Parade Technologies Reports Fourth Quarter and Fiscal 2020 Financial Results

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

ir@paradetech.com