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Parade Technologies Reports Second Quarter 2021 Financial Results

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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., August 04, 2021--(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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210803005643/en/

Contacts

Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com

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