Parade Technologies Reports First Quarter 2023 Financial Results
Financial Highlights:
Q123 consolidated revenue US$99.99 million, compared with US$210.72 million in the year-ago quarter
Q123 consolidated net income US$11.62 million; Basic and Fully diluted after-tax EPS US$0.15 (NT$4.51) and US$0.15 (NT$4.46), 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 first quarter fiscal year 2023 ended March 31, 2023, and provided guidance for the second quarter of fiscal year 2023.
Consolidated revenue was US$99.99 million and consolidated net income was US$11.62 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.15 (NT$4.51) and US$0.15 (NT$4.46), respectively. These results compared to consolidated revenue US$210.72 million and consolidated net income of US$59.19 million, or US$0.75 (NT$20.91) and US$0.73 (NT$20.55) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the first quarter of 2023 consolidated revenue decreased 1.44% sequentially and was down 52.55% year-over-year.
The gross profit in the first quarter of 2023 was US$44.04 million, representing a decrease of 1.42% from the previous quarter and a decrease of 56.30% compared to the same quarter of last year.
On February 22, 2023, Parade announced a new offering in its high-speed connectivity product category. The PS5510 which is an updated version of the FL5500 USB hub controller featuring ultra-low power operation and hardware-accelerated secure firmware updates. PS5510 is compliant with the USB 3.2 specification and offers 5 SuperSpeed+ ports (1 up/4 down), each capable of providing 10Gbps data connectivity. The upstream port and 2 downstream ports support the features required for USB-C connections while all of the ports may be used for legacy USB Type-A connections. One additional USB 2.0-only port is provided for an additional hard-wired device, often needed in the target applications. With its ultra-low power operation and on-chip RSA/SHA-256 hardware to support secure in-field firmware upgrades, PS5510 is ideal for port expansion on USB4 and Thunderbolt™ docking solutions as well as monitors and mini-docks/dongles.
On March 22, 2023, Parade announced a new offering in its eDP Timing Controller with Embedded Driver (TED) product category. The TC3230 features support for higher resolutions as well as the most advanced Embedded DisplayPort features for power savings. TC3230 is compliant with the eDP 1.5 standard and supports Multi-SST Operation (MSO), Panel Self-Refresh, DSC 1.2a, ALPM, and more. The TC3220 is configurable to support all panel resolutions up to 2560×1600 using an 18 or 24-bit color format. Adding a second TC3230, in MSO+DSC mode, enables panel resolutions up to 3840×2160. With support for the standard based embedded video interface protocols offered by major CPU, GPU and SoC vendors, system implementation is straight-forward. The integrated source drivers support up to 2562 output channels with support for dual-gate and MUX2/MUX3 sub-pixel driving structures. The TC3230 is designed for Chip on Glass (COG) application on LTPS (Low Temperature Polycrystalline Silicon), a-Si (Amorphous Silicon) or 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 TC3230 to serve a broad range of panels types, and it provides synchronization signals that support a wide range of touch controllers.
On March 29, 2023, Parade announced the availability of the PS8838 USB 3.2 / DP 2.1 MUX and PS8839 USB 3.2 / DP 2.1 DeMUX for commercial and consumer PCs, host systems and peripherals. PS8838 features a DisplayPort 2.1 and USB 3.2 Gen 2×1 MUX with retiming, targeting USB-C host systems and docks. PS8839 is a DeMUX/Retimer device optimized for sink applications including docks and peripherals. The PS8838 and PS8839 are fully compliant with USB-IF USB 3.2 specification supporting up to Gen 2×1 or 10Gbps and VESA DP 2.1 standard up to UHBR20. The devices support low power consumption for standby and low power states, greatly extending the battery life of mobile devices and enabling system EnergyStar compliance.
Based on current business outlook, Parade is providing the following guidance for the second quarter of fiscal 2023:
Revenue: US$98 ~110 Million
Gross Margin: 43% ~47%
Operating Expense: US$29.5 ~32.5 Million
The financial figures detailed above for the first quarter of 2023 have been reviewed by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (“TPEx”) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
Parade Technologies, Ltd. and Subsidiaries.
The reader is advised that these consolidated financial statements have been prepared originally in NT$ 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
USD in Thousands
NTD in Thousands
Sequential Quarter
Three Months ended
Sequential Quarter
Three Months ended
Mar 31,
Dec 31,
Mar 31,
Mar 31,
Mar 31,
Dec 31,
Mar 31,
Mar 31,
2023
2022
2023
2022
2023
2022
2023
2022
Revenue
99,990
101,450
99,990
210,723
3,039,712
3,181,446
3,039,712
5,898,143
Cost of goods sold
55,947
56,774
55,947
109,948
1,700,797
1,780,425
1,700,797
3,077,451
Gross profit
44,043
44,676
44,043
100,775
1,338,915
1,401,021
1,338,915
2,820,692
Research & development expenses
19,892
20,074
19,892
21,226
604,717
629,511
604,717
594,124
Sales & marketing expenses
7,198
6,469
7,198
8,214
218,822
202,857
218,822
229,911
General & administrative expenses
4,993
4,114
4,993
6,449
151,797
129,023
151,797
180,508
Expected credit loss
(84
)
–
(84
)
–
(2,549
)
–
(2,549
)
–
Total operating expenses
32,167
30,657
32,167
35,889
977,885
961,391
977,885
1,004,543
Operating income
11,876
14,019
11,876
64,886
361,030
439,630
361,030
1,816,149
Non-operating income and (expenses)
1,268
1,800
1,268
(30
)
38,560
56,441
38,560
(825
)
Income before income taxes
13,144
15,819
13,144
64,856
399,590
496,071
399,590
1,815,324
Income tax expense
1,523
1,335
1,523
5,669
46,299
41,861
46,299
158,689
Net income
11,621
14,484
11,621
59,187
353,291
454,210
353,291
1,656,635
EPS – Basic (In Dollar)
$
0.15
$
0.18
$
0.15
$
0.75
$
4.51
$
5.67
$
4.51
$
20.91
Shares used in computing EPS-Basic (In thousands)
78,373
80,160
78,373
79,212
78,373
80,160
78,373
79,212
EPS – Diluted (In Dollar)
$
0.15
$
0.18
$
0.15
$
0.73
$
4.46
$
5.60
$
4.46
$
20.55
Shares used in computing EPS-Diluted (In thousands)
79,207
81,067
79,207
80,602
79,207
81,067
79,207
80,602
UNAUDITED CONSOLIDATED BALANCE SHEETSAs of March 31, 2023 and 2022
USD in Thousands
NTD in Thousands
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2023
2022
2023
2022
Current assets
Cash & cash equivalents
185,110
340,632
5,636,592
9,752,306
Accounts receivable, net
47,877
56,022
1,457,865
1,603,903
Inventories, net
131,991
93,867
4,019,123
2,687,412
Other current assets
23,515
16,992
716,041
486,468
Total current assets
388,493
507,513
11,829,621
14,530,089
Non-current assets
Property, plant and equipment, net
16,074
17,800
489,440
509,608
Right-of-use assets
6,018
8,138
183,259
232,999
Intangible assets
103,274
108,218
3,144,691
3,098,289
Deferred income tax assets
11,664
9,653
355,164
276,374
Other non-current assets
147,484
76,667
4,490,886
2,194,962
Total non-current assets
284,514
220,476
8,663,440
6,312,232
Total Assets
673,007
727,989
20,493,061
20,842,321
Current Liabilities
Accounts payable
19,793
43,215
602,705
1,237,258
Other payables
30,540
40,844
929,938
1,169,376
Current income tax liabilities
9,281
24,445
282,606
699,860
Lease liabilities – current
3,292
3,487
100,249
99,818
Other current liabilities
6,792
10,716
206,792
306,815
Total current liabilities
69,698
122,707
2,122,290
3,513,127
Non-current Liabilities
Lease liabilities – non-current
2,726
4,652
83,010
133,181
Total non-current liabilities
2,726
4,652
83,010
133,181
Equity
Ordinary shares
26,738
26,742
811,832
811,956
Capital reserves
136,752
146,220
4,220,434
4,387,899
Retained earnings
508,057
492,747
15,025,235
14,627,390
Other equity
(11,301
)
(20,527
)
73,644
(1,393,138
)
Treasury shares
(59,663
)
(44,552
)
(1,843,384
)
(1,238,094
)
Total equity
600,583
600,630
18,287,761
17,196,013
Total liabilities and equity
673,007
727,989
20,493,061
20,842,321
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWSFor three months ended March 31, 2023 and 2022
USD in Thousands
NTD in Thousands
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2023
2022
2023
2022
Cash flows from operating activities
Income before income tax for the period
13,144
64,856
399,590
1,815,324
Depreciation and amortization (including the right-of-use assets)
5,319
5,356
161,703
149,898
Expetced credit loss
84
–
2,549
–
Loss on disposal of equipment
–
1
–
33
Loss on disposal of intangible assets
47
–
1,422
–
Share-based compensation cost
9,653
9,097
291,744
254,632
Interest income
(1,525
)
(25
)
(46,376
)
(692
)
Income and expenses having no effect on cash flows
13,578
14,429
411,042
403,871
Accounts receivable
(13,254
)
(5,639
)
(403,575
)
(161,444
)
Inventories
13,502
(18,088
)
411,136
(517,868
)
Other current assets
(11,653
)
(10,577
)
(285,910
)
(298,996
)
Net changes in assets relating to operating activities
(11,405
)
(34,304
)
(278,349
)
(978,308
)
Accounts payable
6,791
2,369
206,778
67,838
Other payables
(10,023
)
(8,695
)
(305,192
)
(248,956
)
Other current liabilities
(6,683
)
673
(203,487
)
19,264
Net changes in liabilities relating to operating activities
(9,915
)
(5,653
)
(301,901
)
(161,854
)
Cash inflow generated from operations
5,402
39,328
230,382
1,079,033
Interest received
1,526
25
46,376
692
Income taxes paid
(5,021
)
(333
)
(152,638
)
(9,311
)
Net cash provided by operating activities
1,907
39,020
124,120
1,070,414
Cash flows from investing activities
Acquisition of equipment
(1,766
)
(1,840
)
(53,688
)
(51,490
)
Acquisition of intangible assets
(134
)
(7
)
(4,068
)
(194
)
Decrease in refundable deposits
6,784
24
206,557
693
Increase in other prepayments
(2,070
)
(2,238
)
(62,929
)
(62,653
)
Net cash flows provided by (used in) investing activities
2,814
(4,061
)
85,872
(113,644
)
Cash flows from financing activities
Proceeds from exercise of employee stock options
–
2,372
–
66,397
Repayment of the principal portion of lease liabilities
(771
)
(791
)
(23,431
)
(22,149
)
Treasury shares reissued to employees
10,422
11,789
310,226
327,175
Distribution of cash dividends
(60,062
)
(40,752
)
(1,724,498
)
(1,147,980
)
Cash dividend regain from canceled share-based compensation
19
16
555
479
Net cash flows used in financing activities
(50,392
)
(27,366
)
(1,437,148
)
(776,078
)
Effect of exchange rate changes
3,644
606
(111,636
)
369,871
Net (decrease) increase in cash and cash equivalents
(42,027
)
8,199
(1,338,792
)
550,563
Cash and cash equivalents at beginning of period
227,137
332,433
6,975,384
9,201,743
Cash and cash equivalents at end of period
185,110
340,632
5,636,592
9,752,306
Contacts
Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com
