Parade Technologies Reports Second Quarter 2022 Financial Results

Financial Highlights: Q2 22 consolidated revenue US$216.70 million, compared with US$175.25 million in the year-ago quarter Q2 22 consolidated net income US$60.94 million; Basic and Fully diluted after-tax EPS US$0.76 (NT$22.51) and US$0.75 (NT$22.18), respectively

Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the second quarter fiscal year 2022 ended June 30, 2022, and provided guidance for the third quarter of fiscal year 2022.

Consolidated revenue was US$216.70 million and consolidated net income was US$60.94 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.76 (NT$22.51) and US$0.75 (NT$22.18), respectively. These results compared to consolidated revenue US$175.25 million and consolidated net income of US$45.07 million, or US$0.57 (NT$15.98) and US$0.56 (NT$15.62) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the second quarter of 2022 consolidated revenue increased 2.84% sequentially and was up 23.65% year-over-year.

The gross profit in the second quarter of 2022 was US$102.36 million, representing an increase of 1.57% from the previous quarter and an increase of 22.60% compared to the same quarter of last year.

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

• Revenue: US$150 ~166 Million
• Gross Margin: 44.5% ~48.5%
• Operating Expense: US$35 ~38 Million

The financial figures detailed above for the second quarter of 2022 have been audited 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.
CONSOLIDATED INCOME STATEMENTS	USD in Thousands															NTD in Thousands
	Sequential Quarter					Three Months ended					Six Months ended					Sequential Quarter					Three Months ended					Six Months ended
	Jun 30,		Mar 31,			Jun 30,		Jun 30,			Jun 30,		Jun 30,			Jun 30,		Mar 31,			Jun 30,		Jun 30,			Jun 30,		Jun 30,
	2022		2022			2022		2021			2022		2021			2022		2022			2022		2021			2022		2021
Revenue	216,699		210,723			216,699		175,254			427,422		328,361			6,383,951		5,898,143			6,383,951		4,903,589			12,282,094		9,247,242
Cost of goods sold	114,340		109,948			114,340		91,767			224,288		175,878			3,368,457		3,077,451			3,368,457		2,567,624			6,445,908		4,953,859
Gross profit	102,359		100,775			102,359		83,487			203,134		152,483			3,015,494		2,820,692			3,015,494		2,335,965			5,836,186		4,293,383
Research & development expenses	21,483		21,226			21,483		19,088			42,709		36,591			632,873		594,124			632,873		534,076			1,226,997		1,030,638
Sales & marketing expenses	7,907		8,214			7,907		8,308			16,121		15,202			232,925		229,911			232,925		232,457			462,836		428,040
General & administrative expenses	6,549		6,449			6,549		5,898			12,998		10,884			192,942		180,508			192,942		165,030			373,450		306,493
Total operating expenses	35,939		35,889			35,939		33,294			71,828		62,677			1,058,740		1,004,543			1,058,740		931,563			2,063,283		1,765,171
Operating income	66,420		64,886			66,420		50,193			131,306		89,806			1,956,754		1,816,149			1,956,754		1,404,402			3,772,903		2,528,212
Non-operating income and (expenses)	566		(30	)		566		(115	)		536		(534	)		16,662		(825	)		16,662		(3,206	)		15,837		(15,094	)
Income before income taxes	66,986		64,856			66,986		50,078			131,842		89,272			1,973,416		1,815,324			1,973,416		1,401,196			3,788,740		2,513,118
Income tax expense	6,049		5,669			6,049		5,009			11,718		7,768			178,193		158,689			178,193		140,170			336,882		218,433
Net income	60,937		59,187			60,937		45,069			120,124		81,504			1,795,223		1,656,635			1,795,223		1,261,026			3,451,858		2,294,685
EPS - Basic (In Dollar)	$0.76		$0.75			$0.76		$0.57			$1.51		$1.03			$22.51		$20.91			$22.51		$15.98			$43.42		$29.12
Shares used in computing EPS-Basic (In thousands)	79,766		79,212			79,766		78,914			79,496		78,808			79,766		79,212			79,766		78,914			79,496		78,808
EPS - Diluted (In Dollar)	$0.75		$0.73			$0.75		$0.56			$1.48		$1.01			$22.18		$20.55			$22.18		$15.62			$42.67		$28.42
Shares used in computing EPS-Diluted (In thousands)	80,951		80,602			80,951		80,735			80,905		80,732			80,951		80,602			80,951		80,735			80,905		80,732

CONSOLIDATED BALANCE SHEETS		USD in Thousands						NTD in Thousands
As of June 30, 2022 and 2021		Jun 30,			Jun 30,			Jun 30,			Jun 30,
		2022			2021			2022			2021
Current assets
Cash & cash equivalents		408,717			285,336			12,147,059			7,949,466
Accounts receivable, net		71,597			58,787			2,127,869			1,637,799
Inventories, net		107,911			60,448			3,207,122			1,684,077
Other current assets		25,492			18,279			757,629			509,243
Total current assets		613,717			422,850			18,239,679			11,780,585
Non-current assets
Property, plant and equipment, net		17,920			16,276			532,593			453,465
Right-of-use assets		6,759			9,489			200,863			264,360
Intangible assets		106,129			114,072			3,154,145			3,178,062
Deferred income tax assets		10,232			8,117			304,090			226,142
Other non-current assets		78,140			73,918			2,322,312			2,059,345
Total non-current assets		219,180			221,872			6,514,003			6,181,374
Total Assets		832,897			644,722			24,753,682			17,961,959
Current Liabilities
Accounts payable		56,079			36,860			1,666,672			1,026,922
Other payables		100,695			70,978			2,892,562			2,020,870
Current income tax liabilities		30,317			21,099			901,030			587,826
Lease liabilities - current		3,037			3,397			90,253			94,628
Other current liabilities		13,823			4,007			410,818			111,645
Total current liabilities		203,951			136,341			5,961,335			3,841,891
Non-current Liabilities
Lease liabilities - non-current		3,722			6,092			110,610			169,732
Total non-current liabilities		3,722			6,092			110,610			169,732
Equity
Ordinary shares		26,740			26,636			811,895			808,705
Capital reserves		138,074			142,358			4,188,380			4,281,780
Retained earnings		500,731			369,703			14,948,952			11,167,756
Other equity		(18,513	)		(31,453	)		(661,362	)		(2,168,732	)
Treasury shares		(21,808	)		(4,955	)		(606,128	)		(139,173	)
Total equity		625,224			502,289			18,681,737			13,950,336
Total liabilities and equity		832,897			644,722			24,753,682			17,961,959

CONSOLIDATED STATEMENTS OF CASH FLOWS		USD in Thousands						NTD in Thousands
FOR THE SIX MONTHS ENDED JUNE 30, 2022 and 2021		Jun 30,			Jun 30,			Jun 30,			Jun 30,
		2022			2021			2022			2021
Cash flows from operating activities
Income before income tax for the period		131,842			89,272			3,788,740			2,513,118
Depreciation and amortization (including the right-of-use assets)		11,081			12,225			318,238			344,389
Loss on disposal of equipment		1			63			34			1,776
Share-based compensation cost		16,451			13,356			479,230			389,558
Interest income		(158	)		(49	)		(4,627	)		(1,392	)
Income and expenses having no effect on cash flows		27,375			25,595			792,875			734,331
Accounts receivable		(21,214	)		(3,354	)		(630,493	)		(93,442	)
Inventories		(32,133	)		(3,741	)		(954,979	)		(104,223	)
Other current assets		(31,800	)		(10,554	)		(893,882	)		(298,189	)
Net changes in assets relating to operating activities		(85,147	)		(17,649	)		(2,479,354	)		(495,854	)
Accounts payable		15,233			(6,710	)		452,730			(186,946	)
Other payables		(1,814	)		1,814			(53,915	)		50,543
Other current liabilities		3,779			(1,616	)		112,320			(45,027	)
Net changes in liabilities relating to operating activities		17,198			(6,512	)		511,135			(181,430	)
Cash provided by operations		91,268			90,706			2,613,396			2,570,165
Interest received		158			49			4,627			1,392
Income taxes paid		(816	)		(1,999	)		(23,433	)		(56,326	)
Income taxes received		19			2			554			53
Net cash generated from operating activities		90,629			88,758			2,595,144			2,515,284
Cash flows from investing activities
Acquisition of equipment		(3,854	)		(6,157	)		(110,678	)		(173,444	)
Acquisition of intangible assets		(34	)		(81	)		(977	)		(2,292	)
Decrease (increase) in refundable deposits		74			(66,311	)		2,193			(1,847,422	)
Increase in other prepayments		(4,552	)		(3,938	)		(130,729	)		(110,926	)
Net cash used in investing activities		(8,366	)		(76,487	)		(240,191	)		(2,134,084	)
Cash flows from financing activities
Proceeds from exercise of employee stock options		2,376			143			68,228			4,036
Repayment of the principal portion of lease liabilities		(1,931	)		(2,018	)		(55,475	)		(56,844	)
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		(40,752	)		(24,455	)		(1,147,980	)		(733,641	)
Cash dividend regain from canceled share-based compensation		52			40			1,517			1,203
Net cash used in financing activities		(5,722	)		(25,276	)		(174,569	)		(756,712	)
Effect of exchange rate changes		(257	)		(805	)		764,932			(194,701	)
Net increase (decrease) in cash and cash equivalents		76,284			(13,810	)		2,945,316			(570,213	)
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		408,717			285,336			12,147,059			7,949,466

 

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