Parade Technologies Reports Fourth Quarter and Fiscal 2021 Financial Results

Financial Highlights:

  • Q421 consolidated revenue US$194.26 million, compared with US$148.29 million in the year-ago quarter
  • Q421 consolidated net income US$52.60 million; Basic and Fully diluted after-tax EPS US$0.66 (NT$18.42) and US$0.65 (NT$18.08), 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 2021 ended December 31, 2021, and provided guidance for the first quarter of fiscal year 2022.

Consolidated revenue was US$194.26 million and consolidated net income was US$52.60 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.66 (NT$18.42) and US$0.65 (NT$18.08), respectively. These results compared to consolidated revenue US$148.29 million and consolidated net income of US$33.29 million, or US$0.42 (NT$12.12) and US$0.41 (NT$11.88) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the fourth quarter of 2021 consolidated revenue increased 1.32% sequentially and was up 31.00% year-over-year.

The gross profit in the fourth quarter of 2021 was US$93.98 million, representing a decrease of 0.17% from the previous quarter and an increase of 45.56% compared to the same quarter of last year.

The Company also reported financial results for fiscal year 2021. Consolidated revenue was US$714.33 million, representing an increase of 37.81% from US$518.34 million in the prior year. Gross profit was US$340.60 million and operating income was US$208.37 million. Net income for fiscal year 2021 was 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. These results compared with net income of US$118.95 million, or US$1.52 (NT$44.86) per basic share and US$1.48 (NT$43.73) 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 2022:

  • Revenue: US$193.5 ~212.5 Million
  • Gross Margin: 44.5% ~48.5%
  • Operating Expense:
  • US$33 ~36 Million

The financial figures detailed above for the fourth quarter of 2021 and for the year ended December 31, 2021 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,

2021

 

2021

 

2021

 

2020

 

2021

 

2020

 

2021

 

2021

 

2021

 

2020

 

2021

 

2020

         
Revenue

 

        194,255

 

 

          191,718

 

 

            194,255

 

 

               148,287

 

 

            714,334

 

 

         518,336

 

 

        5,406,120

 

 

        5,341,284

 

 

        5,406,120

 

 

         4,263,263

 

 

          19,994,646

 

 

          15,279,588

Cost of goods sold

 

        100,279

 

 

            97,582

 

 

            100,279

 

 

                 83,727

 

 

            373,739

 

 

         289,999

 

 

        2,790,774

 

 

        2,718,646

 

 

        2,790,774

 

 

         2,407,154

 

 

          10,463,279

 

 

            8,547,608

Gross profit

 

          93,976

 

 

            94,136

 

 

              93,976

 

 

                 64,560

 

 

            340,595

 

 

         228,337

 

 

        2,615,346

 

 

        2,622,638

 

 

        2,615,346

 

 

         1,856,109

 

 

            9,531,367

 

 

            6,731,980

Research & development expenses

 

          20,420

 

 

            19,875

 

 

              20,420

 

 

                 17,094

 

 

              76,886

 

 

           62,633

 

 

           568,288

 

 

           553,710

 

 

           568,288

 

 

            491,457

 

 

            2,152,636

 

 

            1,848,443

Sales & marketing expenses

 

            8,005

 

 

              8,496

 

 

                8,005

 

 

                   6,671

 

 

              31,703

 

 

           23,187

 

 

           222,773

 

 

           236,709

 

 

           222,773

 

 

            191,796

 

 

               887,522

 

 

               683,701

General & administrative expenses

 

            6,429

 

 

              6,322

 

 

                6,429

 

 

                   4,686

 

 

              23,635

 

 

           17,483

 

 

           178,932

 

 

           176,126

 

 

           178,932

 

 

            134,724

 

 

               661,551

 

 

               515,969

Total operating expenses

 

          34,854

 

 

            34,693

 

 

              34,854

 

 

                 28,451

 

 

            132,224

 

 

         103,303

 

 

           969,993

 

 

           966,545

 

 

           969,993

 

 

            817,977

 

 

            3,701,709

 

 

            3,048,113

Operating income

 

          59,122

 

 

            59,443

 

 

              59,122

 

 

                 36,109

 

 

            208,371

 

 

         125,034

 

 

        1,645,353

 

 

        1,656,093

 

 

        1,645,353

 

 

         1,038,132

 

 

            5,829,658

 

 

            3,683,867

Non-operating income and (expenses)

 

              (170

)

 

                 (46

)

 

                  (170

)

 

                     (388

)

 

                  (750

)

 

                485

 

 

              (4,721

)

 

              (1,310

)

 

              (4,721

)

 

             (11,147

)

 

                (21,125

)

 

                 15,160

Income before income taxes

 

          58,952

 

 

            59,397

 

 

              58,952

 

 

                 35,721

 

 

            207,621

 

 

         125,519

 

 

        1,640,632

 

 

        1,654,783

 

 

        1,640,632

 

 

         1,026,985

 

 

            5,808,533

 

 

            3,699,027

Income tax expense

 

            6,352

 

 

              6,060

 

 

                6,352

 

 

                   2,429

 

 

              20,180

 

 

             6,571

 

 

           176,784

 

 

           168,809

 

 

           176,784

 

 

              69,815

 

 

               564,026

 

 

               193,231

Net income

 

          52,600

 

 

            53,337

 

 

              52,600

 

 

                 33,292

 

 

            187,441

 

 

         118,948

 

 

        1,463,848

 

 

        1,485,974

 

 

        1,463,848

 

 

            957,170

 

 

            5,244,507

 

 

            3,505,796

EPS – Basic (In Dollar)

$

0.66

 

$

0.67

 

$

0.66

 

$

0.42

 

$

2.37

 

$

1.52

 

$

18.42

 

$

18.71

 

$

18.42

 

$

12.12

 

$

66.29

 

$

44.86

Shares used in computing EPS-Basic (In thousands)

 

          79,491

 

 

            79,424

 

#

 

              79,491

 

 

                 78,955

 

 

              79,114

 

 

           78,156

 

 

             79,491

 

 

             79,424

 

 

             79,491

 

 

              78,955

 

 

                 79,114

 

 

                 78,156

EPS – Diluted (In Dollar)

$

0.65

 

$

0.66

 

$

0.65

 

$

0.41

 

$

2.32

 

$

1.48

 

$

18.08

 

$

18.34

 

$

18.08

 

$

11.88

 

$

64.79

 

$

43.73

Shares used in computing EPS-Diluted (In thousands)

 

          80,973

 

 

 

            81,021

 

 

 

              80,973

 

 

 

                 80,562

 

 

 

              80,952

 

 

 

           80,161

 

 

             80,973

 

 

 

             81,021

 

 

 

             80,973

 

 

 

              80,562

 

 

 

                 80,952

 

 

 

                 80,161

UNAUDITED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2021 AND 2020
USD in Thousands NTD in Thousands
Dec 31, Dec 31, Dec 31, Dec 31,

2021

2020

2021

2020

Current assets
Cash & cash equivalents

        332,433

 

          299,146

 

         9,201,743

 

            8,519,679

 

Accounts receivable, net

          50,383

 

            55,433

 

         1,394,595

 

            1,578,725

 

Inventories, net

          75,779

 

            56,707

 

         2,097,554

 

            1,615,012

 

Other current assets

          21,203

 

            16,998

 

            586,897

 

               484,108

 

Total current assets

        479,798

 

          428,284

 

       13,280,789

 

          12,197,524

 

Non-current assets
Property, plant and equipment, net

          17,625

 

            12,874

 

            487,868

 

               366,648

 

Right-of-use assets

            8,474

 

              8,771

 

            234,571

 

               249,796

 

Intangible assets

        109,979

 

          112,754

 

         3,044,207

 

            3,211,223

 

Deferred income tax assets

            8,817

 

              6,694

 

            244,042

 

               190,661

 

Other non-current assets

          75,636

 

            12,385

 

         2,093,609

 

               352,725

 

Total non-current assets

        220,531

 

          153,478

 

         6,104,297

 

            4,371,053

 

Total Assets

        700,329

 

          581,762

 

       19,385,086

 

          16,568,577

 

 
Current Liabilities
Accounts payable

          40,846

 

            43,570

 

         1,130,616

 

            1,240,882

 

Other payables

          90,291

 

            58,599

 

         2,519,249

 

            1,706,070

 

Current income tax liabilities

          27,474

 

            18,538

 

            760,472

 

               527,976

 

Lease liabilities – current

            3,575

 

              2,662

 

              98,945

 

                 75,801

 

Other current liabilities

          10,043

 

              5,624

 

            278,009

 

               160,159

 

Total current liabilities

        172,229

 

          128,993

 

         4,787,291

 

            3,710,888

 

Non-current Liabilities
Lease liabilities – non-current

            4,900

 

              6,109

 

            135,625

 

               173,995

 

Total non-current liabilities

            4,900

 

              6,109

 

            135,625

 

               173,995

 

Equity        
Ordinary shares

          26,634

 

            26,604

 

            808,638

 

               807,803

 

Capital reserves

        143,754

 

          137,586

 

         4,319,491

 

            4,152,210

 

Retained earnings

        433,068

 

          324,547

 

       12,970,276

 

            9,890,935

 

Other equity

         (23,915

)

          (36,108

)

        (2,070,966

)

           (1,999,547

)

Treasury shares

         (56,341

)

            (5,969

)

        (1,565,269

)

              (167,707

)

Total equity

        523,200

 

          446,660

 

       14,462,170

 

          12,683,694

 

Total liabilities and equity

        700,329

 

          581,762

 

       19,385,086

 

          16,568,577

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020
USD in Thousands  NTD in Thousands 
Dec 31, Dec 31, Dec 31, Dec 31,

2021

2020

2021

2020

Cash flows from operating activities
Income before income tax for the year

        207,621

 

          125,519

 

         5,808,533

 

            3,699,027

 

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

          25,509

 

            16,244

 

            714,503

 

               480,020

 

Loss on disposal of equipment

                 86

 

                     –

 

                2,417

 

                           –

 

Share-based compensation cost

          14,303

 

            18,783

 

            424,619

 

               566,708

 

Interest income

                (96

)

               (963

)

               (2,685

)

                (28,885

)

Income and expenses having no effect on cash flows

          39,802

 

            34,064

 

         1,138,854

 

            1,017,843

 

Accounts receivable

            5,050

 

          (15,488

)

            139,785

 

              (441,109

)

Inventories

         (19,072

)

          (25,226

)

           (527,908

)

              (718,449

)

Other current assets

               804

 

            (6,271

)

              22,249

 

              (178,585

)

Net changes in assets relating to operating activities

         (13,218

)

          (46,985

)

           (365,874

)

           (1,338,143

)

Accounts payable

           (2,724

)

            17,347

 

             (75,409

)

               494,026

 

Other payables

          15,396

 

              9,505

 

            426,155

 

               270,701

 

Other current liabilities

            4,420

 

               (718

)

            122,349

 

                (20,439

)

Net changes in liabilities relating to operating activities

          17,092

 

            26,134

 

            473,095

 

               744,288

 

Cash provided by operations

        251,297

 

          138,733

 

         7,054,608

 

            4,123,015

 

Interest received

                 96

 

                 963

 

                2,685

 

                 28,459

 

Income taxes paid

         (17,010

)

          (11,844

)

           (476,455

)

              (349,981

)

Income taxes received

                   2

 

                     –

 

                     52

 

                        13

Net cash provided by operating activities

        234,385

 

          127,852

 

         6,580,890

 

            3,801,506

 

Cash flows from investing activities
Acquisition of equipment

         (10,584

)

            (7,680

)

           (296,457

)

              (226,959

)

Acquisition of intangible assets

              (395

)

            (6,102

)

             (11,065

)

                  (7,508

)

Increase in refundable deposits

         (66,269

)

               (322

)

        (1,834,320

)

                  (9,182

)

Increase in other prepayments

           (7,968

)

            (8,725

)

           (223,186

)

              (257,825

)

Acquisition of business combinations

                    –

 

          (37,169

)

                        –

 

           (1,112,458

)

Net cash used in investing activities

         (85,216

)

          (59,998

)

        (2,365,028

)

           (1,613,932

)

Cash flows from financing activities
Proceeds from exercise of employee stock options

               271

 

                 529

 

                7,583

 

                 15,632

 

Repayment of the principal portion of lease liabilities

           (3,899

)

            (2,560

)

           (109,202

)

                (75,647

)

Purchase of treasury shares

         (61,424

)

            (5,969

)

        (1,707,978

)

              (167,707

)

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

                 62

 

                   56

 

                1,881

 

                   1,685

Net cash used in financing activities

       (113,412

)

          (44,017

)

        (3,250,008

)

           (1,341,199

)

Effect of exchange rate changes on cash and cash equivalents

           (2,470

)

              4,930

 

           (283,790

)

              (432,696

)

Net increase in cash and cash equivalents

          33,287

 

            28,766

 

            682,064

 

               413,679

 

Cash and cash equivalents at beginning of year

        299,146

 

          270,380

 

         8,519,679

 

            8,106,000

 

Cash and cash equivalents at end of year

        332,433

 

          299,146

 

         9,201,743

 

            8,519,679

 

 

Contacts

Parade Technologies

Yo-Ming Chang, +886-2-2627-9109

[email protected]

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