PARADE TECHNOLOGIES, LTD. 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 2023 ended December 31, 2023, and provided guidance for the first quarter of fiscal year 2024.
Consolidated revenue was US$120.13 million and consolidated net income was US$20.06 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.25 (NT$8.05) and US$0.25 (NT$8.02), respectively. These results compared to consolidated revenue US$101.45 million and consolidated net income of US$14.48 million, or US$0.18 (NT$5.67) and US$0.18 (NT$5.60) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the fourth quarter of 2023 consolidated revenue increased 2.71% sequentially and was up 18.41% year-over-year.
The gross profit in the fourth quarter of 2023 was US$51.91 million, representing an increase of 1.44% from the previous quarter and an increase of 16.19% compared to the same quarter of last year.
The Company also reported financial results for fiscal year 2023. Consolidated revenue was US$441.25 million, representing a decrease of 35.10% from US$679.92 million in the prior year. Gross profit was US$192.93 million and operating income was US$62.87 million. Net income for fiscal year 2023 was US$64.97 million, or US$0.82 (NT$25.73) per basic share and US$0.82 (NT$25.55) per fully diluted share. These results compared with net income of US$167.25 million, or US$2.09 (NT$61.35) per basic share and US$2.06 (NT$60.35) 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 2024:
- Revenue: US$114.0 ~126.0 Million
- Gross Margin: 43% ~47%
- Operating Expense: US$32.5 ~35.5 Million
On November 29, 2023, Parade announced two new eDP Tcon devices DP821 and DP823 that comply to the newly released eDP v1.5 Standard. Systems utilizing eDP version v1.5 start production in 2024 and Parade’s new devices target the main-stream, high-volume display market. 120Hz is trending as the major frame rate for both consumer and commercial premium NB models. The DP821 supports display resolutions up to WQXGA (2560×1600) @120Hz, and the DP823 supports up to WUXGA (1920×1200) @120Hz. The DP821 and DP823 provide full eDP v1.5 functionality including Early Transport, Panel Replay (PR) which is the preferred function to use for Panel Self Refresh and other advanced features including GPU brand-specific variants. Both DP821 and DP823 support 30-bit input and global dimming for DisplayHDR 400 performance. The new DP821 and DP823 devices offer backward compatibility with eDP 1.4b and earlier devices as well as compatibility with Source devices compliant to the new specification.
On December 6, 2023, Parade announced the availability of the PS8481/PS8483 DP 2.1 2:1 retiming MUX/retimer family, and the PS8431 HDMI 2.1 2:1 retiming MUX for commercial and consumer PCs, host systems and peripherals. PS8481 and PS8483 support DisplayPort 2.1 up to UHBR20 20Gbps per lane, delivering up to 80Gbps total bandwidth. The devices are fully compliant with VESA DP 2.1 standard. PS8431, in compliance with HDMI 2.1 specification, features FRL support up to 12Gbps and backward compatibility with TMDS up to 6Gbps. The devices support low power consumption for standby and low power states, greatly extending the battery life of mobile devices and enabling system EnergyStar compliance.
The financial figures detailed above for the fourth quarter of 2023 and for the year ended December 31, 2023 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, | |||||||||||||
2023 | 2023 | 2023 | 2022 | 2023 | 2022 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | 120,126 | 116,959 | 120,126 | 101,450 | 441,253 | 679,916 | 3,824,814 | 3,705,248 | 3,824,814 | 3,181,446 | 13,769,072 | 20,055,284 | ||||||||||||
| Cost of goods sold | 68,215 | 65,785 | 68,215 | 56,774 | 248,327 | 363,733 | 2,171,953 | 2,084,065 | 2,171,953 | 1,780,425 | 7,749,660 | 10,739,544 | ||||||||||||
| Gross profit | 51,911 | 51,174 | 51,911 | 44,676 | 192,926 | 316,183 | 1,652,861 | 1,621,183 | 1,652,861 | 1,401,021 | 6,019,412 | 9,315,740 | ||||||||||||
| Research & development expenses | 20,880 | 21,911 | 20,880 | 20,074 | 82,976 | 83,873 | 664,826 | 694,131 | 664,826 | 629,511 | 2,586,872 | 2,497,656 | ||||||||||||
| Sales & marketing expenses | 7,399 | 6,647 | 7,399 | 6,469 | 28,432 | 29,875 | 235,593 | 210,593 | 235,593 | 202,857 | 885,740 | 887,170 | ||||||||||||
| General & administrative expenses | 4,500 | 4,268 | 4,500 | 4,114 | 18,649 | 22,439 | 143,259 | 135,108 | 143,259 | 129,023 | 580,273 | 664,390 | ||||||||||||
| Expected credit gain | - | (84) | - | - | - | - | - | (2,549) | - | - | - | - | ||||||||||||
| Total operating expenses | 32,779 | 32,742 | 32,779 | 30,657 | 130,057 | 136,187 | 1,043,678 | 1,037,283 | 1,043,678 | 961,391 | 4,052,885 | 4,049,216 | ||||||||||||
| Operating income | 19,132 | 18,432 | 19,132 | 14,019 | 62,869 | 179,996 | 609,183 | 583,900 | 609,183 | 439,630 | 1,966,527 | 5,266,524 | ||||||||||||
| Non-operating income | 2,519 | 2,386 | 2,519 | 1,800 | 8,228 | 3,521 | 80,201 | 75,605 | 80,201 | 56,441 | 257,447 | 108,309 | ||||||||||||
| Income before income taxes | 21,651 | 20,818 | 21,651 | 15,819 | 71,097 | 183,517 | 689,384 | 659,505 | 689,384 | 496,071 | 2,223,974 | 5,374,833 | ||||||||||||
| Income tax expense | 1,594 | 1,502 | 1,594 | 1,335 | 6,124 | 16,269 | 50,738 | 47,577 | 50,738 | 41,861 | 190,840 | 476,514 | ||||||||||||
| Net income | 20,057 | 19,316 | 20,057 | 14,484 | 64,973 | 167,248 | 638,646 | 611,928 | 638,646 | 454,210 | 2,033,134 | 4,898,319 | ||||||||||||
| EPS - Basic (In Dollar) | $0.25 | $0.24 | $0.25 | $0.18 | $0.82 | $2.09 | $8.05 | $7.71 | $8.05 | $5.67 | $25.73 | $61.35 | ||||||||||||
| Shares used in computing EPS-Basic (In thousands) | 79,353 | 79,318 | 79,353 | 80,160 | 79,011 | 79,845 | 79,353 | 79,318 | 79,353 | 80,160 | 79,011 | 79,845 | ||||||||||||
| EPS - Diluted (In Dollar) | $0.25 | $0.24 | $0.25 | $0.18 | $0.82 | $2.06 | $8.02 | $7.68 | $8.02 | $5.60 | $25.55 | $60.35 | ||||||||||||
| Shares used in computing EPS-Diluted (In thousands) | 79,650 | 79,639 | 79,650 | 81,067 | 79,578 | 81,160 | 79,650 | 79,639 | 79,650 | 81,067 | 79,578 | 81,160 | ||||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS As of DECEMBER 31, 2023 and 2022 | USD in Thousands | NTD in Thousands | ||||||||||||||||||||||
| Dec 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||
| Cash & cash equivalents | 276,379 | 227,137 | 8,487,601 | 6,975,384 | ||||||||||||||||||||
| Accounts receivable, net | 54,103 | 34,707 | 1,661,511 | 1,065,863 | ||||||||||||||||||||
| Inventories, net | 122,885 | 145,493 | 3,773,792 | 4,468,087 | ||||||||||||||||||||
| Other current assets | 19,419 | 20,236 | 596,344 | 621,454 | ||||||||||||||||||||
| Total current assets | 472,786 | 427,573 | 14,519,248 | 13,130,788 | ||||||||||||||||||||
| Non-current assets | ||||||||||||||||||||||||
| Property, plant and equipment, net | 12,768 | 16,136 | 392,101 | 495,523 | ||||||||||||||||||||
| Right-of-use assets | 8,409 | 5,302 | 258,252 | 162,812 | ||||||||||||||||||||
| Intangible assets | 98,528 | 103,038 | 3,025,792 | 3,164,291 | ||||||||||||||||||||
| Deferred income tax assets | 12,704 | 11,621 | 390,134 | 356,894 | ||||||||||||||||||||
| Other non-current assets | 155,748 | 155,044 | 4,783,027 | 4,761,390 | ||||||||||||||||||||
| Total non-current assets | 288,157 | 291,141 | 8,849,306 | 8,940,910 | ||||||||||||||||||||
| Total Assets | 760,943 | 718,714 | 23,368,554 | 22,071,698 | ||||||||||||||||||||
| Current Liabilities | ||||||||||||||||||||||||
| Accounts payable | 51,028 | 13,003 | 1,567,047 | 399,308 | ||||||||||||||||||||
| Other payables | 44,837 | 100,624 | 1,374,728 | 2,970,174 | ||||||||||||||||||||
| Current income tax liabilities | 11,415 | 12,846 | 350,551 | 394,513 | ||||||||||||||||||||
| Lease liabilities - current | 3,241 | 2,656 | 99,534 | 81,569 | ||||||||||||||||||||
| Other current liabilities | 7,081 | 13,474 | 217,468 | 413,782 | ||||||||||||||||||||
| Total current liabilities | 117,602 | 142,603 | 3,609,328 | 4,259,346 | ||||||||||||||||||||
| Non-current Liabilities | ||||||||||||||||||||||||
| Lease liabilities - non-current | 5,168 | 2,646 | 158,718 | 81,243 | ||||||||||||||||||||
| Total non-current liabilities | 5,168 | 2,646 | 158,718 | 81,243 | ||||||||||||||||||||
| Equity | ||||||||||||||||||||||||
| Ordinary shares | 26,731 | 26,740 | 811,636 | 811,913 | ||||||||||||||||||||
| Capital reserves | 136,477 | 138,110 | 4,158,670 | 4,192,921 | ||||||||||||||||||||
| Retained earnings | 526,348 | 492,999 | 15,601,516 | 14,671,389 | ||||||||||||||||||||
| Other equity | (6,722) | (14,299) | 422,135 | 208,496 | ||||||||||||||||||||
| Treasury shares | (44,661) | (70,085) | (1,393,449) | (2,153,610) | ||||||||||||||||||||
| Total equity | 638,173 | 573,465 | 19,600,508 | 17,731,109 | ||||||||||||||||||||
| Total liabilities and equity | 760,943 | 718,714 | 23,368,554 | 22,071,698 | ||||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2023 and 2022 | USD in Thousands | NTD in Thousands | ||||||||||||||||||||||
| Dec 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
| Cash flows from operating activities | ||||||||||||||||||||||||
| Income before income tax for the year | 71,097 | 183,517 | 2,223,974 | 5,374,833 | ||||||||||||||||||||
| Depreciation and amortization (including the right-of-use assets) | 21,824 | 21,960 | 679,821 | 654,416 | ||||||||||||||||||||
| Loss on disposal of equipment | - | 665 | - | 35 | ||||||||||||||||||||
| Loss on disposal of intangible assets | 263 | 1 | 8,191 | 19,817 | ||||||||||||||||||||
| Share-based compensation cost | 33,480 | 32,529 | 1,029,044 | 969,164 | ||||||||||||||||||||
| Interest income | (7,135) | (2,069) | (223,099) | (63,911) | ||||||||||||||||||||
| Income and expenses having no effect on cash flows | 48,432 | 53,086 | 1,493,957 | 1,579,521 | ||||||||||||||||||||
| Accounts receivable | (19,396) | 15,675 | (595,648) | 481,391 | ||||||||||||||||||||
| Inventories | 22,608 | (69,714) | 694,295 | (2,140,923) | ||||||||||||||||||||
| Other current assets | (26,653) | (37,354) | (815,386) | (1,078,797) | ||||||||||||||||||||
| Net changes in assets relating to operating activities | (23,441) | (91,393) | (716,739) | (2,738,329) | ||||||||||||||||||||
| Accounts payable | 38,025 | (27,843) | 1,167,739 | (855,072) | ||||||||||||||||||||
| Other payables | (8,526) | (8,977) | (261,819) | (275,698) | ||||||||||||||||||||
| Other current liabilities | (6,392) | 3,430 | (196,314) | 105,341 | ||||||||||||||||||||
| Net changes in liabilities relating to operating activities | 23,107 | (33,390) | 709,606 | (1,025,429) | ||||||||||||||||||||
| Cash inflow generated from operations | 119,195 | 111,820 | 3,710,798 | 3,190,596 | ||||||||||||||||||||
| Interest received | 7,135 | 2,069 | 223,099 | 63,911 | ||||||||||||||||||||
| Income taxes paid | (7,365) | (24,117) | (229,410) | (718,678) | ||||||||||||||||||||
| Income taxes received | - | 242 | - | 7,219 | ||||||||||||||||||||
| Net cash provided by operating activities | 118,965 | 90,014 | 3,704,487 | 2,543,048 | ||||||||||||||||||||
| Cash flows from investing activities | ||||||||||||||||||||||||
| Acquisition of equipment | (4,078) | (5,757) | (127,044) | (171,548) | ||||||||||||||||||||
| Acquisition of intangible assets | (525) | (466) | (16,342) | (13,901) | ||||||||||||||||||||
| Decrease (increase) in refundable deposits | 7,670 | (72,127) | 235,551 | (2,215,017) | ||||||||||||||||||||
| Increase in other prepayments | (14,601) | (11,997) | (454,827) | (357,512) | ||||||||||||||||||||
| Net cash flows used in investing activities | (11,534) | (90,347) | (362,662) | (2,757,978) | ||||||||||||||||||||
| Cash flows from financing activities | ||||||||||||||||||||||||
| Proceeds from exercise of employee stock options | - | 2,448 | - | 72,937 | ||||||||||||||||||||
| Repayment of the principal portion of lease liabilities | (3,425) | (3,663) | (106,693) | (109,154) | ||||||||||||||||||||
| Purchase of treasury shares | - | (48,277) | - | (1,547,482) | ||||||||||||||||||||
| Proceeds from exercise of disgorgement | - | - | - | 11 | ||||||||||||||||||||
| Treasury shares reissued to employees | 25,424 | 34,533 | 760,161 | 959,141 | ||||||||||||||||||||
| Distribution of cash dividends | (83,624) | (93,720) | (2,439,014) | (2,622,127) | ||||||||||||||||||||
| Cash dividend regain from canceled share-based compensation | 136 | 76 | 4,059 | 2,244 | ||||||||||||||||||||
| Net cash flows used in financing activities | (61,489) | (108,603) | (1,781,487) | (3,244,430) | ||||||||||||||||||||
| Effect of exchange rate changes | 3,300 | 3,640 | (48,121) | 1,233,001 | ||||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 49,242 | (105,296) | 1,512,217 | (2,226,359) | ||||||||||||||||||||
| Cash and cash equivalents at beginning of year | 227,137 | 332,433 | 6,975,384 | 9,201,743 | ||||||||||||||||||||
| Cash and cash equivalents at end of year | 276,379 | 227,137 | 8,487,601 | 6,975,384 | ||||||||||||||||||||
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