Parade Technologies Reports First Quarter 2024 Financial Results

Financial Highlights:

• Q124 consolidated revenue US$121.28 million, compared with US$99.99 million in the year-ago quarter
• Q124 consolidated net income US$18.21 million; Basic and Fully diluted after-tax EPS US$0.23 (NT$7.21) and US$0.23 (NT$7.17), 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 2024 ended March 31, 2024, and provided guidance for the second quarter of fiscal year 2024.

Consolidated revenue was US$121.28 million and consolidated net income was US$18.21 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.23 (NT$7.21) and US$0.23 (NT$7.17), respectively. These results compared to consolidated revenue US$99.99 million and consolidated net income of US$11.62 million, or US$0.15 (NT$4.51) and US$0.15 (NT$4.46) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the first quarter of 2024 consolidated revenue increased 0.96% sequentially and was up 21.29% year-over-year.

The gross profit in the first quarter of 2024 was US$51.96 million, representing an increase of 0.09% from the previous quarter and an increase of 17.97% 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 2024:

• Revenue: US$110.0 ~122.0 Million
• Gross Margin: 42% ~46%
• Operating Expense: US$32.5 ~35.5 Million

The financial figures detailed above for the first quarter of 2024 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,
	2024			2023			2024			2023				2024		2023		2024		2023
Revenue	121,278			120,126			121,278			99,990				3,814,192		3,824,814		3,814,192		3,039,712
Cost of goods sold	69,321			68,215			69,321			55,947				2,180,148		2,171,953		2,180,148		1,700,797
Gross profit	51,957			51,911			51,957			44,043				1,634,044		1,652,861		1,634,044		1,338,915
Research & development expenses	22,845			20,880			22,845			19,892				718,474		664,826		718,474		604,717
Sales & marketing expenses	7,413			7,399			7,413			7,198				233,130		235,593		233,130		218,822
General & administrative expenses	5,078			4,500			5,078			4,993				159,691		143,259		159,691		151,797
Expected credit loss	–			–			–			84				–		–		–		2,549
Total operating expenses	35,336			32,779			35,336			32,167				1,111,295		1,043,678		1,111,295		977,885
Operating income	16,621			19,132			16,621			11,876				522,749		609,183		522,749		361,030
Non-operating income and (expenses)	2,527			2,519			2,527			1,268				79,477		80,201		79,477		38,560
Income before income taxes	19,148			21,651			19,148			13,144				602,226		689,384		602,226		399,590
Income tax expense	937			1,594			937			1,523				29,477		50,738		29,477		46,299
Net income	18,211			20,057			18,211			11,621				572,749		638,646		572,749		353,291
EPS – Basic (In Dollar)	$0.23			$0.25			$0.23			$0.15				$7.21		$8.05		$7.21		$4.51
Shares used in computing EPS-Basic (In thousands)	79,483			79,353			79,483			78,373				79,483		79,353		79,483		78,373
EPS – Diluted (In Dollar)	$0.23			$0.25			$0.23			$0.15				$7.17		$8.02		$7.17		$4.46
Shares used in computing EPS-Diluted (In thousands)	79,850			79,650			79,850			79,207				79,850		79,650		79,850		79,207
UNAUDITED CONSOLIDATED BALANCE SHEETS As of March 31, 2024 and 2023	USD in Thousands						NTD in Thousands
	Mar 31,			Mar 31,			Mar 31,			Mar 31,
	2024			2023			2024			2023
Current assets
Cash & cash equivalents	290,654			185,110			9,300,922			5,636,592
Accounts receivable, net	47,187			47,877			1,509,969			1,457,865
Inventories, net	118,948			131,991			3,806,334			4,019,123
Other current assets	19,981			23,515			639,409			716,041
Total current assets	476,770			388,493			15,256,634			11,829,621
Non-current assets
Property, plant and equipment, net	12,435			16,074			397,929			489,440
Right-of-use assets	8,354			6,018			267,320			183,259
Intangible assets	101,152			103,274			3,236,859			3,144,691
Deferred income tax assets	12,479			11,664			399,322			355,164
Other non-current assets	154,214			147,484			4,934,861			4,490,886
Total non-current assets	288,634			284,514			9,236,291			8,663,440
Total Assets	765,404			673,007			24,492,925			20,493,061
Current Liabilities
Accounts payable	45,116			19,793			1,443,712			602,705
Other payables	22,201			30,540			710,430			929,938
Current income tax liabilities	10,705			9,281			342,556			282,606
Lease liabilities – current	3,278			3,292			104,906			100,249
Other current liabilities	6,956			6,792			222,605			206,792
Total current liabilities	88,256			69,698			2,824,209			2,122,290
Non-current Liabilities
Lease liabilities – non-current	5,076			2,726			162,414			83,010
Total non-current liabilities	5,076			2,726			162,414			83,010
Equity
Ordinary shares	26,731			26,738			811,627			811,832
Capital reserves	138,078			136,752			4,222,226			4,220,434
Retained earnings	544,970			508,057			16,174,349			15,025,235
Other equity	(5,514	)		(11,301	)		1,313,487			73,644
Treasury shares	(32,193	)		(59,663	)		(1,015,387	)		(1,843,384	)
Total equity	672,072			600,583			21,506,302			18,287,761
Total liabilities and equity	765,404			673,007			24,492,925			20,493,061
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS For three months ended March 31, 2024 and 2023	USD in Thousands						NTD in Thousands
	Mar 31,			Mar 31,			Mar 31,			Mar 31,
	2024			2023			2024			2023
Cash flows from operating activities
Income before income tax for the period	19,149			13,144			602,226			399,590
Depreciation and amortization (including the right-of-use assets)	5,167			5,319			162,504			161,703
Expected credit loss	–			84			–			2,549
Loss on disposal of equipment	20			–			628			–
Loss on disposal of intangible assets	54			47			1,703			1,422
Share-based compensation cost	9,190			9,653			285,186			291,744
Interest income	(2,480	)		(1,525	)		(77,998	)		(46,376	)
Income and expenses having no effect on cash flows	11,951			13,578			372,023			411,042
Accounts receivable	6,917			(13,254	)		221,335			(403,575	)
Inventories	3,937			13,502			125,979			411,136
Other current assets	(6,538	)		(11,653	)		(192,840	)		(285,910	)
Net changes in assets relating to operating activities	4,316			(11,405	)		154,474			(278,349	)
Accounts payable	(5,911	)		6,791			(189,160	)		206,778
Other payables	(9,836	)		(10,023	)		(314,754	)		(305,192	)
Other current liabilities	(125	)		(6,683	)		(3,998	)		(203,487	)
Net changes in liabilities relating to operating activities	(15,872	)		(9,915	)		(507,912	)		(301,901	)
Cash inflow generated from operations	19,544			5,402			620,811			230,382
Interest received	2,480			1,526			77,998			46,376
Income taxes paid	(1,279	)		(5,021	)		(40,223	)		(152,638	)
Net cash provided by operating activities	20,745			1,907			658,586			124,120
Cash flows from investing activities
Acquisition of equipment	(1,412	)		(1,766	)		(44,404	)		(53,688	)
Acquisition of intangible assets	(18	)		(134	)		(585	)		(4,068	)
Decrease in refundable deposits	1,846			6,784			59,085			206,557
Increase in other prepayments	(5,776	)		(2,070	)		(181,650	)		(62,929	)
Net cash flows (used in) provided by investing activities	(5,360	)		2,814			(167,554	)		85,872
Cash flows from financing activities
Repayment of the principal portion of lease liabilities	(807	)		(771	)		(25,393	)		(23,431	)
Treasury shares reissued to employees	12,468			10,422			378,062			310,226
Distribution of cash dividends	(12,800	)		(60,062	)		(390,871	)		(1,724,498	)
Cash dividend regain from canceled share-based compensation	3			19			84			555
Net cash flows used in financing activities	(1,136	)		(50,392	)		(38,118	)		(1,437,148	)
Effect of exchange rate changes	26			3,644			360,407			(111,636	)
Net increase (decrease) in cash and cash equivalents	14,275			(42,027	)		813,321			(1,338,792	)
Cash and cash equivalents at beginning of period	276,379			227,137			8,487,601			6,975,384
Cash and cash equivalents at end of period	290,654			185,110			9,300,922			5,636,592

 

Contacts

Parade Technologies

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

ir@paradetech.com