Parade Technologies Reports First Quarter 2022 Financial Results
Financial Highlights:
Q122 consolidated revenue US$210.72 million, compared with US$153.11 million in the year-ago quarter
Q122 consolidated net income US$59.19 million; Basic and Fully diluted after-tax EPS US$0.75 (NT$20.91) and US$0.73 (NT$20.55), 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 2022 ended March 31, 2022, and provided guidance for the second quarter of fiscal year 2022.
Consolidated revenue was US$210.72 million and consolidated net income was US$59.19 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.75 (NT$20.91) and US$0.73 (NT$20.55), respectively. These results compared to consolidated revenue US$153.11 million and consolidated net income of US$36.44 million, or US$0.46 (NT$13.13) and US$0.45 (NT$12.82) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the first quarter of 2022 consolidated revenue increased 8.48% sequentially and was up 37.63% year-over-year.
The gross profit in the first quarter of 2022 was US$100.78 million, representing an increase of 7.23% from the previous quarter and an increase of 46.06% compared to the same quarter of last year.
Based on current business outlook, Parade is providing the following guidance for the second quarter of fiscal 2022:
Revenue: US$212 ~232 Million
Gross Margin: 44.5% ~48.5%
Operating Expense: US$35 ~38 Million
The financial figures detailed above for the first quarter of 2022 have been reviewed by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (“TPEx”) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
Parade Technologies, Ltd. and Subsidiaries.
The reader is advised that these consolidated financial statements have been prepared originally in NT$ 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,
2022
2021
2022
2021
2022
2021
2022
2021
Revenue
210,723
194,255
210,723
153,107
5,898,143
5,406,120
5,898,143
4,343,653
Cost of goods sold
109,948
100,279
109,948
84,111
3,077,451
2,790,774
3,077,451
2,386,235
Gross profit
100,775
93,976
100,775
68,996
2,820,692
2,615,346
2,820,692
1,957,418
Research & development expenses
21,226
20,420
21,226
17,503
594,124
568,288
594,124
496,562
Sales & marketing expenses
8,214
8,005
8,214
6,894
229,911
222,773
229,911
195,583
General & administrative expenses
6,449
6,429
6,449
4,986
180,508
178,932
180,508
141,463
Total operating expenses
35,889
34,854
35,889
29,383
1,004,543
969,993
1,004,543
833,608
Operating income
64,886
59,122
64,886
39,613
1,816,149
1,645,353
1,816,149
1,123,810
Non-operating income and (expenses)
(30)
(170)
(30)
(419)
(825)
(4,721)
(825)
(11,888)
Income before income taxes
64,856
58,952
64,856
39,194
1,815,324
1,640,632
1,815,324
1,111,922
Income tax expense
5,669
6,352
5,669
2,759
158,689
176,784
158,689
78,263
Net income
59,187
52,600
59,187
36,435
1,656,635
1,463,848
1,656,635
1,033,659
EPS – Basic (In Dollar)
$0.75
$0.66
$0.75
$0.46
$20.91
$18.42
$20.91
$13.13
Shares used in computing EPS-Basic (In thousands)
79,212
79,491
79,212
78,701
79,212
79,491
79,212
78,701
EPS – Diluted (In Dollar)
$0.73
$0.65
$0.73
$0.45
$20.55
$18.08
$20.55
$12.82
Shares used in computing EPS-Diluted (In thousands)
80,602
80,973
80,602
80,621
80,602
80,973
80,602
80,621
UNAUDITED CONSOLIDATED BALANCE SHEETS
USD in Thousands
NTD in Thousands
As of March 31, 2022 and 2021
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2022
2021
2022
2021
Current assets
Cash & cash equivalents
340,632
284,717
9,752,306
8,125,824
Accounts receivable, net
56,022
57,088
1,603,903
1,629,283
Inventories, net
93,867
60,143
2,687,412
1,716,478
Other current assets
16,992
12,495
486,468
356,629
Total current assets
507,513
414,443
14,530,089
11,828,214
Non-current assets
Property, plant and equipment, net
17,800
16,025
509,608
457,361
Right-of-use assets
8,138
9,903
232,999
282,617
Intangible assets
108,218
112,509
3,098,289
3,210,995
Deferred income tax assets
9,653
7,563
276,374
215,861
Other non-current assets
76,667
10,187
2,194,962
290,741
Total non-current assets
220,476
156,187
6,312,232
4,457,575
Total Assets
727,989
570,630
20,842,321
16,285,789
Current Liabilities
Accounts payable
43,215
34,686
1,237,258
989,944
Other payables
40,844
29,265
1,169,376
835,217
Current income tax liabilities
24,445
16,292
699,860
464,968
Lease liabilities – current
3,487
3,406
99,818
97,203
Other current liabilities
10,716
4,150
306,815
118,469
Total current liabilities
122,707
87,799
3,513,127
2,505,801
Non-current Liabilities
Lease liabilities – non-current
4,652
6,497
133,181
185,414
Total non-current liabilities
4,652
6,497
133,181
185,414
Equity
Ordinary shares
26,742
26,615
811,956
808,125
Capital reserves
146,220
138,106
4,387,899
4,165,865
Retained earnings
492,747
359,620
14,627,390
10,924,793
Other equity
(20,527
)
(31,999
)
(1,393,138
)
(1,854,620
)
Treasury shares
(44,552
)
(16,008
)
(1,238,094
)
(449,589
)
Total equity
600,630
476,334
17,196,013
13,594,574
Total liabilities and equity
727,989
570,630
20,842,321
16,285,789
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
USD in Thousands
NTD in Thousands
For three months ended March 31, 2022 and 2021
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2022
2021
2022
2021
Cash flows from operating activities
Income before income tax for the period
64,856
39,194
1,815,324
1,111,922
Depreciation and amortization (including the right-of-use assets)
5,356
4,737
149,898
134,398
Loss on disposal of equipment
1
61
33
1,736
Share-based compensation cost
3,118
3,678
93,079
110,654
Interest income
(25
)
(35
)
(692
)
(999
)
Income and expenses having no effect on cash flows
8,450
8,441
242,318
245,789
Accounts receivable
(5,639
)
(1,655
)
(161,444
)
(47,232
)
Inventories
(18,088
)
(3,436
)
(517,868
)
(98,063
)
Other current assets
(4,598
)
704
(131,635
)
20,081
Net changes in assets relating to operating activities
(28,325
)
(4,387
)
(810,947
)
(125,214
)
Accounts payable
2,369
(8,884
)
67,838
(253,552
)
Other payables
(8,695
)
(4,879
)
(248,956
)
(139,261
)
Other current liabilities
673
(1,473
)
19,264
(42,028
)
Net changes in liabilities relating to operating activities
(5,653
)
(15,236
)
(161,854
)
(434,841
)
Cash provided by operations
39,328
28,012
1,084,841
797,656
Interest received
25
35
692
999
Income taxes paid
(333
)
(1,578
)
(9,311
)
(44,756
)
Net cash provided by operating activities
39,020
26,469
1,076,222
753,899
Cash flows from investing activities
Acquisition of equipment
(1,840
)
(4,544
)
(51,490
)
(128,909
)
Acquisition of intangible assets
(7
)
(35
)
(194
)
(989
)
Decrease in refundable deposits
24
125
693
3,562
Increase in other prepayments
(2,238
)
(302
)
(62,653
)
(8,557
)
Net cash used in investing activities
(4,061
)
(4,756
)
(113,644
)
(134,893
)
Cash flows from financing activities
Proceeds from exercise of employee stock options
2,372
131
66,397
3,724
Repayment of the principal portion of lease liabilities
(791
)
(776
)
(22,149
)
(22,004
)
Purchase of treasury shares
–
(10,038
)
–
(281,882
)
Treasury shares reissued to employees
11,789
–
327,175
–
Distribution of cash dividends
(40,752
)
(24,455
)
(1,147,980
)
(733,641
)
Cash dividend regain from canceled share-based compensation
16
7
479
199
Net cash used in financing activities
(27,366
)
(35,131
)
(776,078
)
(1,033,604
)
Effect of exchange rate changes
606
(1,011
)
364,063
20,743
Net increase (decrease) in cash and cash equivalents
8,199
(14,429
)
550,563
(393,855
)
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
340,632
284,717
9,752,306
8,125,824
Contacts
Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com
