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Parade Technologies Reports Third Quarter 2021 Financial Results

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Financial Highlights:

  • Q321 consolidated revenue US$191.72 million, compared with US$150.15 million in the year-ago quarter

  • Q321 consolidated net income US$53.34 million; Basic and Fully diluted after-tax EPS US$0.67 (NT$18.71) and US$0.66 (NT$18.34), respectively

SAN JOSE, Calif., October 27, 2021--(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 2021 ended September 30, 2021, and provided guidance for the fourth quarter of fiscal year 2021.

Consolidated revenue was US$191.72 million and consolidated net income was US$53.34 million. Basic and fully diluted after-tax earnings per share ("EPS") were US$0.67 (NT$18.71) and US$0.66 (NT$18.34), respectively. These results compared to consolidated revenue US$150.15 million and consolidated net income of US$36.75 million, or US$0.47 (NT$13.80) and US$0.46 (NT$13.52) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the third quarter of 2021 consolidated revenue increased 9.39% sequentially and was up 27.69% year-over-year.

The gross profit in the third quarter of 2021 was US$94.14 million, representing an increase of 12.76% from the previous quarter and an increase of 42.47% compared to the same quarter of last year.

On August 19, 2021, Parade announced the PS188, a USB 3.2 Hub chip with integrated DisplayPort™ 1.4a to HDMI™ 2.0 converter and dual USB Power Delivery 3.0 controllers. The PS188 upstream facing port supports USB 3.2 (Gen 2×1) and DP Alternate Mode while downstream ports offer HDMI 2.0, two USB 3.2 (Gen 2×1) ports as well as an additional USB 2.0-only port. The two integrated Power Delivery controllers provide full PD 3.0 functionality to the upstream port and one downstream USB Type-C® port. The PS188 represents the first fruits from Parade’s 2020 acquisition of Fresco Logic and combines Parade’s video expertise with Fresco’s USB Hub and Power Delivery technologies. PS188 joins Parade’s lineup alongside the PS186 DP to HDMI protocol converter, the FL5500 USB 3.2 hub and the FL7112 USB Type-C PD 3.0 Controller.

On September 29, 2021, Parade announced the DP818/DP816 timing controllers (TTcon) with an integrated touch controller, TC2200 source drivers (TSD) with integrated touch analog front ends (AFEs) and the TC2201, a Gate-on-Array (GOA) level shifter (TLS) for required display & touch voltage generation. This family of complementary devices target high resolution notebook platforms supporting Embedded DisplayPort (eDP) 1.4b with features such as high dynamic range (HDR) and Panel Self-Refresh (PSR). The DP818 Tcon supports TrueTouch in-cell capacitive touch and active stylus functionality for commercial notebook applications, while the DP816 provides a robust TrueTouch touch only solution for mainstream notebooks. The touch integrated Tcon, SD and level shifter 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 premium notebook in-cell a-Si or Oxide TFT LCD displays.

On October 12, 2021, Parade announced the availability of the PS5169 and PS5170 USB-C linear redrivers optimized for smartphones and ultra-mobile devices. The PS51xx family improves signal integrity for USB 3.2 and DisplayPort 1.4a signaling over the USB-C interconnect and consumes very low power. The PS5169 and PS5170 linear redrivers are fully compliant with the USB-IF USB 3.2 specification supporting up to Gen 2×2, or two lanes operating at 10 Gbps signaling rate. For DP Alt Mode support they comply with VESA DP 1.4a with up to 4 lanes at HBR3, or 8.1 Gbps link rate, and comply with VESA DisplayPort Alt Mode 2.0. The PS5170 integrates an AUX switch for SBU signals.

On October 19, 2021, Parade announced the availability of the PS8830 USB4 retimer for commercial and consumer PCs, host systems and peripherals. The PS8830 features full capabilities of USB4, DisplayPort 2.0 and Thunderbolt 3.0. This allows OEMs to offer a wide range of product offerings with future-proof platform longevity. The PS8830 is fully compliant with USB-IF’s USB4 specification supporting up to Gen 3×2 (2x 20Gbps) or 40Gbps. It supports USB4 tunneling of DP 1.4a and USB 3.2 as well as alternate modes including DP 2.0 up to UHBR20 and TBT 3.0 up to 41.25Gbps (2x 20.625Gbps). PS8830 will fall back to USB 3.2 mode when USB4 mode is not supported.

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

  • Revenue: US$176.5 ~194.5 Million

  • Gross Margin: 44.5% ~48.5%

  • Operating Expense: US$32.5 ~35.5 Million

The financial figures detailed above for the third quarter of 2021 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 INCOME STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

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,

2021

2021

2021

2020

2021

2020

2021

2021

2021

2020

2021

2020

Revenue

191,718

175,254

191,718

150,146

520,079

370,049

5,341,284

4,903,589

5,341,284

4,421,777

14,588,526

11,016,325

Cost of goods sold

97,582

91,767

97,582

84,072

273,460

206,272

2,718,646

2,567,624

2,718,646

2,475,915

7,672,505

6,140,454

Gross profit

94,136

83,487

94,136

66,074

246,619

163,777

2,622,638

2,335,965

2,622,638

1,945,862

6,916,021

4,875,871

Research & development expenses

19,875

19,088

19,875

16,443

56,466

45,539

553,710

534,076

553,710

484,243

1,584,348

1,356,986

Sales & marketing expenses

8,496

8,308

8,496

6,413

23,698

16,516

236,709

232,457

236,709

188,851

664,749

491,905

General & administrative expenses

6,322

5,898

6,322

4,640

17,206

12,797

176,126

165,030

176,126

136,635

482,619

381,245

Total operating expenses

34,693

33,294

34,693

27,496

97,370

74,852

966,545

931,563

966,545

809,729

2,731,716

2,230,136

Operating income

59,443

50,193

59,443

38,578

149,249

88,925

1,656,093

1,404,402

1,656,093

1,136,133

4,184,305

2,645,735

Non-operating income and (expenses)

(46

)

(115

)

(46

)

(87

)

(580

)

873

(1,310

)

(3,206

)

(1,310

)

(2,557

)

(16,404

)

26,307

Income before income taxes

59,397

50,078

59,397

38,491

148,669

89,798

1,654,783

1,401,196

1,654,783

1,133,576

4,167,901

2,672,042

Income tax expense

6,060

5,009

6,060

1,745

13,828

4,142

168,809

140,170

168,809

51,404

387,242

123,416

Net income

53,337

45,069

53,337

36,746

134,841

85,656

1,485,974

1,261,026

1,485,974

1,082,172

3,780,659

2,548,626

EPS - Basic (In Dollar)

$0.67

$0.57

$0.67

$0.47

$1.71

$1.09

$18.71

$15.98

$18.71

$13.80

$47.85

$32.58

Shares used in computing EPS-Basic (In thousands)

79,424

78,914

79,424

78,437

79,004

78,229

79,424

78,914

79,424

78,437

79,004

78,229

EPS - Diluted (In Dollar)

$0.66

$0.56

$0.66

$0.46

$1.67

$1.07

$18.34

$15.62

$18.34

$13.52

$46.74

$31.77

Shares used in computing EPS-Diluted (In thousands)

81,021

80,735

81,021

80,018

80,895

80,230

81,021

80,735

81,021

80,018

80,895

80,230

UNAUDITED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2021 AND 2020

USD in Thousands

NTD in Thousands

Sep 30,

Sep 30,

Sep 30,

Sep 30,

2021

2020

2021

2020

Current assets

Cash & cash equivalents

308,491

271,266

8,591,470

7,893,836

Accounts receivable, net

62,250

60,524

1,733,665

1,761,246

Inventories, net

64,104

38,457

1,785,302

1,119,095

Other current assets

20,410

28,784

568,412

511,837

Total current assets

455,255

399,031

12,678,849

11,286,014

Non-current assets

Property, plant and equipment, net

17,813

12,731

496,115

370,459

Right-of-use assets

9,236

5,130

257,237

149,293

Intangible assets

112,377

113,120

3,129,677

3,291,791

Deferred income tax assets

7,832

6,414

218,126

186,643

Other non-current assets

73,747

903

2,053,842

352,075

Total non-current assets

221,005

138,298

6,154,997

4,350,261

Total Assets

676,260

537,329

18,833,846

15,636,275

Current Liabilities

Accounts payable

33,820

36,293

941,895

1,056,122

Other payables

37,403

27,478

1,041,667

799,615

Current income tax liabilities

31,362

21,514

873,439

626,055

Lease liabilities - current

3,527

1,987

98,228

57,827

Other current liabilities

7,047

8,109

196,229

235,961

Total current liabilities

113,159

95,381

3,151,458

2,775,580

Non-current Liabilities

Lease liabilities - non-current

5,709

3,143

159,009

91,466

Total non-current liabilities

5,709

3,143

159,009

91,466

Equity

Ordinary shares

26,636

26,597

808,705

807,581

Capital reserves

142,192

137,325

4,276,273

4,144,850

Retained earnings

421,199

315,705

12,653,796

9,667,305

Other equity

(27,680

)

(40,822

)

(2,076,222

)

(1,850,507

)

Treasury shares

(4,955

)

-

(139,173

)

-

Total equity

557,392

438,805

15,523,379

12,769,229

Total liabilities and equity

676,260

537,329

18,833,846

15,636,275

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

USD in Thousands

NTD in Thousands

Sep 30,

Sep 30,

Sep 30,

Sep 30,

2021

2020

2021

2020

Cash flows from operating activities

Income before income tax for the period

148,669

89,798

4,167,901

2,672,042

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

19,481

11,568

546,811

344,955

Loss on disposal of equipment

86

-

2,417

-

Share-based compensation cost

11,179

15,017

331,333

453,796

Interest income

(74

)

(914

)

(2,070

)

(27,482

)

Income and expenses having no effect on cash flows

30,672

25,671

878,491

771,269

Accounts receivable

(6,817

)

(20,580

)

(189,863

)

(598,864

)

Inventories

(7,397

)

(6,976

)

(206,015

)

(203,014

)

Other current assets

(2,154

)

(5,886

)

(59,976

)

(171,270

)

Net changes in assets relating to operating activities

(16,368

)

(33,442

)

(455,854

)

(973,148

)

Accounts payable

(9,750

)

10,069

(271,537

)

293,008

Other payables

3,258

2,839

90,749

82,611

Other current liabilities

1,422

1,767

39,613

51,432

Net changes in liabilities relating to operating activities

(5,070

)

14,675

(141,175

)

427,051

Cash provided by operations

157,903

96,702

4,449,363

2,897,214

Interest received

74

914

2,070

27,263

Income taxes paid

(3,952

)

(7,427

)

(110,944

)

(221,470

)

Income taxes received

2

1

52

12

Net cash provided by operating activities

154,027

90,190

4,340,541

2,703,019

Cash flows from investing activities

Acquisition of equipment

(9,205

)

(6,399

)

(258,385

)

(190,817

)

Acquisition of intangible assets

(147

)

(3,952

)

(4,119

)

(117,841

)

Increase in refundable deposits

(66,264

)

(37

)

(1,845,447

)

(1,090

)

Increase in other prepayments

(5,383

)

(6,582

)

(151,088

)

(196,289

)

Acquisition of business combinations

-

(37,169

)

-

(1,112,458

)

Net cash used in investing activities

(80,999

)

(54,139

)

(2,259,039

)

(1,618,495

)

Cash flows from financing activities

Proceeds from exercise of employee stock options

196

498

5,492

14,865

Repayment of the principal portion of lease liabilities

(2,783

)

(1,637

)

(78,118

)

(48,834

)

Purchase of treasury shares

(10,038

)

-

(281,882

)

-

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

42

53

1,269

1,584

Net cash used in financing activities

(61,005

)

(37,159

)

(1,795,531

)

(1,147,547

)

Effect of exchange rate changes on cash and cash equivalents

(2,678

)

1,994

(214,180

)

(149,141

)

Net increase (decrease) in cash and cash equivalents

9,345

886

71,791

(212,164

)

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

308,491

271,266

8,591,470

7,893,836

View source version on businesswire.com: https://www.businesswire.com/news/home/20211026005867/en/

Contacts

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

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