Parade Technologies Reports Second Quarter 2021 Financial Results

Financial Highlights:

• Q221 consolidated revenue US$175.25 million, compared with US$121.54 million in the year-ago quarter
• Q221 consolidated net income US$45.07 million; Basic and Fully diluted after-tax EPS US$0.57 (NT$15.98) and US$0.56 (NT$15.62), 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 second quarter fiscal year 2021 ended June 30, 2021, and provided guidance for the third quarter of fiscal year 2021.

Consolidated revenue was US$175.25 million and consolidated net income was US$45.07 million. Basic and fully diluted after-tax earnings per share (�EPS”) were US$0.57 (NT$15.98) and US$0.56 (NT$15.62), respectively. These results compared to consolidated revenue US$121.54 million and consolidated net income of US$28.22 million, or US$0.36 (NT$10.81) and US$0.35 (NT$10.54) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the second quarter of 2021 consolidated revenue increased 14.47% sequentially and was up 44.19% year-over-year.

The gross profit in the second quarter of 2021 was US$83.49 million, representing an increase of 21.00% from the previous quarter and an increase of 55.17% compared to the same quarter of last year.

On June 15, 2021, Parade announced the TC3400 and TC3402, the world’s first highly integrated eDP timing controller (Tcon) devices with embedded source drivers and touchscreen controller (tTED) for the notebook LTPS (Low-Temperature Polysilicon) and Oxide in-cell LCD panel markets. Both devices target the latest notebook platforms by Intel and others by supporting Embedded Display Port (eDP) 1.4b with features such as Multi-SST Operation (MSO) operation and Panel Self-Refresh (PSR). The TC3400 device supports TrueTouch in-cell capacitive touch and active stylus functionality for commercial notebook applications, while the TC3402 provides a robust TrueTouch touch only solution for mainstream notebooks. The TC3400 combines Parade’s broad portfolio of patented display and touchscreen technology as well as proven display processing and high-speed signal technology to provide a low-power, highly integrated display and touchscreen solution for notebook in-cell displays.

On June 21, 2021, Parade announced the availability of its PS8461 retimer device in an automotive grade, the PS8461V. Using a retimer function, the PS8461V provides jitter cleaning of a DisplayPort™ video transport to increase signal reach, improve data reliability, and increased resilience to crosstalk and other electrical interference. The PS8461V is AEC-Q100 grade 2 certified with a -40° to 105°C operating temperature range. The PS8461V is one example of a high-performance, consumer-oriented display product that Parade is making available for the automotive industry, and we plan to continue the roll-out of such automotive grade product options.

On August 3, 2021, Parade announced the availability of the PS195 and PS196 DisplayPort™ 2.0 to HDMI™ 2.1 protocol converters for computer system motherboards, docking stations, and protocol converter dongle applications. The PS195 and PS196 products are fully compliant with the VESA® DisplayPort v2.0 and HDMI™ v2.1 specifications. The DP receiver supports up to 4 lanes at the HBR3 (8.1Gbps) link rate and supports optional DSC compression, both in decoding of the DP input or pass-through to the HDMI output. The HDMI output supports up to 4 lanes of FRL at 12Gbps data rate per lane, enabling display resolutions up to 10K when using DSC pass-through. The HDMI output also provides backward compatible with HDMI 2.0 and earlier versions, providing TMDS™ signaling up to 6.0 Gbps. Parade’s PS195 and PS196 DP 2.0 to HDMI 2.1 protocol converters offer the best power performance available on the market. The very low power consumption during standby and low power states greatly benefits portable system battery life.

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

• Revenue: US$176.5 ~194.5 Million
• Gross Margin: 44% ~ 48%
• Operating Expense: US$32.5 ~ 35.5 Million

The financial figures detailed above for the second quarter of 2021 have been audited 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.

CONSOLIDATED INCOME STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020 (SIX MONTHS ENDED JUNE 30, 2020 IS UNAUDITED)	USD in Thousands																						NTD in Thousands
	Sequential Quarter								Three Months ended							Six Months ended							Sequential Quarter								Three Months ended							Six Months ended
	Jun 30, 2021				Mar 31, 2021				Jun 30, 2021				Jun 30, 2020			Jun 30, 2021				Jun 30, 2020			Jun 30, 2021				Mar 31, 2021				Jun 30, 2021				Jun 30, 2020			Jun 30, 2021				Jun 30, 2020
Revenue		175,254				153,107				175,254				121,543			328,361				219,903			4,903,589				4,343,653				4,903,589				3,632,919			9,247,242				6,594,548
Cost of goods sold		91,767				84,111				91,767				67,738			175,878				122,200			2,567,624				2,386,235				2,567,624				2,024,686			4,953,859				3,664,539
Gross profit		83,487				68,996				83,487				53,805			152,483				97,703			2,335,965				1,957,418				2,335,965				1,608,233			4,293,383				2,930,009
Research & development expenses		19,088				17,503				19,088				15,198			36,591				29,096			534,076				496,562				534,076				454,265			1,030,638				872,743
Sales & marketing expenses		8,308				6,894				8,308				5,239			15,202				10,103			232,457				195,583				232,457				156,612			428,040				303,054
General & administrative expenses		5,898				4,986				5,898				4,516			10,884				8,157			165,030				141,463				165,030				134,965			306,493				244,610
Total operating expenses		33,294				29,383				33,294				24,953			62,677				47,356			931,563				833,608				931,563				745,842			1,765,171				1,420,407
Operating income		50,193				39,613				50,193				28,852			89,806				50,347			1,404,402				1,123,810				1,404,402				862,391			2,528,212				1,509,602
Non-operating income and (expenses)		(115	)			(419	)			(115	)			143			(534	)			960			(3,206	)			(11,888	)			(3,206	)			4,256			(15,094	)			28,864
Income before income taxes		50,078				39,194				50,078				28,995			89,272				51,307			1,401,196				1,111,922				1,401,196				866,647			2,513,118				1,538,466
Income tax expense		5,009				2,759				5,009				772			7,768				2,397			140,170				78,263				140,170				23,084			218,433				72,012
Net income		45,069				36,435				45,069				28,223			81,504				48,910			1,261,026				1,033,659				1,261,026				843,563			2,294,685				1,466,454
EPS – Basic (In Dollar)	$	0.57			$	0.46			$	0.57			$	0.36		$	1.03			$	0.63		$	15.98			$	13.13			$	15.98			$	10.81		$	29.12			$	18.81
Shares used in computing EPS-Basic (In thousands)		78,914				78,701				78,914				78,034			78,808				77,955			78,914				78,701				78,914				78,034			78,808				77,955
EPS – Diluted (In Dollar)	$	0.56			$	0.45			$	0.56			$	0.35		$	1.01			$	0.61		$	15.62			$	12.82			$	15.62			$	10.54		$	28.42			$	18.33
Shares used in computing EPS-Diluted (In thousands)		80,735				80,621				80,735				80,012			80,732				80,021			80,735				80,621				80,735				80,012			80,732				80,021

CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2021 AND 2020 (JUNE 30, 2020 IS UNAUDITED)	USD in Thousands						NTD in Thousands
	Jun 30, 2021			Jun 30, 2020			Jun 30, 2021			Jun 30, 2020
Current assets
Cash & cash equivalents	285,336			272,560			7,949,466			8,075,953
Accounts receivable, net	58,787			57,635			1,637,799			1,707,712
Inventories, net	60,448			33,248			1,684,077			985,135
Other current assets	23,322			12,444			649,767			368,725
Total current assets	427,893			375,887			11,921,109			11,137,525
Non-current assets
Property, plant and equipment, net	16,277			10,211			453,465			302,529
Right-of-use assets	9,489			5,023			264,360			148,839
Intangible assets	114,072			113,516			3,178,062			3,363,513
Deferred income tax assets	8,117			5,253			226,142			155,633
Other non-current assets	73,918			12,453			2,059,345			368,985
Total non-current assets	221,873			146,456			6,181,374			4,339,499
Total Assets	649,766			522,343			18,102,483			15,477,024
Current Liabilities
Accounts payable	36,860			29,177			1,026,922			864,510
Other payables	70,978			70,442			2,020,870			2,137,572
Current income tax liabilities	26,143			18,975			728,350			562,223
Lease liabilities – current	3,397			1,936			94,628			57,378
Other current liabilities	4,007			8,201			111,645			242,992
Total current liabilities	141,385			128,731			3,982,415			3,864,675
Non current Liabilities
Lease liabilities – non-current	6,092			3,087			169,732			91,461
Total non-current liabilities	6,092			3,087			169,732			91,461
Equity
Ordinary shares	26,636			26,343			808,705			800,100
Capital reserves	142,358			105,244			4,281,780			3,201,278
Retained earnings	369,703			281,263			11,167,756			8,584,981
Other equity	(31,453	)		(19,029	)		(2,168,732	)		(963,746	)
Treasury shares	(4,955	)		(3,296	)		(139,173	)		(101,725	)
Total equity	502,289			390,525			13,950,336			11,520,888
Total liabilities and equity	649,766			522,343			18,102,483			15,477,024

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020 (SIX MONTHS ENDED JUNE 30, 2020 IS UNAUDITED)	USD in Thousands						NTD in Thousands
	Jun 30, 2021			Jun 30, 2020			Jun 30, 2021			Jun 30, 2020
Cash flows from operating activities
Income before income tax for the period	89,272			51,307			2,513,118			1,538,466
Depreciation and amortization (including the right-of-use assets)	12,225			7,384			344,389			221,526
Loss on disposal of equipment	63			–			1,776			–
Share-based compensation cost	7,883			5,080			232,928			156,620
Interest income	(49	)		(857	)		(1,392	)		(25,800	)
Income and expenses having no effect on cash flows	20,122			11,607			577,701			352,346
Accounts receivable	(3,354	)		(17,690	)		(93,442	)		(524,159	)
Inventories	(3,741	)		(1,767	)		(104,223	)		(52,370	)
Other current assets	(5,081	)		(759	)		(141,559	)		(22,487	)
Net changes in assets relating to operating activities	(12,176	)		(20,216	)		(339,224	)		(599,016	)
Accounts payable	(6,710	)		2,953			(186,946	)		87,498
Other payables	1,814			6,433			50,543			190,622
Other current liabilities	(1,616	)		1,860			(45,027	)		55,102
Net changes in liabilities relating to operating activities	(6,512	)		11,246			(181,430	)		333,222
Cash provided by operations	90,706			53,944			2,570,165			1,625,018
Interest received	49			857			1,392			25,715
Income taxes paid	(1,999	)		(7,036	)		(56,326	)		(211,067	)
Income taxes received	2			1			53			12
Net cash provided by operating activities	88,758			47,766			2,515,284			1,439,678
Cash flows from investing activities
Acquisition of equipment	(6,157	)		(2,806	)		(173,444	)		(84,169	)
Acquisition of intangible assets	(81	)		(31	)		(2,292	)		(934	)
Increase in refundable deposits	(66,311	)		(32	)		(1,847,422	)		(955	)
Increase in other prepayments	(3,938	)		(4,992	)		(110,926	)		(149,754	)
Acquisition of business combinations	–			(37,169	)		–			(1,112,458	)
Net cash used in investing activities	(76,487	)		(45,030	)		(2,134,084	)		(1,348,270	)
Cash flows from financing activities
Proceeds from exercise of employee stock options	143			349			4,036			10,475
Repayment of the principal portion of lease liabilities	(2,018	)		(1,126	)		(56,844	)		(33,769	)
Purchase of treasury shares	(10,038	)		–			(281,882	)		–
Treasury shares reissued to employees	11,052			–			310,416			–
Distribution of cash dividends	(24,455	)		–			(733,641	)		–
Cash dividend regain from canceled share-based compensation	40			48			1,203			1,432
Net cash used in financing activities	(25,276	)		(729	)		(756,712	)		(21,862	)
Effect of exchange rate changes on cash and cash equivalents	(805	)		173			(194,701	)		(99,593	)
Net (decrease) increase in cash and cash equivalents	(13,810	)		2,180			(570,213	)		(30,047	)
Cash and cash equivalents at beginning of period	299,146			270,380			8,519,679			8,106,000
Cash and cash equivalents at end of period	285,336			272,560			7,949,466			8,075,953

 

Contacts

Parade Technologies

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

ir@paradetech.com