Parade Technologies Reports Third Quarter 2022 Financial Results

Financial Highlights:

  • Q322 consolidated revenue US$151.04 million, compared with US$191.72 million in the year-ago quarter
  • Q322 consolidated net income US$32.64 million; Basic and Fully diluted after-tax EPS US$0.41 (NT$12.38) and US$0.40 (NT$12.21), 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 third quarter fiscal year 2022 ended September 30, 2022, and provided guidance for the fourth quarter of fiscal year 2022.

Consolidated revenue was US$151.04 million and consolidated net income was US$32.64 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.41 (NT$12.38) and US$0.40 (NT$12.21), respectively. These results compared to consolidated revenue US$191.72 million and consolidated net income of US$53.34 million, or US$0.67 (NT$18.71) and US$0.66 (NT$18.34) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the third quarter of 2022 consolidated revenue decreased 30.30% sequentially and was down 21.22% year-over-year.

The gross profit in the third quarter of 2022 was US$68.37 million, representing a decrease of 33.20% from the previous quarter and a decrease of 27.37% compared to the same quarter of last year.

On September 14, 2022, Parade announced redriver additions to its portfolio of HDMI™ 2.1/2.0 interface and signal conditioning devices. The new PS8219 HDMI 2.1 redriver and PS8210 HDMI 2.0 redriver are pin compatible with the PS8419 HDMI 2.1 retimer currently in high-volume production. The PS8419/P8219/PS8210 pin compatibility provides OEMs with the ability to quickly switch between the retimer option for best performance and the redriver option for lowest power in less challenging signaling environments. This greatly lowers the risk to OEMs for a PCB redesign at a later time, due to compliance or production issues, offering improved time-to-market for end products.

On September 7, 2022, Parade announced the availability of the PS8570 PCI Express 4.0 16Gbps linear redriver for PC, server and datacenter applications. The PS8570 features a quad-channel unidirectional linear redriver with a 2×2 crossbar switch. The PS8570 is fully compliant with the PCI Express 4.0 specification. The PS8570 features the industry’s lowest operating power for a PCIe 4 linear redriver. OEMs can enable PCIe 4 16Gbps support for power-sensitive mobile devices. The 2×2 crossbar switch allows for flexible interconnect configurations for high performance systems.

Based on current business outlook, Parade is providing the following guidance for the fourth quarter of fiscal 2022:

  • Revenue: US$100.0 ~110.0 Million
  • Gross Margin: 43.5% ~47.5%
  • Operating Expense: US$29.0 ~32.0 Million

The financial figures detailed above for the third 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 Nine Months ended Sequential Quarter Three Months ended Nine Months ended
Sep 30, Jun 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Jun 30, Sep 30, Sep 30, Sep 30, Sep 30,

2022

2022

2022

2021

2022

2021

2022

2022

2022

2021

2022

2021

 
Revenue

 

151,044

 

216,699

 

151,044

 

191,718

 

 

578,466

 

520,079

 

 

4,591,744

 

6,383,951

 

4,591,744

 

5,341,284

 

 

16,873,838

 

14,588,526

 

Cost of goods sold

 

82,671

 

114,340

 

82,671

 

97,582

 

 

306,959

 

273,460

 

 

2,513,211

 

3,368,457

 

2,513,211

 

2,718,646

 

 

8,959,119

 

7,672,505

 

Gross profit

 

68,373

 

102,359

 

68,373

 

94,136

 

 

271,507

 

246,619

 

 

2,078,533

 

3,015,494

 

2,078,533

 

2,622,638

 

 

7,914,719

 

6,916,021

 

Research & development expenses

 

21,090

 

21,483

 

21,090

 

19,875

 

 

63,799

 

56,466

 

 

641,148

 

632,873

 

641,148

 

553,710

 

 

1,868,145

 

1,584,348

 

Sales & marketing expenses

 

7,285

 

7,907

 

7,285

 

8,496

 

 

23,406

 

23,698

 

 

221,477

 

232,925

 

221,477

 

236,709

 

 

684,313

 

664,749

 

General & administrative expenses

 

5,327

 

6,549

 

5,327

 

6,322

 

 

18,325

 

17,206

 

 

161,917

 

192,942

 

161,917

 

176,126

 

 

535,367

 

482,619

 

Total operating expenses

 

33,702

 

35,939

 

33,702

 

34,693

 

 

105,530

 

97,370

 

 

1,024,542

 

1,058,740

 

1,024,542

 

966,545

 

 

3,087,825

 

2,731,716

 

Operating income

 

34,671

 

66,420

 

34,671

 

59,443

 

 

165,977

 

149,249

 

 

1,053,991

 

1,956,754

 

1,053,991

 

1,656,093

 

 

4,826,894

 

4,184,305

 

Non-operating income and (expenses)

 

1,185

 

566

 

1,185

 

(46

)

 

1,721

 

(580

)

 

36,031

 

16,662

 

36,031

 

(1,310

)

 

51,868

 

(16,404

)

Income before income taxes

 

35,856

 

66,986

 

35,856

 

59,397

 

 

167,698

 

148,669

 

 

1,090,022

 

1,973,416

 

1,090,022

 

1,654,783

 

 

4,878,762

 

4,167,901

 

Income tax expense

 

3,216

 

6,049

 

3,216

 

6,060

 

 

14,934

 

13,828

 

 

97,771

 

178,193

 

97,771

 

168,809

 

 

434,653

 

387,242

 

Net income

 

32,640

 

60,937

 

32,640

 

53,337

 

 

152,764

 

134,841

 

 

992,251

 

1,795,223

 

992,251

 

1,485,974

 

 

4,444,109

 

3,780,659

 

EPS – Basic (In Dollar)

$

0.41

$

0.76

$

0.41

$

0.67

 

$

1.92

$

1.71

 

$

12.38

$

22.51

$

12.38

$

18.71

 

$

55.74

$

47.85

 

Shares used in computing EPS-Basic (In thousands)

 

80,182

 

79,766

 

80,182

 

79,424

 

 

79,731

 

79,004

 

 

80,182

 

79,766

 

80,182

 

79,424

 

 

79,731

 

79,004

 

EPS – Diluted (In Dollar)

$

0.40

$

0.75

$

0.40

$

0.66

 

$

1.88

$

1.67

 

$

12.21

$

22.18

$

12.21

$

18.34

 

$

54.69

$

46.74

 

Shares used in computing EPS-Diluted (In thousands)

 

81,272

 

80,951

 

81,272

 

81,021

 

 

81,257

 

80,895

 

 

81,272

 

80,951

 

81,272

 

81,021

 

 

81,257

 

80,895

 

UNAUDITED CONSOLIDATED BALANCE SHEETS
As of SEPTEMBER 30, 2022 and 2021
USD in Thousands NTD in Thousands
Sep 30, Sep 30, Sep 30, Sep 30,

2022

2021

2022

2021

Current assets
Cash & cash equivalents

294,933

 

308,491

 

9,364,118

 

8,591,470

 

Accounts receivable, net

53,497

 

62,250

 

1,698,539

 

1,733,665

 

Inventories, net

134,277

 

64,104

 

4,263,286

 

1,785,302

 

Other current assets

22,471

 

15,366

 

713,475

 

427,938

 

Total current assets

505,178

 

450,211

 

16,039,418

 

12,538,375

 

Non-current assets
Property, plant and equipment, net

17,033

 

17,814

 

540,799

 

496,115

 

Right-of-use assets

6,188

 

9,236

 

196,468

 

257,237

 

Intangible assets

104,853

 

112,376

 

3,329,058

 

3,129,677

 

Deferred income tax assets

10,686

 

7,832

 

339,269

 

218,126

 

Other non-current assets

152,838

 

73,747

 

4,852,598

 

2,053,842

 

Total non-current assets

291,598

 

221,005

 

9,258,192

 

6,154,997

 

Total Assets

796,776

 

671,216

 

25,297,610

 

18,693,372

 

 
Current Liabilities
Accounts payable

34,659

 

33,820

 

1,100,435

 

941,895

 

Other payables

36,724

 

37,403

 

1,165,986

 

1,041,667

 

Current income tax liabilities

33,537

 

26,318

 

1,064,782

 

732,965

 

Lease liabilities – current

2,865

 

3,527

 

90,960

 

98,228

 

Other current liabilities

21,004

 

7,047

 

666,878

 

196,229

 

Total current liabilities

128,789

 

108,115

 

4,089,041

 

3,010,984

 

Non-current Liabilities
Lease liabilities – non-current

3,323

 

5,709

 

105,508

 

159,009

 

Total non-current liabilities

3,323

 

5,709

 

105,508

 

159,009

 

Equity
Ordinary shares

26,742

 

26,636

 

811,962

 

808,705

 

Capital reserves

137,941

 

142,192

 

4,186,139

 

4,276,273

 

Retained earnings

538,566

 

421,199

 

15,941,317

 

12,653,796

 

Other equity

(16,777

)

(27,680

)

769,771

 

(2,076,222

)

Treasury shares

(21,808

)

(4,955

)

(606,128

)

(139,173

)

Total equity

664,664

 

557,392

 

21,103,061

 

15,523,379

 

Total liabilities and equity

796,776

 

671,216

 

25,297,610

 

18,693,372

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 and 2021
USD in Thousands NTD in Thousands
Sep 30, Sep 30, Sep 30, Sep 30,

2022

2021

2022

2021

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

167,698

 

148,669

 

4,878,762

 

4,167,901

 

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

16,549

 

19,481

 

484,542

 

546,811

 

Loss on disposal of equipment

1

 

86

 

35

 

2,417

 

Share-based compensation cost

24,725

 

19,690

 

728,543

 

572,649

 

Interest income

(819

)

(74

)

(24,720

)

(2,070

)

Income and expenses having no effect on cash flows

40,456

 

39,183

 

1,188,400

 

1,119,807

 

Accounts receivable

(3,114

)

(6,817

)

(98,886

)

(189,863

)

Inventories

(58,498

)

(7,397

)

(1,857,313

)

(206,015

)

Other current assets

(34,338

)

(10,665

)

(993,127

)

(301,292

)

Net changes in assets relating to operating activities

(95,950

)

(24,879

)

(2,949,326

)

(697,170

)

Accounts payable

(6,187

)

(9,750

)

(196,425

)

(271,537

)

Other payables

(12,816

)

3,258

 

(406,910

)

90,749

 

Other current liabilities

10,960

 

1,422

 

347,992

 

39,613

 

Net changes in liabilities relating to operating activities

(8,043

)

(5,070

)

(255,343

)

(141,175

)

Cash provided by operations

104,161

 

157,903

 

2,862,493

 

4,449,363

 

Interest received

819

 

74

 

24,720

 

2,070

 

Income taxes paid

(1,313

)

(3,952

)

(38,444

)

(110,944

)

Income taxes received

19

 

2

 

565

 

52

 

Net cash generated from operating activities

103,686

 

154,027

 

2,849,334

 

4,340,541

 

Cash flows from investing activities
Acquisition of equipment

(5,042

)

(9,205

)

(147,620

)

(258,385

)

Acquisition of intangible assets

(61

)

(147

)

(1,797

)

(4,119

)

Increase in refundable deposits

(72,066

)

(66,264

)

(2,288,095

)

(1,845,447

)

Increase in other prepayments

(8,777

)

(5,383

)

(256,987

)

(151,088

)

Net cash used in investing activities

(85,946

)

(80,999

)

(2,694,499

)

(2,259,039

)

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

2,448

 

196

 

71,665

 

5,492

 

Repayment of the principal portion of lease liabilities

(2,651

)

(2,783

)

(77,636

)

(78,118

)

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

(93,720

)

(59,474

)

(2,622,127

)

(1,752,708

)

Cash dividend regain from canceled share-based compensation

63

 

42

 

1,870

 

1,269

 

Net cash used in financing activities

(59,327

)

(61,005

)

(1,667,087

)

(1,795,531

)

Effect of exchange rate changes

4,087

 

(2,678

)

1,674,627

 

(214,180

)

Net increase in cash and cash equivalents

(37,500

)

9,345

 

162,375

 

71,791

 

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

294,933

 

308,491

 

9,364,118

 

8,591,470

 

 

Contacts

Parade Technologies

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

[email protected]

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