Parade Technologies Reports First Quarter 2021 Financial Results

Financial Highlights:

• Q121 consolidated revenue US$153.11 million, compared with US$98.36 million in the year-ago quarter
• Q121 consolidated net income US$36.44 million; Basic and Fully diluted after-tax EPS US$0.46 (NT$13.13) and US$0.45 (NT$12.82), 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 2021 ended March 31, 2021, and provided guidance for the second quarter of fiscal year 2021.

Consolidated revenue was US$153.11 million and consolidated net income was US$36.44 million. Basic and fully diluted after-tax earnings per share (�EPS”) were US$0.46 (NT$13.13) and US$0.45 (NT$12.82), respectively. These results compared to consolidated revenue US$98.36 million and consolidated net income of US$20.69 million, or US$0.27 (NT$8.00) and US$0.26 (NT$7.79) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the first quarter of 2021 consolidated revenue increased 3.25% sequentially and was up 55.66% year-over-year.

The gross profit in the first quarter of 2021 was US$69.00 million, representing an increase of 6.87% from the previous quarter and an increase of 57.17% compared to the same quarter of last year.

Based on current business outlook, Parade is providing the following guidance for the second quarter of fiscal 2021:

• Revenue: US$152.5 ~167.5 Million
• Gross Margin: 42.5% ~45.5%
• Operating Expense: US$29.5 ~30.5 Million

The financial figures detailed above for the first quarter of 2021 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 STATEMENTS OF COMPREHENSIVE INCOME	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,
	2021			2020			2021			2020			2021			2020			2021			2020
Revenue	153,107			148,287			153,107			98,360			4,343,653			4,263,263			4,343,653			2,961,629
Cost of goods sold	84,111			83,727			84,111			54,462			2,386,235			2,407,154			2,386,235			1,639,853
Gross profit	68,996			64,560			68,996			43,898			1,957,418			1,856,109			1,957,418			1,321,776
Research & development expenses	17,503			17,094			17,503			13,898			496,562			491,457			496,562			418,478
Sales & marketing expenses	6,894			6,671			6,894			4,864			195,583			191,796			195,583			146,442
General & administrative expenses	4,986			4,686			4,986			3,641			141,463			134,724			141,463			109,645
Total operating expenses	29,383			28,451			29,383			22,403			833,608			817,977			833,608			674,565
Operating income	39,613			36,109			39,613			21,495			1,123,810			1,038,132			1,123,810			647,211
Non-operating income and (expenses)	(419	)		(388	)		(419	)		817			(11,888	)		(11,147	)		(11,888	)		24,608
Income before income taxes	39,194			35,721			39,194			22,312			1,111,922			1,026,985			1,111,922			671,819
Income tax expense	2,759			2,429			2,759			1,625			78,263			69,815			78,263			48,928
Net income	36,435			33,292			36,435			20,687			1,033,659			957,170			1,033,659			622,891
EPS – Basic (In Dollar)	$0.46			$0.42			$0.46			$0.27			$13.13			$12.12			$13.13			$8.00
Shares used in computing EPS-Basic (In thousands)	78,701			78,955			78,701			77,872			78,701			78,955			78,701			77,872
EPS – Diluted (In Dollar)	$0.45			$0.41			$0.45			$0.26			$12.82			$11.88			$12.82			$7.79
Shares used in computing EPS-Diluted (In thousands)	80,621			80,562			80,621			79,965			80,621			80,562			80,621			79,965

UNAUDITED CONSOLIDATED BALANCE SHEETS		USD in Thousands						NTD in Thousands
As of March 31, 2021 and 2020		Mar 31,			Mar 31,			Mar 31,			Mar 31,
		2021			2020			2021			2020
Current assets
Cash & cash equivalents		284,717			282,212			8,125,824			8,531,276
Accounts receivable, net		57,088			45,960			1,629,283			1,389,371
Inventories, net		60,143			31,576			1,716,478			954,540
Other current assets		17,539			11,289			500,583			341,257
Total current assets		419,487			371,037			11,972,168			11,216,444
Non-current assets
Property, plant and equipment, net		16,025			9,346			457,361			282,538
Right-of-use assets		9,903			5,581			282,617			168,721
Intangible assets		112,509			77,367			3,210,995			2,338,795
Deferred income tax assets		7,563			3,922			215,861			118,550
Other non-current assets		10,187			11,735			290,741			354,746
Total non-current assets		156,187			107,951			4,457,575			3,263,350
Total Assets		575,674			478,988			16,429,743			14,479,794
Current Liabilities
Accounts payable		34,686			28,035			989,944			847,490
Other payables		29,265			21,116			835,217			638,316
Current income tax liabilities		21,336			17,182			608,922			519,418
Lease liabilities – current		3,406			2,010			97,203			60,774
Other current liabilities		4,150			7,913			118,469			239,206
Total current liabilities		92,843			76,256			2,649,755			2,305,204
Non current Liabilities
Lease liabilities – non-current		6,497			3,571			185,414			107,947
Total non-current liabilities		6,497			3,571			185,414			107,947
Equity
Ordinary shares		26,615			26,326			808,125			799,611
Capital reserves		138,106			104,245			4,165,865			3,171,706
Retained earnings		359,620			292,406			10,924,793			8,958,168
Other equity		(31,999	)		(20,520	)		(1,854,620	)		(761,117	)
Treasury shares		(16,008	)		(3,296	)		(449,589	)		(101,725	)
Total equity		476,334			399,161			13,594,574			12,066,643
Total liabilities and equity		575,674			478,988			16,429,743			14,479,794
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS		USD in Thousands						NTD in Thousands
For three months ended March 31, 2021 and 2020		Mar 31,			Mar 31,			Mar 31,			Mar 31,
		2021			2020			2021			2020
Cash flows from operating activities
Income before income tax for the period		39,194			22,312			1,111,922			671,819
Depreciation and amortization (including the right-of-use assets)		4,737			3,493			134,398			105,163
Loss on disposal of equipment		61			–			1,736			–
Share-based compensation cost		3,678			2,626			110,654			81,086
Interest income		(35	)		(815	)		(999	)		(24,539	)
Income and expenses having no effect on cash flows		8,441			5,304			245,789			161,710
Accounts receivable		(1,655	)		(6,016	)		(47,232	)		(181,852	)
Inventories		(3,436	)		(96	)		(98,063	)		(2,886	)
Other current assets		704			397			20,081			12,006
Net changes in assets relating to operating activities		(4,387	)		(5,715	)		(125,214	)		(172,732	)
Accounts payable		(8,884	)		1,811			(253,552	)		54,742
Other payables		(4,879	)		(3,524	)		(139,261	)		(106,531	)
Other current liabilities		(1,473	)		1,572			(42,028	)		47,511
Net changes in liabilities relating to operating activities		(15,236	)		(141	)		(434,841	)		(4,278	)
Cash provided by operations		28,012			21,760			797,656			656,519
Interest received		35			815			999			24,539
Income taxes paid		(1,578	)		(6,725	)		(44,756	)		(202,501	)
Net cash provided by operating activities		26,469			15,849			753,899			478,557
Cash flows from investing activities
Acquisition of equipment		(4,544	)		(1,117	)		(128,909	)		(33,633	)
Acquisition of intangible assets		(2,409	)		(240	)		(68,359	)		(7,216	)
Decrease in refundable deposits		125			12			3,562			349
Decrease (increase) in other prepayments		2,073			(2,537	)		59,165			(76,696	)
Net cash used in investing activities		(4,755	)		(3,882	)		(134,541	)		(117,196	)
Cash flows from financing activities
Proceeds from exercise of employee stock options		131			298			3,724			8,967
Repayment of the principal portion of lease liabilities		(776	)		(413	)		(22,004	)		(12,421	)
Purchase of treasury shares		(10,038	)		–			(281,882	)		–
Distribution of cash dividends		(24,455	)		–			(733,641	)		–
Cash dividend regain from canceled share-based compensation		7			43			199			1,295
Net cash used in financing activities		(35,131	)		(72	)		(1,033,604	)		(2,159	)
Effect of exchange rate changes on cash and cash equivalents		(1,012	)		(64	)		20,391			66,074
Net (decrease) increase in cash and cash equivalents		(14,429	)		11,832			(393,855	)		425,276
Cash and cash equivalents at beginning of period		299,146			270,380			8,519,679			8,106,000
Cash and cash equivalents at end of period		284,717			282,212			8,125,824			8,531,276

 

Contacts

Parade Technologies

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

ir@paradetech.com