Parade Technologies Reports Second Quarter 2022 Financial Results
Financial Highlights:
Q2 22 consolidated revenue US$216.70 million, compared with US$175.25 million in the year-ago quarter
Q2 22 consolidated net income US$60.94 million; Basic and Fully diluted after-tax EPS US$0.76 (NT$22.51) and US$0.75 (NT$22.18), 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 second quarter fiscal year 2022 ended June 30, 2022, and provided guidance for the third quarter of fiscal year 2022.
Consolidated revenue was US$216.70 million and consolidated net income was US$60.94 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.76 (NT$22.51) and US$0.75 (NT$22.18), respectively. These results compared to consolidated revenue US$175.25 million and consolidated net income of US$45.07 million, or US$0.57 (NT$15.98) and US$0.56 (NT$15.62) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the second quarter of 2022 consolidated revenue increased 2.84% sequentially and was up 23.65% year-over-year.
The gross profit in the second quarter of 2022 was US$102.36 million, representing an increase of 1.57% from the previous quarter and an increase of 22.60% compared to the same quarter of last year.
Based on current business outlook, Parade is providing the following guidance for the third quarter of fiscal 2022:
Revenue: US$150 ~166 Million
Gross Margin: 44.5% ~48.5%
Operating Expense: US$35 ~38 Million
The financial figures detailed above for the second quarter of 2022 have been audited by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (“TPEx”) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
Parade Technologies, Ltd. and Subsidiaries.
The reader is advised that these consolidated financial statements have been prepared originally in NT$ 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
USD in Thousands
NTD in Thousands
Sequential Quarter
Three Months ended
Six Months ended
Sequential Quarter
Three Months ended
Six Months ended
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
Jun 30,
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
Jun 30,
2022
2022
2022
2021
2022
2021
2022
2022
2022
2021
2022
2021
Revenue
216,699
210,723
216,699
175,254
427,422
328,361
6,383,951
5,898,143
6,383,951
4,903,589
12,282,094
9,247,242
Cost of goods sold
114,340
109,948
114,340
91,767
224,288
175,878
3,368,457
3,077,451
3,368,457
2,567,624
6,445,908
4,953,859
Gross profit
102,359
100,775
102,359
83,487
203,134
152,483
3,015,494
2,820,692
3,015,494
2,335,965
5,836,186
4,293,383
Research & development expenses
21,483
21,226
21,483
19,088
42,709
36,591
632,873
594,124
632,873
534,076
1,226,997
1,030,638
Sales & marketing expenses
7,907
8,214
7,907
8,308
16,121
15,202
232,925
229,911
232,925
232,457
462,836
428,040
General & administrative expenses
6,549
6,449
6,549
5,898
12,998
10,884
192,942
180,508
192,942
165,030
373,450
306,493
Total operating expenses
35,939
35,889
35,939
33,294
71,828
62,677
1,058,740
1,004,543
1,058,740
931,563
2,063,283
1,765,171
Operating income
66,420
64,886
66,420
50,193
131,306
89,806
1,956,754
1,816,149
1,956,754
1,404,402
3,772,903
2,528,212
Non-operating income and (expenses)
566
(30
)
566
(115
)
536
(534
)
16,662
(825
)
16,662
(3,206
)
15,837
(15,094
)
Income before income taxes
66,986
64,856
66,986
50,078
131,842
89,272
1,973,416
1,815,324
1,973,416
1,401,196
3,788,740
2,513,118
Income tax expense
6,049
5,669
6,049
5,009
11,718
7,768
178,193
158,689
178,193
140,170
336,882
218,433
Net income
60,937
59,187
60,937
45,069
120,124
81,504
1,795,223
1,656,635
1,795,223
1,261,026
3,451,858
2,294,685
EPS – Basic (In Dollar)
$0.76
$0.75
$0.76
$0.57
$1.51
$1.03
$22.51
$20.91
$22.51
$15.98
$43.42
$29.12
Shares used in computing EPS-Basic (In thousands)
79,766
79,212
79,766
78,914
79,496
78,808
79,766
79,212
79,766
78,914
79,496
78,808
EPS – Diluted (In Dollar)
$0.75
$0.73
$0.75
$0.56
$1.48
$1.01
$22.18
$20.55
$22.18
$15.62
$42.67
$28.42
Shares used in computing EPS-Diluted (In thousands)
80,951
80,602
80,951
80,735
80,905
80,732
80,951
80,602
80,951
80,735
80,905
80,732
CONSOLIDATED BALANCE SHEETS
USD in Thousands
NTD in Thousands
As of June 30, 2022 and 2021
Jun 30,
Jun 30,
Jun 30,
Jun 30,
2022
2021
2022
2021
Current assets
Cash & cash equivalents
408,717
285,336
12,147,059
7,949,466
Accounts receivable, net
71,597
58,787
2,127,869
1,637,799
Inventories, net
107,911
60,448
3,207,122
1,684,077
Other current assets
25,492
18,279
757,629
509,243
Total current assets
613,717
422,850
18,239,679
11,780,585
Non-current assets
Property, plant and equipment, net
17,920
16,276
532,593
453,465
Right-of-use assets
6,759
9,489
200,863
264,360
Intangible assets
106,129
114,072
3,154,145
3,178,062
Deferred income tax assets
10,232
8,117
304,090
226,142
Other non-current assets
78,140
73,918
2,322,312
2,059,345
Total non-current assets
219,180
221,872
6,514,003
6,181,374
Total Assets
832,897
644,722
24,753,682
17,961,959
Current Liabilities
Accounts payable
56,079
36,860
1,666,672
1,026,922
Other payables
100,695
70,978
2,892,562
2,020,870
Current income tax liabilities
30,317
21,099
901,030
587,826
Lease liabilities – current
3,037
3,397
90,253
94,628
Other current liabilities
13,823
4,007
410,818
111,645
Total current liabilities
203,951
136,341
5,961,335
3,841,891
Non-current Liabilities
Lease liabilities – non-current
3,722
6,092
110,610
169,732
Total non-current liabilities
3,722
6,092
110,610
169,732
Equity
Ordinary shares
26,740
26,636
811,895
808,705
Capital reserves
138,074
142,358
4,188,380
4,281,780
Retained earnings
500,731
369,703
14,948,952
11,167,756
Other equity
(18,513
)
(31,453
)
(661,362
)
(2,168,732
)
Treasury shares
(21,808
)
(4,955
)
(606,128
)
(139,173
)
Total equity
625,224
502,289
18,681,737
13,950,336
Total liabilities and equity
832,897
644,722
24,753,682
17,961,959
CONSOLIDATED STATEMENTS OF CASH FLOWS
USD in Thousands
NTD in Thousands
FOR THE SIX MONTHS ENDED JUNE 30, 2022 and 2021
Jun 30,
Jun 30,
Jun 30,
Jun 30,
2022
2021
2022
2021
Cash flows from operating activities
Income before income tax for the period
131,842
89,272
3,788,740
2,513,118
Depreciation and amortization (including the right-of-use assets)
11,081
12,225
318,238
344,389
Loss on disposal of equipment
1
63
34
1,776
Share-based compensation cost
16,451
13,356
479,230
389,558
Interest income
(158
)
(49
)
(4,627
)
(1,392
)
Income and expenses having no effect on cash flows
27,375
25,595
792,875
734,331
Accounts receivable
(21,214
)
(3,354
)
(630,493
)
(93,442
)
Inventories
(32,133
)
(3,741
)
(954,979
)
(104,223
)
Other current assets
(31,800
)
(10,554
)
(893,882
)
(298,189
)
Net changes in assets relating to operating activities
(85,147
)
(17,649
)
(2,479,354
)
(495,854
)
Accounts payable
15,233
(6,710
)
452,730
(186,946
)
Other payables
(1,814
)
1,814
(53,915
)
50,543
Other current liabilities
3,779
(1,616
)
112,320
(45,027
)
Net changes in liabilities relating to operating activities
17,198
(6,512
)
511,135
(181,430
)
Cash provided by operations
91,268
90,706
2,613,396
2,570,165
Interest received
158
49
4,627
1,392
Income taxes paid
(816
)
(1,999
)
(23,433
)
(56,326
)
Income taxes received
19
2
554
53
Net cash generated from operating activities
90,629
88,758
2,595,144
2,515,284
Cash flows from investing activities
Acquisition of equipment
(3,854
)
(6,157
)
(110,678
)
(173,444
)
Acquisition of intangible assets
(34
)
(81
)
(977
)
(2,292
)
Decrease (increase) in refundable deposits
74
(66,311
)
2,193
(1,847,422
)
Increase in other prepayments
(4,552
)
(3,938
)
(130,729
)
(110,926
)
Net cash used in investing activities
(8,366
)
(76,487
)
(240,191
)
(2,134,084
)
Cash flows from financing activities
Proceeds from exercise of employee stock options
2,376
143
68,228
4,036
Repayment of the principal portion of lease liabilities
(1,931
)
(2,018
)
(55,475
)
(56,844
)
Purchase of treasury shares
–
(10,038
)
–
(281,882
)
Treasury shares reissued to employees
34,533
11,052
959,141
310,416
Distribution of cash dividends
(40,752
)
(24,455
)
(1,147,980
)
(733,641
)
Cash dividend regain from canceled share-based compensation
52
40
1,517
1,203
Net cash used in financing activities
(5,722
)
(25,276
)
(174,569
)
(756,712
)
Effect of exchange rate changes
(257
)
(805
)
764,932
(194,701
)
Net increase (decrease) in cash and cash equivalents
76,284
(13,810
)
2,945,316
(570,213
)
Cash and cash equivalents at beginning of period
332,433
299,146
9,201,743
8,519,679
Cash and cash equivalents at end of period
408,717
285,336
12,147,059
7,949,466
Contacts
Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com
