Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the first quarter fiscal year 2019 ended March 31, 2019, and provided guidance for the second quarter of fiscal year 2019.

Consolidated revenue was US$93.72 million and consolidated net income was US$18.59 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.24 (NT$7.42) and US$0.23 (NT$7.13), respectively. These results compared to consolidated revenue US$80.65 million and consolidated net income of US$13.81 million, or US$0.18 (NT$5.30) and US$0.17 (NT$5.08) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the first quarter of 2019 consolidated revenue decreased 7.43% sequentially and was up 16.20% year-over-year.

The gross profit in the first quarter of 2019 was US$39.24 million, representing a decrease of 7.50% from the previous quarter and an increase of 19.14% compared to the same quarter of last year.

On March 6, 2019, Parade announced a new offering in its eDP Timing Controller (Tcon) embedded driver (TED) product category. The new TC3220, similar to the TC3210 introduced last year, is an IC developed for thin-profile LCD display panels. The TC3220 was developed for Chip-on-Glass (COG) applications and provides a single-chip display driver solution to replace the traditional eDP Tcon mated with separate source driver chips. The TC3220 provides a lower cost alternative to the TC3210 by not including the PSR (Panel Self Refresh) feature that requires an integrated frame buffer. The TC3220 also provides a narrower COG package dimension to reduce the display’s bottom border thickness while offering footprint compatibility with the TC3210.

On March 19, 2019, Parade introduced the TC3318, an integrated display driver and touchscreen controller solution. The TC3318 extends Parade’s TDDI (Touch and Display Driver Integrated) product family and uniquely offers a slimmer profile COG package that is optimal for space-constrained, full screen smartphone panels. This slim profile avoids the need for a more expensive Chip on Film (COF) package commonly used on bezel-less and borderless smartphone displays. Like other Parade TDDI products, the TC3318 includes Parade’s exclusive TrueTouch™ touchscreen technology.

Based on current business outlook, Parade is providing the following guidance for the second quarter of fiscal 2019:

  • Revenue: US$85 ~94 Million
  • Gross Margin: 40% ~43%
  • Operating Expense: US$20 ~21 Million

The financial figures detailed above for the first quarter of 2019 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 STATEMENTS OF
COMPREHENSIVE INCOME

 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,
2019 2018 2019 2018 2019 2018 2019 2018
 
Revenue 93,720 101,242 93,720 80,653 2,889,378 3,123,334 2,889,378 2,363,141
Cost of goods sold 54,478 58,816 54,478 47,715 1,679,571 1,814,490 1,679,571 1,398,037
Gross profit 39,242 42,426 39,242 32,939 1,209,807 1,308,844 1,209,807 965,104
Research & development expenses 12,787 12,693 12,787 12,202 394,207 391,583 394,207 357,526
Sales & marketing expenses 4,535 4,173 4,535 4,126 139,814 128,748 139,814 120,892
General & administrative expenses 3,100 2,989 3,100 2,752 95,577 92,202 95,577 80,621
Total operating expenses 20,422 19,855 20,422 19,080 629,598 612,533 629,598 559,039
Operating income 18,820 22,571 18,820 13,859 580,209 696,311 580,209 406,065
Non-operating income and expenses 525 236 525 (58) 16,201 7,277 16,201 (1,700)
Income before income taxes 19,345 22,807 19,345 13,800 596,410 703,588 596,410 404,365
Income tax expense (benefit) 755 365 755 (10) 23,273 11,248 23,273 (283)
Net income 18,590 22,442 18,590 13,810 573,137 692,340 573,137 404,648
EPS - Basic (In Dollar) $0.24 $0.29 $0.24 $0.18 $7.42 $9.01 $7.42 $5.30
Shares used in computing EPS-Basic (In thousands) 77,228 76,822 77,228 76,287 77,228 76,822 77,228 76,287
EPS - Diluted (In Dollar) $0.23 $0.28 $0.23 $0.17 $7.13 $8.66 $7.13 $5.08
Shares used in computing EPS-Diluted (In thousands) 80,332   79,965   80,332   79,653   80,332   79,965   80,332   79,653
 
   
UNAUDITED CONSOLIDATED BALANCE SHEETS USD in Thousands NTD in Thousands
As of March 31, 2019 and 2018 Mar 31,   Mar 31, Mar 31,   Mar 31,
2019 2018 2019 2018
Current assets
Cash & cash equivalents 203,678 157,611 6,277,354 4,588,044
Accounts receivable, net 51,892 53,763 1,599,309 1,565,045
Inventories, net 35,399 42,948 1,090,995 1,250,218
Other current assets 15,819   12,434   487,547   361,965  
Total current assets 306,788   266,756   9,455,205   7,765,272  
Non-current assets
Property, plant and equipment, net 10,047 8,558 309,639 249,114
Right-of-use assets 6,590 - 203,108 -
Intangible assets 82,812 87,265 2,552,250 2,540,284
Deferred income tax assets 2,239 1,592 69,009 46,345
Other non-current assets 883   846   27,232   24,619  
Total non-current assets 102,571   98,261   3,161,238   2,860,362  
Total Assets 409,359   365,017   12,616,443   10,625,634  
 
Current Liabilities
Accounts payable 23,454 24,726 722,867 719,763
Other payables 17,767 17,140 547,571 498,957
Current income tax liabilities 16,800 19,715 517,773 573,908
Lease liabilities - current 2,055 - 63,333 -
Other current liabilities 6,921   5,369   213,295   156,285  
Total current liabilities 66,997   66,950   2,064,839   1,948,913  
Non current Liabilities
Lease liabilities - non-current 4,535   -   139,775   -  
Total non current liabilities 4,535   -   139,775   -  
Equity
Ordinary shares 26,058 25,837 791,299 784,525
Capital reserves 93,031 84,799 2,812,895 2,569,165
Retained earnings 243,192 204,742 7,452,955 6,279,516
Other equity (17,862 ) (17,311 ) (441,870 ) (956,485 )
Treasury shares (6,592 ) -   (203,450 ) -  
Total equity 337,827   298,067   10,411,829   8,676,721  
Total liabilities and equity 409,359   365,017   12,616,443   10,625,634  
 
       
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS USD in Thousands NTD in Thousands
For three months ended March 31, 2019 and 2018 Mar 31, Mar 31, Mar 31, Mar 31,
2019 2018 2019 2018

Cash flows from operating activities

Income before income tax for the period 19,345 13,801 596,410 404,365
Depreciation and amortization (including the right-of-use assets) 3,661 2,791 112,876 81,775
Share-based compensation cost 2,118 1,888 65,334 55,329
Interest income (654 ) (20 ) (20,155 ) (584 )
Income and expenses having no effect on cash flows 5,125   4,659   158,055   136,520  
Accounts receivable (5,948 ) (1,491 ) (183,308 ) (43,397 )
Inventories 402 (8,673 ) 12,374 (252,482 )
Other current assets 1,753   (2,745 ) 54,016   (79,936 )
Net changes in assets relating to operating activities (3,793 ) (12,909 ) (116,918 ) (375,815 )
Accounts payable (8,172 ) (1,062 ) (251,861 ) (30,916 )
Other payables (2,581 ) (3,493 ) (79,566 ) (101,680 )
Other current liabilities (394 ) (2,912 ) (12,137 ) (84,754 )
Net changes in liabilities relating to operating activities (11,147 ) (7,467 ) (343,564 ) (217,350 )
Cash provided by (used in) operations 9,530   (1,916 ) 293,983   (52,280 )
Interest received 654 10 20,155 300
Income tax paid (235 ) (219 ) (7,238 ) (6,407 )
Net cash provided by (used in) operating activities 9,949   (2,125 ) 306,900   (58,387 )

Cash flows from investing activities

Acquisition of equipment (418 ) (451 ) (12,899 ) (13,216 )
Acquisition of intangible assets (1,620 ) (562 ) (49,944 ) (16,472 )
Increase in refundable deposits (75 ) (28 ) (2,298 ) (807 )
Net cash used in investing activities (2,113 ) (1,041 ) (65,141 ) (30,495 )

Cash flows from financing activities

Proceeds from exercise of employee stock options 337 305 10,390 8,938
Repayment of the principal portion of lease liabilities (477 ) - (14,691 ) -
Cash dividend regain from canceled share-based compensation 15   10   448   322  
Net cash used in (provided by) financing activities (125 ) 315   (3,853 ) 9,260  
Effect of exchange rate changes on cash and cash equivalents 266 407 27,520 (95,561 )
Increase (decrease) in cash and cash equivalents 7,977 (2,444 ) 265,426 (175,183 )
Cash and cash equivalents at beginning of period 195,701   160,055   6,011,928   4,763,227  
Cash and cash equivalents at end of period 203,678   157,611   6,277,354   4,588,044