Parade Technologies Reports Third Quarter 2019 Financial Results

Parade Technologies Reports Third Quarter 2019 Financial Results

Financial Highlights:

Q319 consolidated revenue US$101.45 million, compared with US$85.58 million in the year-ago quarter

Q319 consolidated net income US$21.87 million; Basic and Fully diluted after-tax EPS US$0.28 (NT$8.86) and US$0.28 (NT$8.67), 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 third quarter fiscal year 2019 ended September 30, 2019, and provided guidance for the fourth quarter of fiscal year 2019.

Consolidated revenue was US$101.45 million and consolidated net income was US$21.87 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.28 (NT$8.86) and US$0.28 (NT$8.67), respectively. These results compared to consolidated revenue US$85.58 million and consolidated net income of US$16.48 million, or US$0.21 (NT$6.57) and US$0.21 (NT$6.33) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the third quarter of 2019 consolidated revenue increased 11.85% sequentially and was up 18.54% year-over-year.

The gross profit in the third quarter of 2019 was US$43.56 million, representing an increase of 14.34% from the previous quarter and an increase of 21.41% compared to the same quarter of last year.

On August 29, 2019, Parade announced the PS8822, a USB Type-C 10 Gbps retimer that supports both USB 3.2 Gen 2 single lane operation and DisplayPort 1.4a Alternate Mode. The PS8822 is designed for the USB Type-C upstream facing port of peripheral devices such as docking stations, monitors, and TVs.

On September 10, 2019, Parade announced the PS8769, a linear redriver designed to restore and improve the signal integrity of the high-speed signals passing through the USB Type-C connector. The device is specifically designed to support up to the 10 Gbps data rate of USB 3.2 Gen 2 superspeed data channels, as well as up to the 8.1 Gbps HBR3 link rate for DisplayPort Alt Mode. The PS8769 is designed to accommodate all USB 3.2 and DisplayPort Alt mode configurations supported by the USB Type-C connector.

On October 15, 2019, Parade announced another addition to its portfolio of high-speed data interface retimer products. The new PS8419 is the first available retimer chip designed for HDMI 2.1 interface applications. It removes clock and data jitter, as well as data line skew, that can be imposed on the high-speed HDMI 2.1 signal as it propagates across the HDMI interconnect cable and connectors, and system PCB circuit traces. Applications for the PS8419 include at the output of an HDMI 2.1 source device to provide a clean output signal at the HDMI receptacle, or at the input of an HDMI 2.1 display or A/V receiver to ensure error-free signal reception capability.

On October 21, 2019, Parade introduces two new products to its portfolio of high-speed data retimer products. The new PS8925 and PS8926 are retimer chips developed for PCI Express Rev. 4.0, supporting four and sixteen bidirectional lanes, respectively. In addition to supporting the 16 Gbps data rate offered by the newest PCI Express 4.0 specification, they also support 2.5 Gbps, 5 Gbps, and 8 Gbps for backward compatibility with earlier PCI Express revisions.

The PS8925 and PS8926 are among the first PCI Express 4.0 retimer chips available. They are in full compliance with the PCI Express 4.0 specification and have been successfully tested in multiple OEM PCI Express 4.0 platforms. Both the PS8925 and PS8926 are designed for use in enterprise systems including servers and data storage, and in high-performance workstations. Such retimers are needed in very-high-speed data channels to maintain signal integrity across longer PCB traces, connector, and cables.

Based on current business outlook, Parade is providing the following guidance for the fourth quarter of fiscal 2019:

Revenue: US$88 ~97 Million

Gross Margin: 41% ~44%

Operating Expense: US$21.5 ~22.5 Million

The financial figures detailed above for the third quarter of 2019 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 STATEMENTS OFCOMPREHENSIVE INCOME
USD in Thousands

NTD in Thousands
Sequential Quarter

Three Months ended

Nine Months ended

Sequential Quarter

Three Months ended

Nine Months ended

Sep 30,

 

Jun 30,

 

Sep 30,

 

Sep 30,

 

Sep 30,

 

Sep 30,

 

Sep 30,

 

Jun 30,

 

Sep 30,

 

Sep 30,

 

Sep 30,

 

Sep 30,

2019

2019

2019

2018

2019

2018

2019

2019

2019

2018

2019

2018

 
Revenue

 

101,447

 

90,703

 

101,447

 

85,579

 

 

285,870

 

241,903

 

 

3,165,157

 

2,824,499

 

3,165,157

 

2,624,695

 

 

8,879,034

 

7,240,554

 

Cost of goods sold

 

57,883

 

52,602

 

57,883

 

49,698

 

 

164,963

 

142,034

 

 

1,805,971

 

1,638,014

 

1,805,971

 

1,524,239

 

 

5,123,556

 

4,250,654

 

Gross profit

 

43,564

 

38,101

 

43,564

 

35,881

 

 

120,907

 

99,869

 

 

1,359,186

 

1,186,485

 

1,359,186

 

1,100,456

 

 

3,755,478

 

2,989,900

 

Research & development expenses

 

13,523

 

13,353

 

13,523

 

12,927

 

 

39,663

 

37,980

 

 

421,915

 

415,819

 

421,915

 

396,484

 

 

1,231,941

 

1,136,567

 

Sales & marketing expenses

 

4,778

 

4,463

 

4,778

 

4,048

 

 

13,776

 

11,795

 

 

149,079

 

138,991

 

149,079

 

124,156

 

 

427,884

 

352,836

 

General & administrative expenses

 

3,433

 

3,123

 

3,433

 

2,736

 

 

9,656

 

8,191

 

 

107,113

 

97,252

 

107,113

 

83,910

 

 

299,942

 

245,005

 

Expected credit loss

 

12

 

 

12

 

 

 

12

 

 

 

367

 

 

367

 

 

 

367

 

 

Total operating expenses

 

21,746

 

20,939

 

21,746

 

19,711

 

 

63,107

 

57,966

 

 

678,474

 

652,062

 

678,474

 

604,550

 

 

1,960,134

 

1,734,408

 

Operating income

 

21,818

 

17,162

 

21,818

 

16,170

 

 

57,800

 

41,903

 

 

680,712

 

534,423

 

680,712

 

495,906

 

 

1,795,344

 

1,255,492

 

Non-operating income and expenses

 

1,197

 

1,083

 

1,197

 

242

 

 

2,805

 

270

 

 

37,370

 

33,701

 

37,370

 

7,425

 

 

87,272

 

8,284

 

Income before income taxes

 

23,015

 

18,245

 

23,015

 

16,412

 

 

60,605

 

42,173

 

 

718,082

 

568,124

 

718,082

 

503,331

 

 

1,882,616

 

1,263,776

 

Income tax expense (benefit)

 

1,150

 

678

 

1,150

 

(72

)

 

2,583

 

(443

)

 

35,891

 

21,110

 

35,891

 

(2,225

)

 

80,274

 

(13,246

)

Net income

 

21,865

 

17,567

 

21,865

 

16,484

 

 

58,022

 

42,616

 

 

682,191

 

547,014

 

682,191

 

505,556

 

 

1,802,342

 

1,277,022

 

EPS – Basic (In Dollar)

$

0.28

$

0.23

$

0.28

$

0.21

 

$

0.76

$

0.56

 

$

8.86

$

7.10

$

8.86

$

6.57

 

$

23.58

$

16.66

 

Shares used in computing EPS-Basic (In thousands)

 

76,980

 

77,008

 

76,980

 

76,956

 

 

76,436

 

76,667

 

 

76,980

 

77,008

 

76,980

 

76,956

 

 

76,436

 

76,667

 

EPS – Diluted (In Dollar)

$

0.28

$

0.22

$

0.28

$

0.21

 

$

0.74

$

0.53

 

$

8.67

$

6.84

$

8.67

$

6.33

 

$

22.97

$

16.01

 

Shares used in computing EPS-Diluted (In thousands)

 

78,648

 

80,012

 

78,648

 

79,844

 

 

78,470

 

79,759

 

 

78,648

 

80,012

 

78,648

 

79,844

 

 

78,470

 

79,759

 

UNAUDITED CONSOLIDATED BALANCE SHEETS
USD in Thousands

NTD in Thousands
As of September 30, 2019 and 2018

Sep 30,

 

Sep 30,

 

Sep 30,

 

Sep 30,

2019

2018

2019

2018

Current assets

Cash & cash equivalents

232,943

 

162,980

 

7,230,564

 

4,975,769

 

Accounts receivable, net

50,367

 

55,861

 

1,563,373

 

1,705,446

 

Inventories, net

30,935

 

31,210

 

960,219

 

952,833

 

Prepayments

7,579

 

6,702

 

235,264

 

204,617

 

Other current assets

12,020

 

9,705

 

373,108

 

296,279

 

Total current assets

333,844

 

266,458

 

10,362,528

 

8,134,944

 

Non-current assets

Property, plant and equipment, net

8,878

 

8,129

 

275,580

 

248,173

 

Right-of-use assets

6,648

 

 

206,356

 

 

Intangible assets

80,403

 

84,743

 

2,495,704

 

2,587,229

 

Deferred income tax assets

2,631

 

1,788

 

81,654

 

54,590

 

Other non-current assets

849

 

816

 

26,344

 

24,902

 

Total non-current assets

99,409

 

95,476

 

3,085,638

 

2,914,894

 

Total Assets

433,253

 

361,934

 

13,448,166

 

11,049,838

 

 
Current Liabilities

Accounts payable

28,202

 

21,893

 

875,382

 

668,385

 

Other payables

19,634

 

17,385

 

609,445

 

530,770

 

Current income tax liabilities

18,423

 

18,831

 

571,853

 

574,899

 

Lease liabilities – current

2,159

 

 

67,029

 

 

Other current liabilities

6,799

 

5,383

 

211,045

 

164,366

 

Total current liabilities

75,217

 

63,492

 

2,334,754

 

1,938,420

 

Non current Liabilities

Lease liabilities – non-current

4,489

 

 

139,327

 

 

Total non current liabilities

4,489

 

 

139,327

 

 

Equity

Ordinary shares

26,313

 

26,021

 

799,222

 

790,158

 

Capital reserves

105,418

 

93,071

 

3,207,043

 

2,823,022

 

Retained earnings

250,934

 

202,137

 

7,701,891

 

6,186,796

 

Other equity

(25,822

)

(22,787

)

(632,346

)

(688,558

)

Treasury shares

(3,296

)

 

(101,725

)

 

Total equity

353,547

 

298,442

 

10,974,085

 

9,111,418

 

Total liabilities and equity

433,253

 

361,934

 

13,448,166

 

11,049,838

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
USD in Thousands

NTD in Thousands
For nine months ended September 30, 2019 and 2018

Sep 30,

 

Sep 30,

 

Sep 30,

 

Sep 30,

2019

2018

2019

2018

Cash flows from operating activities

Income before income tax for the period

60,605

 

42,173

 

1,882,616

 

1,263,776

 

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

11,129

 

8,524

 

345,544

 

255,046

 

Expected credit loss

12

 

 

367

 

 

Loss on disposal of equipment

4

 

 

128

 

 

Share-based compensation cost

7,246

 

6,056

 

223,663

 

180,521

 

Interest income

(2,625

)

(62

)

(81,601

)

(1,874

)

Income and expenses having no effect on cash flows

15,766

 

14,518

 

488,101

 

433,693

 

Accounts receivable

(4,434

)

(3,589

)

(137,631

)

(109,571

)

Inventories

4,866

 

3,065

 

151,026

 

93,573

 

Prepayments

(844

)

(2,769

)

(26,189

)

(84,543

)

Other current assets

(1,169

)

(3,930

)

(36,297

)

(119,993

)

Net changes in assets relating to operating activities

(1,581

)

(7,223

)

(49,091

)

(220,534

)

Accounts payable

(3,425

)

(3,895

)

(106,304

)

(118,912

)

Other payables

(714

)

(3,248

)

(22,168

)

(99,167

)

Other current liabilities

(515

)

(2,897

)

(15,994

)

(88,431

)

Net changes in liabilities relating to operating activities

(4,654

)

(10,040

)

(144,466

)

(306,510

)

Cash provided by operations

70,136

 

39,428

 

2,177,160

 

1,170,425

 

Interest received

2,625

 

49

 

81,509

 

1,465

 

Income taxes paid

(834

)

(857

)

(25,885

)

(25,639

)

Net cash provided by operating activities

71,927

 

38,620

 

2,232,784

 

1,146,251

 

Cash flows from investing activities

Acquisition of equipment

(1,388

)

(1,835

)

(43,085

)

(54,895

)

Acquisition of intangible assets

(3,614

)

(2,166

)

(112,205

)

(64,816

)

(Increase)decrease in refundable deposits

(40

)

2

 

(1,232

)

72

 

Net cash used in investing activities

(5,041

)

(3,999

)

(156,522

)

(119,639

)

Cash flows from financing activities

Proceeds from exercise of employee stock options

458

 

442

 

14,224

 

13,227

 

Distribution of cash dividends

(32,529

)

(33,182

)

(980,751

)

(965,599

)

Purchase of treasury shares

 

2,760

 

 

80,688

 

Treasury shares reissued to employees

3,296

 

(2,760

)

101,725

 

(80,688

)

Repayment of the principal portion of lease liabilities

(1,521

)

 

(47,229

)

 

Cash dividend regain from canceled share-based compensation

31

 

27

 

930

 

826

 

Net cash used in financing activities

(30,265

)

(32,713

)

(911,101

)

(951,546

)

Effect of exchange rate changes on cash and cash equivalents

621

 

1,017

 

53,475

 

137,476

 

Increase in cash and cash equivalents

37,242

 

2,925

 

1,218,636

 

212,542

 

Cash and cash equivalents at beginning of period

195,701

 

160,055

 

6,011,928

 

4,763,227

 

Cash and cash equivalents at end of period

232,943

 

162,980

 

7,230,564

 

4,975,769

 

 
Contacts
Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
[email protected]

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