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Parade Technologies Reports Fourth Quarter and Fiscal 2020 Financial Results

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Financial Highlights:

  • Q420 consolidated revenue US$148.29 million, compared with US$96.18 million in the year-ago quarter
  • Q420 consolidated net income US$33.29 million; Basic and Fully diluted after-tax EPS US$0.42 (NT$12.12) and US$0.41 (NT$11.88), 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 fourth fiscal quarter and fiscal year 2020 ended December 31, 2020, and provided guidance for the first quarter of fiscal year 2021.

Consolidated revenue was US$148.29 million and consolidated net income was US$33.29 million. Basic and fully diluted after-tax earnings per share (�EPS�) were US$0.42 (NT$12.12) and US$0.41 (NT$11.88), respectively. These results compared to consolidated revenue US$96.18 million and consolidated net income of US$20.72 million, or US$0.27 (NT$8.18) and US$0.26 (NT$7.98) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the fourth quarter of 2020 consolidated revenue decreased 1.24% sequentially and was up 54.18% year-over-year.

The gross profit in the fourth quarter of 2020 was US$64.56 million, representing a decrease of 2.29% from the previous quarter and an increase of 52.76% compared to the same quarter of last year.

The Company also reported financial results for fiscal year 2020. Consolidated revenue was US$518.34 million, representing an increase of 35.67% from US$382.05 million in the prior year. Gross profit was US$228.34 million and operating income was US$125.03 million. Net income for fiscal year 2020 was US$118.95 million, or US$1.52 (NT$44.86) per basic share and US$1.48 (NT$43.73) per fully diluted share. These results compared with net income of US$78.74 million, or US$1.02 (NT$31.54) per basic share and US$0.99 (NT$30.69) per fully diluted share in the prior year.

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

  • Revenue: US$139 ~153 Million
  • Gross Margin: 41.5% ~44.5%
  • Operating Expense: US$28 ~29 Million

The financial figures detailed above for the fourth quarter of 2020 and for the year ended December 31, 2020 have not been audited or 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 Twelve Months ended Sequential Quarter Three Months ended Twelve Months ended
� Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31,
�

2020

2020

2020

2019

2020

2019

2020

2020

2020

2019

2020

2019

� �
Revenue �

148,287

�

150,146

�

148,287

�

96,180

518,336

382,050

4,263,263

�

4,421,777

�

4,263,263

�

2,931,558

15,279,588

11,810,592

Cost of goods sold �

83,727

�

84,072

�

83,727

�

53,919

289,999

218,882

2,407,154

�

2,475,915

�

2,407,154

�

1,643,425

8,547,608

6,766,981

Gross profit �

64,560

�

66,074

�

64,560

�

42,261

228,337

163,168

1,856,109

�

1,945,862

�

1,856,109

�

1,288,133

6,731,980

5,043,611

Research & development expenses �

17,094

�

16,443

�

17,094

�

13,962

62,633

53,625

491,457

�

484,243

�

491,457

�

425,578

1,848,443

1,657,519

Sales & marketing expenses �

6,671

�

6,413

�

6,671

�

4,821

23,187

18,597

191,796

�

188,851

�

191,796

�

146,912

683,701

574,796

General & administrative expenses �

4,686

�

4,640

�

4,686

�

3,704

17,483

13,360

134,724

�

136,635

�

134,724

�

112,903

515,969

412,845

Expected credit loss �

-

�

-

�

-

�

-

-

12

-

�

-

�

-

�

-

-

367

Total operating expenses �

28,451

�

27,496

�

28,451

�

22,487

103,303

85,594

817,977

�

809,729

�

817,977

�

685,393

3,048,113

2,645,527

Operating income �

36,109

�

38,578

�

36,109

�

19,774

125,034

77,574

1,038,132

�

1,136,133

�

1,038,132

�

602,740

3,683,867

2,398,084

Non-operating income and expenses �

(388

)

(87

)

(388

)

1,007

485

3,812

(11,147

)

(2,557

)

(11,147

)

30,678

15,160

117,950

Income before income taxes �

35,721

�

38,491

�

35,721

�

20,781

125,519

81,386

1,026,985

�

1,133,576

�

1,026,985

�

633,418

3,699,027

2,516,034

Income tax expense �

2,429

�

1,745

�

2,429

�

66

6,571

2,649

69,815

�

51,404

�

69,815

�

2,001

193,231

82,275

Net income �

33,292

�

36,746

�

33,292

�

20,715

118,948

78,737

957,170

�

1,082,172

�

957,170

�

631,417

3,505,796

2,433,759

EPS - Basic (In Dollar) �

$0.42

�

$0.47

�

$0.42

�

$0.27

$1.52

$1.02

$12.12

�

$13.80

�

$12.12

�

$8.18

$44.86

$31.54

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

78,955

�

78,437

�

78,955

�

77,194

78,156

77,171

78,955

�

78,437

�

78,955

�

77,194

78,156

77,171

EPS - Diluted (In Dollar) �

$0.41

�

$0.46

�

$0.41

�

$0.26

$1.48

$0.99

$11.88

�

$13.52

�

$11.88

�

$7.98

$43.73

$30.69

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

80,562

�

80,018

�

80,562

�

79,132

80,161

79,309

80,562

�

80,018

�

80,562

�

79,132

80,161

79,309

UNAUDITED CONSOLIDATED BALANCE SHEETS USD in Thousands NTD in Thousands
As of December 31, 2020 and 2019 Dec 31, Dec 31, Dec 31, Dec 31,

2020

�

2019

�

2020

�

2019

�

Current assets
Cash & cash equivalents

299,146

�

270,380

�

8,519,679

�

8,106,000

�

Accounts receivable, net

55,433

�

39,944

�

1,578,725

�

1,197,533

�

Inventories, net

56,707

�

31,481

�

1,615,012

�

943,784

�

Prepayments

11,197

�

8,344

�

318,886

�

250,140

�

Other current assets

16,998

�

10,048

�

484,108

�

301,249

�

Total current assets

439,481

�

360,197

�

12,516,410

�

10,798,706

�

Non-current assets
Property, plant and equipment, net

12,874

�

9,267

�

366,648

�

277,838

�

Right-of-use assets

8,771

�

6,055

�

249,796

�

181,543

�

Intangible assets

112,754

�

79,207

�

3,211,223

�

2,374,609

�

Deferred income tax assets

6,694

�

3,801

�

190,661

�

113,956

�

Other non-current assets

1,188

�

866

�

33,839

�

25,956

�

Total non-current assets

142,281

�

99,196

�

4,052,167

�

2,973,902

�

Total Assets

581,762

�

459,393

�

16,568,577

�

13,772,608

�

�
Current Liabilities
Accounts payable

43,570

�

26,224

�

1,240,882

�

786,191

�

Other payables

58,599

�

24,640

�

1,706,070

�

738,687

�

Current income tax liabilities

18,538

�

20,556

�

527,976

�

616,281

�

Lease liabilities - current

2,662

�

2,199

�

75,801

�

65,937

�

Other current liabilities

5,624

�

6,341

�

160,159

�

190,109

�

Total current liabilities

128,993

�

79,960

�

3,710,888

�

2,397,205

�

Non current Liabilities
Lease liabilities - non-current

6,109

�

3,856

�

173,995

�

115,606

�

Total non-current liabilities

6,109

�

3,856

�

173,995

�

115,606

�

Equity
Ordinary shares

26,604

�

26,313

�

807,803

�

799,205

�

Capital reserves

137,586

�

103,824

�

4,152,210

�

3,159,096

�

Retained earnings

324,547

�

271,675

�

9,890,935

�

8,333,982

�

Other equity

(36,108

)

(22,939

)

(1,999,547

)

(930,761

)

Treasury shares

(5,969

)

(3,296

)

(167,707

)

(101,725

)

Total equity

446,660

�

375,577

�

12,683,694

�

11,259,797

�

Total liabilities and equity

581,762

�

459,393

�

16,568,577

�

13,772,608

�

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS USD in Thousands NTD in Thousands
For twelve months ended December 31, 2020 and 2019 Dec 31, Dec 31, Dec 31, Dec 31,

2020

�

2019

�

2020

�

2019

�

Cash flows from operating activities
Income before income tax for the year

125,519

�

81,386

�

3,699,027

�

2,516,034

�

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

16,244

�

15,779

�

480,020

�

487,704

�

Loss on disposal of equipment

-

�

4

�

-

�

128

�

Share-based compensation cost

18,783

�

9,769

�

566,708

�

301,582

�

Interest income

(963

)

(3,419

)

(28,885

)

(105,793

)

Income and expenses having no effect on cash flows

34,064

�

22,133

�

1,017,843

�

683,621

�

Accounts receivable

(15,488

)

6,000

�

(441,109

)

179,875

�

Inventories

(25,226

)

4,320

�

(718,449

)

129,513

�

Prepayments

(2,853

)

(1,608

)

(81,261

)

(48,205

)

Other current assets

(6,271

)

801

�

(178,585

)

24,018

�

Net changes in assets relating to operating activities

(49,838

)

9,513

�

(1,419,404

)

285,201

�

Accounts payable

17,347

�

(5,403

)

494,026

�

(161,971

)

Other payables

9,505

�

4,291

�

270,701

�

128,642

�

Other current liabilities

(718

)

(973

)

(20,439

)

(29,177

)

Net changes in liabilities relating to operating activities

26,134

�

(2,085

)

744,288

�

(62,506

)

Cash provided by operations

135,879

�

110,947

�

4,041,754

�

3,422,350

�

Interest received

963

�

3,419

�

28,459

�

105,674

�

Income taxes paid

(11,844

)

(1,160

)

(349,981

)

(35,845

)

Income taxes received

-

�

-

�

13

�

-

�

Net cash provided by operating activities

124,998

�

113,206

�

3,720,245

�

3,492,179

�

Cash flows from investing activities
Acquisition of equipment

(7,680

)

(2,490

)

(226,959

)

(76,972

)

Acquisition of intangible assets

(6,102

)

(5,633

)

(180,309

)

(174,119

)

Increase in refundable deposits

(322

)

(57

)

(9,182

)

(1,702

)

Acquisition of business combinations

(37,169

)

-

�

(1,112,458

)

-

�

Net cash used in investing activities

(51,273

)

(8,180

)

(1,528,908

)

(252,793

)

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

529

�

501

�

15,632

�

15,479

�

Repayment of the principal portion of lease liabilities

(2,560

)

(2,196

)

(75,647

)

(67,877

)

Purchase of treasury shares

(5,969

)

-

�

(167,707

)

-

�

Treasury shares reissued to employees

3,296

�

3,296

�

101,725

�

101,725

�

Distribution of cash dividends

(39,369

)

(32,529

)

(1,216,887

)

(980,751

)

Cash dividend regain from canceled share-based compensation

56

�

54

�

1,685

�

1,604

�

Net cash used in financing activities

(44,017

)

(30,874

)

(1,341,199

)

(929,820

)

Effect of exchange rate changes on cash and cash equivalents

(942

)

527

�

(436,459

)

(215,494

)

Net increase in cash and cash equivalents

28,766

�

74,679

�

413,679

�

2,094,072

�

Cash and cash equivalents at beginning of year

270,380

�

195,701

�

8,106,000

�

6,011,928

�

Cash and cash equivalents at end of year

299,146

�

270,380

�

8,519,679

�

8,106,000

�

�

Contacts

Parade Technologies

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

[email protected]

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