USB-C connections while all of the ports may be used for legacy USB Type-A connections. One additional USB 2.0-only port is provided for an additional hard-wired device, often needed in the target applications. With its ultra-low power operation and on-chip RSA/SHA-256 hardware to support secure in-field firmware upgrades, PS5510 is ideal for port expansion on USB4 and Thunderbolt� docking solutions as well as monitors and mini-docks/dongles.

On March 22, 2023, Parade announced a new offering in its eDP Timing Controller with Embedded Driver (TED) product category. The TC3230 features support for higher resolutions as well as the most advanced Embedded DisplayPort features for power savings. TC3230 is compliant with the eDP 1.5 standard and supports Multi-SST Operation (MSO), Panel Self-Refresh, DSC 1.2a, ALPM, and more. The TC3220 is configurable to support all panel resolutions up to 2560�1600 using an 18 or 24-bit color format. Adding a second TC3230, in MSO+DSC mode, enables panel resolutions up to 3840�2160. With support for the standard based embedded video interface protocols offered by major CPU, GPU and SoC vendors, system implementation is straight-forward. The integrated source drivers support up to 2562 output channels with support for dual-gate and MUX2/MUX3 sub-pixel driving structures. The TC3230 is designed for Chip on Glass (COG) application on LTPS (Low Temperature Polycrystalline Silicon), a-Si (Amorphous Silicon) or Oxide type TFT panels. It requires no external crystal or timing reference, includes a programmable gamma buffer, as well as Parade�s exclusive Smart-Backlight� feature for additional color and power optimization. The fully programmable row and column driver timing enables the TC3230 to serve a broad range of panels types, and it provides synchronization signals that support a wide range of touch controllers.

On March 29, 2023, Parade announced the availability of the PS8838 USB 3.2 / DP 2.1 MUX and PS8839 USB 3.2 / DP 2.1 DeMUX for commercial and consumer PCs, host systems and peripherals. PS8838 features a DisplayPort 2.1 and USB 3.2 Gen 2�1 MUX with retiming, targeting USB-C host systems and docks. PS8839 is a DeMUX/Retimer device optimized for sink applications including docks and peripherals. The PS8838 and PS8839 are fully compliant with USB-IF USB 3.2 specification supporting up to Gen 2�1 or 10Gbps and VESA DP 2.1 standard up to UHBR20. The devices support low power consumption for standby and low power states, greatly extending the battery life of mobile devices and enabling system EnergyStar compliance.

Based on current business outlook, Parade is providing the following guidance for the second quarter of fiscal 2023:

  • Revenue: US$98 ~110 Million
  • Gross Margin: 43% ~47%
  • Operating Expense: US$29.5 ~32.5 Million

The financial figures detailed above for the first quarter of 2023 have been reviewed by independent accountants.

About Parade Technologies, Ltd.

Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (�TPEx�) in 2011 (stock code: 4966). Parade�s portfolio of IC products serves the growing demand for HDMI�, DisplayPort�, SATA, and USB ICs for display, storage and interface applications.

In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA�s DisplayPort� digital video interface standard.

Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company�s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company�s �standards-plus� design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.

Parade Technologies, Ltd. and Subsidiaries.

The reader is advised that these consolidated financial statements have been prepared originally in NT$ and conformed with the adoption of IFRSs. In the event of any differences between NT$ and US$ version, the NT$ version shall prevail.

UNAUDITED CONSOLIDATED INCOME STATEMENTS
 USD in Thousands NTD in Thousands
Sequential Quarter Three Months ended Sequential Quarter Three Months ended
Mar 31, Dec 31, Mar 31, Mar 31, Mar 31, Dec 31, Mar 31, Mar 31,

2023

2022

2023

2022

2023

2022

2023

2022
�
Revenue

�

99,990

�

�

101,450

�

99,990

�

�

210,723

�

�

3,039,712

�

�

3,181,446

�

3,039,712

�

�

5,898,143

�
Cost of goods sold

�

55,947

�

�

56,774

�

55,947

�

�

109,948

�

�

1,700,797

�

�

1,780,425

�

1,700,797

�

�

3,077,451

�
Gross profit

�

44,043

�

�

44,676

�

44,043

�

�

100,775

�

�

1,338,915

�

�

1,401,021

�

1,338,915

�

�

2,820,692

�
Research & development expenses

�

19,892

�

�

20,074

�

19,892

�

�

21,226

�

�

604,717

�

�

629,511

�

604,717

�

�

594,124

�
Sales & marketing expenses

�

7,198

�

�

6,469

�

7,198

�

�

8,214

�

�

218,822

�

�

202,857

�

218,822

�

�

229,911

�
General & administrative expenses

�

4,993

�

�

4,114

�

4,993

�

�

6,449

�

�

151,797

�

�

129,023

�

151,797

�

�

180,508

�
Expected credit loss

�

(84

)

�

-

�

(84

)

�

-

�

�

(2,549

)

�

-

�

(2,549

)

�

-

�
Total operating expenses

�

32,167

�

�

30,657

�

32,167

�

�

35,889

�

�

977,885

�

�

961,391

�

977,885

�

�

1,004,543

�
Operating income

�

11,876

�

�

14,019

�

11,876

�

�

64,886

�

�

361,030

�

�

439,630

�

361,030

�

�

1,816,149

�
Non-operating income and (expenses)

�

1,268

�

�

1,800

�

1,268

�

�

(30

)

�

38,560

�

�

56,441

�

38,560

�

�

(825

)
Income before income taxes

�

13,144

�

�

15,819

�

13,144

�

�

64,856

�

�

399,590

�

�

496,071

�

399,590

�

�

1,815,324

�
Income tax expense

�

1,523

�

�

1,335

�

1,523

�

�

5,669

�

�

46,299

�

�

41,861

�

46,299

�

�

158,689

�
Net income

�

11,621

�

�

14,484

�

11,621

�

�

59,187

�

�

353,291

�

�

454,210

�

353,291

�

�

1,656,635

�
EPS - Basic (In Dollar)

$

0.15

�

$

0.18

$

0.15

�

$

0.75

�

$

4.51

�

$

5.67

$

4.51

�

$

20.91

�
Shares used in computing EPS-Basic (In thousands)

�

78,373

�

�

80,160

�

78,373

�

�

79,212

�

�

78,373

�

�

80,160

�

78,373

�

�

79,212

�
EPS - Diluted (In Dollar)

$

0.15

�

$

0.18

$

0.15

�

$

0.73

�

$

4.46

�

$

5.60

$

4.46

�

$

20.55

�
Shares used in computing EPS-Diluted (In thousands)

�

79,207

�

�

81,067

�

79,207

�

�

80,602

�

�

79,207

�

�

81,067

�

79,207

�

�

80,602

�
UNAUDITED CONSOLIDATED BALANCE SHEETS
As of March 31, 2023 and 2022		 USD in Thousands NTD in Thousands
Mar 31, Mar 31, Mar 31, Mar 31,

2023

�

2022

�

2023

�

2022

�
Current assets
Cash & cash equivalents

185,110

�

340,632

�

5,636,592

�

9,752,306

�
Accounts receivable, net

47,877

�

56,022

�

1,457,865

�

1,603,903

�
Inventories, net

131,991

�

93,867

�

4,019,123

�

2,687,412

�
Other current assets

23,515

�

16,992

�

716,041

�

486,468

�
Total current assets

388,493

�

507,513

�

11,829,621

�

14,530,089

�
Non-current assets
Property, plant and equipment, net

16,074

�

17,800

�

489,440

�

509,608

�
Right-of-use assets

6,018

�

8,138

�

183,259

�

232,999

�
Intangible assets

103,274

�

108,218

�

3,144,691

�

3,098,289

�
Deferred income tax assets

11,664

�

9,653

�

355,164

�

276,374

�
Other non-current assets

147,484

�

76,667

�

4,490,886

�

2,194,962

�
Total non-current assets

284,514

�

220,476

�

8,663,440

�

6,312,232

�
Total Assets

673,007

�

727,989

�

20,493,061

�

20,842,321

�
�
Current Liabilities
Accounts payable

19,793

�

43,215

�

602,705

�

1,237,258

�
Other payables

30,540

�

40,844

�

929,938

�

1,169,376

�
Current income tax liabilities

9,281

�

24,445

�

282,606

�

699,860

�
Lease liabilities - current

3,292

�

3,487

�

100,249

�

99,818

�
Other current liabilities

6,792

�

10,716

�

206,792

�

306,815

�
Total current liabilities

69,698

�

122,707

�

2,122,290

�

3,513,127

�
Non-current Liabilities
Lease liabilities - non-current

2,726

�

4,652

�

83,010

�

133,181

�
Total non-current liabilities

2,726

�

4,652

�

83,010

�

133,181

�
Equity
Ordinary shares

26,738

�

26,742

�

811,832

�

811,956

�
Capital reserves

136,752

�

146,220

�

4,220,434

�

4,387,899

�
Retained earnings

508,057

�

492,747

�

15,025,235

�

14,627,390

�
Other equity

(11,301

)

(20,527

)

73,644

�

(1,393,138

)
Treasury shares

(59,663

)

(44,552

)

(1,843,384

)

(1,238,094

)
Total equity

600,583

�

600,630

�

18,287,761

�

17,196,013

�
Total liabilities and equity

673,007

�

727,989

�

20,493,061

�

20,842,321

�
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For three months ended March 31, 2023 and 2022		 USD in Thousands NTD in Thousands
Mar 31, Mar 31, Mar 31, Mar 31,

2023

�

2022

�

2023

�

2022

�
Cash flows from operating activities
Income before income tax for the period

13,144

�

64,856

�

399,590

�

1,815,324

�
Depreciation and amortization (including the right-of-use assets)

5,319

�

5,356

�

161,703

�

149,898

�
Expetced credit loss

84

�

-

�

2,549

�

-

�
Loss on disposal of equipment

-

�

1

�

-

�

33

�
Loss on disposal of intangible assets

47

�

-

�

1,422

�

-

�
Share-based compensation cost

9,653

�

9,097

�

291,744

�

254,632

�
Interest income

(1,525

)

(25

)

(46,376

)

(692

)
Income and expenses having no effect on cash flows

13,578

�

14,429

�

411,042

�

403,871

�
Accounts receivable

(13,254

)

(5,639

)

(403,575

)

(161,444

)
Inventories

13,502

�

(18,088

)

411,136

�

(517,868

)
Other current assets

(11,653

)

(10,577

)

(285,910

)

(298,996

)
Net changes in assets relating to operating activities

(11,405

)

(34,304

)

(278,349

)

(978,308

)
Accounts payable

6,791

�

2,369

�

206,778

�

67,838

�
Other payables

(10,023

)

(8,695

)

(305,192

)

(248,956

)
Other current liabilities

(6,683

)

673

�

(203,487

)

19,264

�
Net changes in liabilities relating to operating activities

(9,915

)

(5,653

)

(301,901

)

(161,854

)
Cash inflow generated from operations

5,402

�

39,328

�

230,382

�

1,079,033

�
Interest received

1,526

�

25

�

46,376

�

692

�
Income taxes paid

(5,021

)

(333

)

(152,638

)

(9,311

)
Net cash provided by operating activities

1,907

�

39,020

�

124,120

�

1,070,414

�
Cash flows from investing activities
Acquisition of equipment

(1,766

)

(1,840

)

(53,688

)

(51,490

)
Acquisition of intangible assets

(134

)

(7

)

(4,068

)

(194

)
Decrease in refundable deposits

6,784

�

24

�

206,557

�

693

�
Increase in other prepayments

(2,070

)

(2,238

)

(62,929

)

(62,653

)
Net cash flows provided by (used in) investing activities

2,814

�

(4,061

)

85,872

�

(113,644

)
Cash flows from financing activities
Proceeds from exercise of employee stock options

-

�

2,372

�

-

�

66,397

�
Repayment of the principal portion of lease liabilities

(771

)

(791

)

(23,431

)

(22,149

)
Treasury shares reissued to employees

10,422

�

11,789

�

310,226

�

327,175

�
Distribution of cash dividends

(60,062

)

(40,752

)

(1,724,498

)

(1,147,980

)
Cash dividend regain from canceled share-based compensation

19

�

16

�

555

�

479

�
Net cash flows used in financing activities

(50,392

)

(27,366

)

(1,437,148

)

(776,078

)
Effect of exchange rate changes

3,644

�

606

�

(111,636

)

369,871

�
Net (decrease) increase in cash and cash equivalents

(42,027

)

8,199

�

(1,338,792

)

550,563

�
Cash and cash equivalents at beginning of period

227,137

�

332,433

�

6,975,384

�

9,201,743

�
Cash and cash equivalents at end of period

185,110

�

340,632

�

5,636,592

�

9,752,306

�

�

Contacts

Parade Technologies

Yo-Ming Chang, +886-2-2627-9109

[email protected]

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