Parade Technologies Reports Fourth Quarter and Fiscal 2021 Financial Results

Financial Highlights:

• Q421 consolidated revenue US$194.26 million, compared with US$148.29 million in the year-ago quarter
• Q421 consolidated net income US$52.60 million; Basic and Fully diluted after-tax EPS US$0.66 (NT$18.42) and US$0.65 (NT$18.08), 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 2021 ended December 31, 2021, and provided guidance for the first quarter of fiscal year 2022.

Consolidated revenue was US$194.26 million and consolidated net income was US$52.60 million. Basic and fully diluted after-tax earnings per share (�EPS”) were US$0.66 (NT$18.42) and US$0.65 (NT$18.08), respectively. These results compared to consolidated revenue US$148.29 million and consolidated net income of US$33.29 million, or US$0.42 (NT$12.12) and US$0.41 (NT$11.88) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the fourth quarter of 2021 consolidated revenue increased 1.32% sequentially and was up 31.00% year-over-year.

The gross profit in the fourth quarter of 2021 was US$93.98 million, representing a decrease of 0.17% from the previous quarter and an increase of 45.56% compared to the same quarter of last year.

The Company also reported financial results for fiscal year 2021. Consolidated revenue was US$714.33 million, representing an increase of 37.81% from US$518.34 million in the prior year. Gross profit was US$340.60 million and operating income was US$208.37 million. Net income for fiscal year 2021 was US$187.44 million, or US$2.37 (NT$66.29) per basic share and US$2.32 (NT$64.79) per fully diluted share. These results compared with net income of 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 in the prior year.

Based on current business outlook, Parade is providing the following guidance for the first quarter of fiscal 2022:

• Revenue: US$193.5 ~212.5 Million
• Gross Margin: 44.5% ~48.5%
• Operating Expense:
• US$33 ~36 Million

The financial figures detailed above for the fourth quarter of 2021 and for the year ended December 31, 2021 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 INCOME STATEMENTS	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,
	2021				2021				2021				2020				2021				2020			2021				2021				2021				2020				2021				2020
Revenue		194,255				191,718				194,255				148,287				714,334				518,336			5,406,120				5,341,284				5,406,120				4,263,263				19,994,646				15,279,588
Cost of goods sold		100,279				97,582				100,279				83,727				373,739				289,999			2,790,774				2,718,646				2,790,774				2,407,154				10,463,279				8,547,608
Gross profit		93,976				94,136				93,976				64,560				340,595				228,337			2,615,346				2,622,638				2,615,346				1,856,109				9,531,367				6,731,980
Research & development expenses		20,420				19,875				20,420				17,094				76,886				62,633			568,288				553,710				568,288				491,457				2,152,636				1,848,443
Sales & marketing expenses		8,005				8,496				8,005				6,671				31,703				23,187			222,773				236,709				222,773				191,796				887,522				683,701
General & administrative expenses		6,429				6,322				6,429				4,686				23,635				17,483			178,932				176,126				178,932				134,724				661,551				515,969
Total operating expenses		34,854				34,693				34,854				28,451				132,224				103,303			969,993				966,545				969,993				817,977				3,701,709				3,048,113
Operating income		59,122				59,443				59,122				36,109				208,371				125,034			1,645,353				1,656,093				1,645,353				1,038,132				5,829,658				3,683,867
Non-operating income and (expenses)		(170	)			(46	)			(170	)			(388	)			(750	)			485			(4,721	)			(1,310	)			(4,721	)			(11,147	)			(21,125	)			15,160
Income before income taxes		58,952				59,397				58,952				35,721				207,621				125,519			1,640,632				1,654,783				1,640,632				1,026,985				5,808,533				3,699,027
Income tax expense		6,352				6,060				6,352				2,429				20,180				6,571			176,784				168,809				176,784				69,815				564,026				193,231
Net income		52,600				53,337				52,600				33,292				187,441				118,948			1,463,848				1,485,974				1,463,848				957,170				5,244,507				3,505,796
EPS – Basic (In Dollar)	$	0.66			$	0.67			$	0.66			$	0.42			$	2.37			$	1.52		$	18.42			$	18.71			$	18.42			$	12.12			$	66.29			$	44.86
Shares used in computing EPS-Basic (In thousands)		79,491				79,424		#		79,491				78,955				79,114				78,156			79,491				79,424				79,491				78,955				79,114				78,156
EPS – Diluted (In Dollar)	$	0.65			$	0.66			$	0.65			$	0.41			$	2.32			$	1.48		$	18.08			$	18.34			$	18.08			$	11.88			$	64.79			$	43.73
Shares used in computing EPS-Diluted (In thousands)		80,973				81,021				80,973				80,562				80,952				80,161			80,973				81,021				80,973				80,562				80,952				80,161

UNAUDITED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2021 AND 2020	USD in Thousands						NTD in Thousands
	Dec 31,			Dec 31,			Dec 31,			Dec 31,
	2021			2020			2021			2020
Current assets
Cash & cash equivalents	332,433			299,146			9,201,743			8,519,679
Accounts receivable, net	50,383			55,433			1,394,595			1,578,725
Inventories, net	75,779			56,707			2,097,554			1,615,012
Other current assets	21,203			16,998			586,897			484,108
Total current assets	479,798			428,284			13,280,789			12,197,524
Non-current assets
Property, plant and equipment, net	17,625			12,874			487,868			366,648
Right-of-use assets	8,474			8,771			234,571			249,796
Intangible assets	109,979			112,754			3,044,207			3,211,223
Deferred income tax assets	8,817			6,694			244,042			190,661
Other non-current assets	75,636			12,385			2,093,609			352,725
Total non-current assets	220,531			153,478			6,104,297			4,371,053
Total Assets	700,329			581,762			19,385,086			16,568,577
Current Liabilities
Accounts payable	40,846			43,570			1,130,616			1,240,882
Other payables	90,291			58,599			2,519,249			1,706,070
Current income tax liabilities	27,474			18,538			760,472			527,976
Lease liabilities – current	3,575			2,662			98,945			75,801
Other current liabilities	10,043			5,624			278,009			160,159
Total current liabilities	172,229			128,993			4,787,291			3,710,888
Non-current Liabilities
Lease liabilities – non-current	4,900			6,109			135,625			173,995
Total non-current liabilities	4,900			6,109			135,625			173,995
Equity
Ordinary shares	26,634			26,604			808,638			807,803
Capital reserves	143,754			137,586			4,319,491			4,152,210
Retained earnings	433,068			324,547			12,970,276			9,890,935
Other equity	(23,915	)		(36,108	)		(2,070,966	)		(1,999,547	)
Treasury shares	(56,341	)		(5,969	)		(1,565,269	)		(167,707	)
Total equity	523,200			446,660			14,462,170			12,683,694
Total liabilities and equity	700,329			581,762			19,385,086			16,568,577

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020	USD in Thousands						NTD in Thousands
	Dec 31,			Dec 31,			Dec 31,			Dec 31,
	2021			2020			2021			2020
Cash flows from operating activities
Income before income tax for the year	207,621			125,519			5,808,533			3,699,027
Depreciation and amortization (including the right-of-use assets)	25,509			16,244			714,503			480,020
Loss on disposal of equipment	86			–			2,417			–
Share-based compensation cost	14,303			18,783			424,619			566,708
Interest income	(96	)		(963	)		(2,685	)		(28,885	)
Income and expenses having no effect on cash flows	39,802			34,064			1,138,854			1,017,843
Accounts receivable	5,050			(15,488	)		139,785			(441,109	)
Inventories	(19,072	)		(25,226	)		(527,908	)		(718,449	)
Other current assets	804			(6,271	)		22,249			(178,585	)
Net changes in assets relating to operating activities	(13,218	)		(46,985	)		(365,874	)		(1,338,143	)
Accounts payable	(2,724	)		17,347			(75,409	)		494,026
Other payables	15,396			9,505			426,155			270,701
Other current liabilities	4,420			(718	)		122,349			(20,439	)
Net changes in liabilities relating to operating activities	17,092			26,134			473,095			744,288
Cash provided by operations	251,297			138,733			7,054,608			4,123,015
Interest received	96			963			2,685			28,459
Income taxes paid	(17,010	)		(11,844	)		(476,455	)		(349,981	)
Income taxes received	2			–			52			13
Net cash provided by operating activities	234,385			127,852			6,580,890			3,801,506
Cash flows from investing activities
Acquisition of equipment	(10,584	)		(7,680	)		(296,457	)		(226,959	)
Acquisition of intangible assets	(395	)		(6,102	)		(11,065	)		(7,508	)
Increase in refundable deposits	(66,269	)		(322	)		(1,834,320	)		(9,182	)
Increase in other prepayments	(7,968	)		(8,725	)		(223,186	)		(257,825	)
Acquisition of business combinations	–			(37,169	)		–			(1,112,458	)
Net cash used in investing activities	(85,216	)		(59,998	)		(2,365,028	)		(1,613,932	)
Cash flows from financing activities
Proceeds from exercise of employee stock options	271			529			7,583			15,632
Repayment of the principal portion of lease liabilities	(3,899	)		(2,560	)		(109,202	)		(75,647	)
Purchase of treasury shares	(61,424	)		(5,969	)		(1,707,978	)		(167,707	)
Treasury shares reissued to employees	11,052			3,296			310,416			101,725
Distribution of cash dividends	(59,474	)		(39,369	)		(1,752,708	)		(1,216,887	)
Cash dividend regain from canceled share-based compensation	62			56			1,881			1,685
Net cash used in financing activities	(113,412	)		(44,017	)		(3,250,008	)		(1,341,199	)
Effect of exchange rate changes on cash and cash equivalents	(2,470	)		4,930			(283,790	)		(432,696	)
Net increase in cash and cash equivalents	33,287			28,766			682,064			413,679
Cash and cash equivalents at beginning of year	299,146			270,380			8,519,679			8,106,000
Cash and cash equivalents at end of year	332,433			299,146			9,201,743			8,519,679

 

Contacts

Parade Technologies

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

ir@paradetech.com