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
UNAUDITED CONSOLIDATED INCOME STATEMENTS	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