Parade Technologies Reports Fourth Quarter and Fiscal 2022 Financial Results
Financial Highlights:
Q422 consolidated revenue US$101.45 million, compared with US$194.26 million in the year-ago quarter
Q422 consolidated net income US$14.48 million; Basic and Fully diluted after-tax EPS US$0.18 (NT$5.67) and US$0.18 (NT$5.60), 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 2022 ended December 31, 2022, and provided guidance for the first quarter of fiscal year 2023.
Consolidated revenue was US$101.45 million and consolidated net income was US$14.48 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.18 (NT$5.67) and US$0.18 (NT$5.60), respectively. These results compared to consolidated revenue US$194.26 million and consolidated net income of US$52.60 million, or US$0.66 (NT$18.42) and US$0.65 (NT$18.08) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the fourth quarter of 2022 consolidated revenue decreased 32.83% sequentially and was down 47.77% year-over-year.
The gross profit in the fourth quarter of 2022 was US$44.68 million, representing a decrease of 34.66% from the previous quarter and a decrease of 52.46% compared to the same quarter of last year.
The Company also reported financial results for fiscal year 2022. Consolidated revenue was US$679.92 million, representing a decrease of 4.82% from US$714.33 million in the prior year. Gross profit was US$316.18 million and operating income was US$180.00 million. Net income for fiscal year 2022 was US$167.25 million, or US$2.09 (NT$61.35) per basic share and US$2.06 (NT$60.35) per fully diluted share. These results compared with net income of 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 in the prior year.
Based on current business outlook, Parade is providing the following guidance for the first quarter of fiscal 2023:
Revenue: US$90.0 ~105.0 Million
Gross Margin: 43% ~47%
Operating Expense: US$29.0 ~32.0 Million
On January 18, 2023, Parade introduced the new PS8936 retimer chip developed for PCI Express Rev. 5.0 and Compute Express Link (CXL), supporting sixteen bidirectional lanes. In addition to supporting the 32 Gbps data rate offered by the PCI Express 5.0 specification, it also supports 2.5 Gbps, 5 Gbps, 8 Gbps and 16 Gbps for backward compatibility with earlier PCI Express revisions. The PS8936 is the PCI Express Gen 5 retimer addition to Parade’s PS8926 and PS8925 PCI Express 4.0 16-lane and 4-lane retimer family currently in production and PS8570 PCI Express 4.0 4-channel linear redriver in sampling stage. The PS8936 is in full compliance with the PCI Express 5.0 specification and has been successfully tested in multiple OEM systems and PCI Express 5.0 CPU platforms. It is designed for use in enterprise systems including servers and data storage, and in high-performance workstations.
On January 25, 2023, Parade announced a new offering in its eDP Timing Controller (Tcon) with embedded driver (TED) product category. TC3222 provides a single-chip display driver solution as an alternative to the traditional multichip solutions (eDP Tcon + source drivers). The TC3222 provides a lower cost alternative to the TC3210 by eliminating the frame buffer required to support PSR (Panel Self Refresh). Both versions feature narrow COG package dimensions to support new generations of sleek LCD panel assemblies. TC3222 is compliant with the eDP 1.4b standard and supports Multi-SST Operation (MSO), Dynamic Refresh Rates, and more. The TC3222 is designed for Flip Chip on Glass application on both a-Si (Amorphous Silicon) and Oxide type TFT panels. It requires no external crystal or timing reference, includes a programmable gamma buffer, as well as Parade’s exclusive Smart-Backlight™ feature for additional color and power optimization. The fully programmable row and column driver timing enables the TC3222 to serve a broad range of panel types, and it provides synchronization signals that support a wide range of touch controllers.
The financial figures detailed above for the fourth quarter of 2022 and for the year ended December 31, 2022 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,
2022
2022
2022
2021
2022
2021
2022
2022
2022
2021
2022
2021
Revenue
101,450
151,044
101,450
194,255
679,916
714,334
3,181,446
4,591,744
3,181,446
5,406,120
20,055,284
19,994,646
Cost of goods sold
56,774
82,671
56,774
100,279
363,733
373,739
1,780,425
2,513,211
1,780,425
2,790,774
10,739,544
10,463,279
Gross profit
44,676
68,373
44,676
93,976
316,183
340,595
1,401,021
2,078,533
1,401,021
2,615,346
9,315,740
9,531,367
Research & development expenses
20,074
21,090
20,074
20,420
83,873
76,886
629,511
641,148
629,511
568,288
2,497,656
2,152,636
Sales & marketing expenses
6,469
7,285
6,469
8,005
29,875
31,703
202,857
221,477
202,857
222,773
887,170
887,522
General & administrative expenses
4,114
5,327
4,114
6,429
22,439
23,635
129,023
161,917
129,023
178,932
664,390
661,551
Total operating expenses
30,657
33,702
30,657
34,854
136,187
132,224
961,391
1,024,542
961,391
969,993
4,049,216
3,701,709
Operating income
14,019
34,671
14,019
59,122
179,996
208,371
439,630
1,053,991
439,630
1,645,353
5,266,524
5,829,658
Non-operating income and (expenses)
1,800
1,185
1,800
(170
)
3,521
(750
)
56,441
36,031
56,441
(4,721
)
108,309
(21,125
)
Income before income taxes
15,819
35,856
15,819
58,952
183,517
207,621
496,071
1,090,022
496,071
1,640,632
5,374,833
5,808,533
Income tax expense
1,335
3,216
1,335
6,352
16,269
20,180
41,861
97,771
41,861
176,784
476,514
564,026
Net income
14,484
32,640
14,484
52,600
167,248
187,441
454,210
992,251
454,210
1,463,848
4,898,319
5,244,507
EPS – Basic (In Dollar)
$
0.18
$
0.41
$
0.18
$
0.66
$
2.09
$
2.37
$
5.67
$
12.38
$
5.67
$
18.42
$
61.35
$
66.29
Shares used in computing EPS-Basic (In thousands)
80,160
80,182
80,160
79,491
79,845
79,114
80,160
80,182
80,160
79,491
79,845
79,114
EPS – Diluted (In Dollar)
$
0.18
$
0.40
$
0.18
$
0.65
$
2.06
$
2.32
$
5.60
$
12.21
$
5.60
$
18.08
$
60.35
$
64.79
Shares used in computing EPS-Diluted (In thousands)
81,067
81,272
81,067
80,973
81,160
80,952
81,067
81,272
81,067
80,973
81,160
80,952
UNAUDITED CONSOLIDATED BALANCE SHEETSAs of DECEMBER 31, 2022 and 2021
USD in Thousands
NTD in Thousands
Dec 31,
Dec 31,
Dec 31,
Dec 31,
2022
2021
2022
2021
Current assets
Cash & cash equivalents
227,137
332,433
6,975,384
9,201,743
Accounts receivable, net
34,707
50,383
1,065,863
1,394,595
Inventories, net
145,493
75,779
4,468,087
2,097,554
Other current assets
20,236
12,407
621,454
343,437
Total current assets
427,573
471,002
13,130,788
13,037,329
Non-current assets
Property, plant and equipment, net
16,136
17,625
495,523
487,868
Right-of-use assets
5,302
8,474
162,812
234,571
Intangible assets
103,038
109,979
3,164,291
3,044,207
Deferred income tax assets
11,621
8,817
356,894
244,042
Other non-current assets
155,044
75,636
4,761,390
2,093,609
Total non-current assets
291,141
220,531
8,940,910
6,104,297
Total Assets
718,714
691,533
22,071,698
19,141,626
Current Liabilities
Accounts payable
13,003
40,846
399,308
1,130,616
Other payables
100,624
90,291
2,970,174
2,519,249
Current income tax liabilities
12,846
18,678
394,513
517,012
Lease liabilities – current
2,656
3,574
81,569
98,946
Other current liabilities
13,474
10,044
413,782
278,008
Total current liabilities
142,603
163,433
4,259,346
4,543,831
Non-current Liabilities
Lease liabilities – non-current
2,646
4,900
81,243
135,625
Total non-current liabilities
2,646
4,900
81,243
135,625
Equity
Ordinary shares
26,740
26,634
811,913
808,638
Capital reserves
138,110
143,754
4,192,921
4,319,491
Retained earnings
492,999
433,068
14,671,389
12,970,276
Other equity
(14,299
)
(23,915
)
208,496
(2,070,966
)
Treasury shares
(70,085
)
(56,341
)
(2,153,610
)
(1,565,269
)
Total equity
573,465
523,200
17,731,109
14,462,170
Total liabilities and equity
718,714
691,533
22,071,698
19,141,626
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE TWELVE MONTHS ENDED DECEMBER 31, 2022 and 2021
USD in Thousands
NTD in Thousands
Dec 31,
Dec 31,
Dec 31,
Dec 31,
2022
2021
2022
2021
Cash flows from operating activities
Income before income tax for the year
183,517
207,621
5,374,833
5,808,533
Depreciation and amortization (including the right-of-use assets)
21,960
25,509
654,416
714,503
Loss on disposal of intangible assets
665
–
19,817
–
Loss on disposal of equipment
1
86
35
2,417
Share-based compensation cost
32,529
31,676
969,165
913,618
Interest income
(2,069
)
(96
)
(63,912
)
(2,685
)
Income and expenses having no effect on cash flows
53,086
57,175
1,579,521
1,627,853
Accounts receivable
15,675
5,050
481,391
139,785
Inventories
(69,714
)
(19,072
)
(2,140,923
)
(527,908
)
Other current assets
(37,354
)
(7,774
)
(1,078,797
)
(223,290
)
Net changes in assets relating to operating activities
(91,393
)
(21,796
)
(2,738,329
)
(611,413
)
Accounts payable
(27,843
)
(2,724
)
(855,072
)
(75,409
)
Other payables
(8,977
)
15,396
(275,698
)
426,155
Other current liabilities
3,430
4,420
105,341
122,349
Net changes in liabilities relating to operating activities
(33,390
)
17,092
(1,025,429
)
473,095
Cash provided by operations
111,820
260,092
3,190,596
7,298,068
Interest received
2,069
96
63,912
2,685
Income taxes paid
(24,117
)
(17,010
)
(718,678
)
(476,455
)
Income taxes received
242
2
7,219
52
Net cash generated from operating activities
90,014
243,180
2,543,049
6,824,350
Cash flows from investing activities
Acquisition of equipment
(5,757
)
(10,584
)
(171,548
)
(296,457
)
Acquisition of intangible assets
(466
)
(395
)
(13,901
)
(11,065
)
Increase in refundable deposits
(72,127
)
(66,269
)
(2,215,017
)
(1,834,320
)
Increase in other prepayments
(11,997
)
(7,968
)
(357,512
)
(223,186
)
Net cash used in investing activities
(90,347
)
(85,216
)
(2,757,978
)
(2,365,028
)
Cash flows from financing activities
Proceeds from exercise of employee stock options
2,448
271
72,937
7,583
Repayment of the principal portion of lease liabilities
(3,663
)
(3,899
)
(109,154
)
(109,202
)
Purchase of treasury shares
(48,277
)
(61,424
)
(1,547,481
)
(1,707,978
)
Proceeds from exercise of disgorgement
–
–
11
–
Treasury shares reissued to employees
34,533
11,052
959,141
310,416
Distribution of cash dividends
(93,720
)
(59,474
)
(2,622,127
)
(1,752,708
)
Cash dividend regain from canceled share-based compensation
76
62
2,245
1,881
Net cash used in financing activities
(108,603
)
(113,412
)
(3,244,428
)
(3,250,008
)
Effect of exchange rate changes
3,640
(11,265
)
1,232,998
(527,250
)
Net (decrease) increase in cash and cash equivalents
(105,296
)
33,287
(2,226,359
)
682,064
Cash and cash equivalents at beginning of year
332,433
299,146
9,201,743
8,519,679
Cash and cash equivalents at end of year
227,137
332,433
6,975,384
9,201,743
Contacts
Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com
