PARADE TECHNOLOGIES, LTD. Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the second quarter fiscal year 2023 ended June 30, 2023, and provided guidance for the third quarter of fiscal year 2023.
Consolidated revenue was US$104.18 million and consolidated net income was US$13.98 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.18 (NT$5.44) and US$0.18 (NT$5.40), respectively. These results compared to consolidated revenue US$216.70 million and consolidated net income of US$60.94 million, or US$0.76 (NT$22.51) and US$0.75 (NT$22.18) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the second quarter of 2023 consolidated revenue increased 4.19% sequentially and was down 51.93% year-over-year.
The gross profit in the second quarter of 2023 was US$45.80 million, representing an increase of 3.98% from the previous quarter and a decrease of 55.26% compared to the same quarter of last year.
On May 24, 2023, Parade announced the availability of the PS8833 USB4/TBT4/DP 2.1 retimer and PS8836 USB 3.2/DP 2.1 retimer for commercial and consumer PCs, host systems and peripherals. PS8833 features full capabilities of USB4®, DisplayPort 2.1™ and Thunderbolt™ 4.0 with 50% reduction in power consumption. Its pin compatibility with PS8830 USB4/TBT4 retimer currently shipping in customer systems, greatly simplifies OEM design for product longevity. PS8836 offers USB 3.2 Gen 2×2 with DP 2.1 and is pin compatible with PS8833. The PS8833 / PS8836 pin compatible solutions allow OEMs to easily offer a full range of USB4 and USB 3.2 product offerings.
On July 26, 2023, Parade has demonstrated the lowest latencies in the industry with its new PS8936 PCIe/CXL re-timer solution. PS8936 retimer chip developed for PCI Express Rev. 5.0 and Compute Express Link (CXL), supporting sixteen bidirectional lanes. In addition to supporting the 32 Gbps data rate offered by the PCI Express 5.0 specification, it also supports all lower data rates, to provide backward compatibility with earlier PCI Express revisions. The promise of CXL is to enable scalable, high-performance coherent memory. While CXL can rely on the continual advances in PCIe Express to address its ever-increasing bandwidth needs, access time is an equally critical factor for memory performance. As larger CXL architectures are built, they will inevitably encounter situations where signal integrity places limits on both scale and flexibility, and retimers will be needed. With Parade’s patented low-latency retimers, these systems can be built without compromising signal integrity or performance.
Based on current business outlook, Parade is providing the following guidance for the third quarter of fiscal 2023:
- Revenue: US$107 ~119 Million
- Gross Margin: 43% ~47%
- Operating Expense: US$30 ~33 Million
The financial figures detailed above for the second quarter of 2023 have been audited by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (“TPEx”) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
Parade Technologies, Ltd. and Subsidiaries.
The reader is advised that these consolidated financial statements have been prepared originally in NT$ 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, | |||||||||||||
2023 |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| 2023 |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 | |||||||||||||
| Revenue |
| 104,178 |
| 99,990 |
| 104,178 |
| 216,699 |
| 204,168 |
| 427,422 |
| 3,199,298 |
| 3,039,712 |
| 3,199,298 |
| 6,383,951 |
| 6,239,010 |
| 12,282,094 | |||||||||||
| Cost of goods sold |
| 58,380 |
| 55,947 |
| 58,380 |
| 114,340 |
| 114,327 |
| 224,288 |
| 1,792,845 |
| 1,700,797 |
| 1,792,845 |
| 3,368,457 |
| 3,493,642 |
| 6,445,908 | |||||||||||
| Gross profit |
| 45,798 |
| 44,043 |
| 45,798 |
| 102,359 |
| 89,841 |
| 203,134 |
| 1,406,453 |
| 1,338,915 |
| 1,406,453 |
| 3,015,494 |
| 2,745,368 |
| 5,836,186 | |||||||||||
| Research & development expenses |
| 20,293 |
| 19,892 |
| 20,293 |
| 21,483 |
| 40,185 |
| 42,709 |
| 623,198 |
| 604,717 |
| 623,198 |
| 632,873 |
| 1,227,915 |
| 1,226,997 | |||||||||||
| Sales & marketing expenses |
| 7,188 |
| 7,198 |
| 7,188 |
| 7,907 |
| 14,386 |
| 16,121 |
| 220,732 |
| 218,822 |
| 220,732 |
| 232,925 |
| 439,554 |
| 462,836 | |||||||||||
| General & administrative expenses |
| 4,888 |
| 4,993 |
| 4,888 |
| 6,549 |
| 9,881 |
| 12,998 |
| 150,109 |
| 151,797 |
| 150,109 |
| 192,942 |
| 301,906 |
| 373,450 | |||||||||||
| Expected credit loss |
| - |
| 84 |
| - |
| - |
| 84 |
| - |
| - |
| 2,549 |
| - |
| - |
| 2,549 |
| - | |||||||||||
| Total operating expenses |
| 32,369 |
| 32,167 |
| 32,369 |
| 35,939 |
| 64,536 |
| 71,828 |
| 994,039 |
| 977,885 |
| 994,039 |
| 1,058,740 |
| 1,971,924 |
| 2,063,283 | |||||||||||
| Operating income |
| 13,429 |
| 11,876 |
| 13,429 |
| 66,420 |
| 25,305 |
| 131,306 |
| 412,414 |
| 361,030 |
| 412,414 |
| 1,956,754 |
| 773,444 |
| 3,772,903 | |||||||||||
| Non-operating income and (expenses) |
| 2,055 |
| 1,268 |
| 2,055 |
| 566 |
| 3,323 |
| 536 |
| 63,081 |
| 38,560 |
| 63,081 |
| 16,662 |
| 101,641 |
| 15,837 | |||||||||||
| Income before income taxes |
| 15,484 |
| 13,144 |
| 15,484 |
| 66,986 |
| 28,628 |
| 131,842 |
| 475,495 |
| 399,590 |
| 475,495 |
| 1,973,416 |
| 875,085 |
| 3,788,740 | |||||||||||
| Income tax expense |
| 1,505 |
| 1,523 |
| 1,505 |
| 6,049 |
| 3,028 |
| 11,718 |
| 46,226 |
| 46,299 |
| 46,226 |
| 178,193 |
| 92,525 |
| 336,882 | |||||||||||
| Net income |
| 13,979 |
| 11,621 |
| 13,979 |
| 60,937 |
| 25,600 |
| 120,124 |
| 429,269 |
| 353,291 |
| 429,269 |
| 1,795,223 |
| 782,560 |
| 3,451,858 | |||||||||||
| EPS - Basic (In Dollar) | $ | 0.18 | $ | 0.15 | $ | 0.18 | $ | 0.76 | $ | 0.33 | $ | 1.51 | $ | 5.44 | $ | 4.51 | $ | 5.44 | $ | 22.51 | $ | 9.94 | $ | 43.42 | |||||||||||
| Shares used in computing EPS-Basic (In thousands) |
| 78,947 |
| 78,373 |
| 78,947 |
| 79,766 |
| 78,692 |
| 79,496 |
| 78,947 |
| 78,373 |
| 78,947 |
| 79,766 |
| 78,692 |
| 79,496 | |||||||||||
| EPS - Diluted (In Dollar) | $ | 0.18 | $ | 0.15 | $ | 0.18 | $ | 0.75 | $ | 0.32 | $ | 1.48 | $ | 5.40 | $ | 4.46 | $ | 5.40 | $ | 22.18 | $ | 9.85 | $ | 42.67 | |||||||||||
| Shares used in computing EPS-Diluted (In thousands) |
| 79,545 |
| 79,207 |
| 79,545 |
| 80,951 |
| 79,413 |
| 80,905 |
| 79,545 |
| 79,207 |
| 79,545 |
| 80,951 |
| 79,413 |
| 80,905 | |||||||||||
| CONSOLIDATED BALANCE SHEETS As of June 30, 2023 and 2022 | USD in Thousands | NTD in Thousands | |||||||||
| Jun 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
| Current assets | |||||||||||
| Cash & cash equivalents | 225,120 |
| 408,717 |
| 7,010,227 |
| 12,147,059 |
| |||
| Accounts receivable, net | 54,721 |
| 71,597 |
| 1,704,022 |
| 2,127,869 |
| |||
| Inventories, net | 114,368 |
| 107,911 |
| 3,561,433 |
| 3,207,122 |
| |||
| Other current assets | 32,666 |
| 25,492 |
| 1,017,219 |
| 757,629 |
| |||
| Total current assets | 426,875 |
| 613,717 |
| 13,292,901 |
| 18,239,679 |
| |||
| Non-current assets | |||||||||||
| Property, plant and equipment, net | 14,970 |
| 17,920 |
| 466,159 |
| 532,593 |
| |||
| Right-of-use assets | 5,083 |
| 6,759 |
| 158,295 |
| 200,863 |
| |||
| Intangible assets | 101,772 |
| 106,129 |
| 3,169,177 |
| 3,154,145 |
| |||
| Deferred income tax assets | 11,143 |
| 10,232 |
| 346,988 |
| 304,090 |
| |||
| Other non-current assets | 150,473 |
| 78,140 |
| 4,685,730 |
| 2,322,312 |
| |||
| Total non-current assets | 283,441 |
| 219,180 |
| 8,826,349 |
| 6,514,003 |
| |||
| Total Assets | 710,316 |
| 832,897 |
| 22,119,250 |
| 24,753,682 |
| |||
| Current Liabilities | |||||||||||
| Accounts payable | 29,194 |
| 56,079 |
| 909,092 |
| 1,666,672 |
| |||
| Other payables | 54,820 |
| 100,695 |
| 1,687,909 |
| 2,892,562 |
| |||
| Current income tax liabilities | 9,528 |
| 30,317 |
| 296,692 |
| 901,030 |
| |||
| Lease liabilities - current | 2,960 |
| 3,037 |
| 92,194 |
| 90,253 |
| |||
| Other current liabilities | 6,490 |
| 13,823 |
| 202,110 |
| 410,818 |
| |||
| Total current liabilities | 102,992 |
| 203,951 |
| 3,187,997 |
| 5,961,335 |
| |||
| Non-current Liabilities | |||||||||||
| Lease liabilities - non-current | 2,123 |
| 3,722 |
| 66,101 |
| 110,610 |
| |||
| Total non-current liabilities | 2,123 |
| 3,722 |
| 66,101 |
| 110,610 |
| |||
| Equity | |||||||||||
| Ordinary shares | 26,735 |
| 26,740 |
| 811,747 |
| 811,895 |
| |||
| Capital reserves | 134,946 |
| 138,074 |
| 4,212,672 |
| 4,188,380 |
| |||
| Retained earnings | 498,502 |
| 500,731 |
| 14,740,781 |
| 14,948,952 |
| |||
| Other equity | (10,321 | ) | (18,513 | ) | 493,401 |
| (661,362 | ) | |||
| Treasury shares | (44,661 | ) | (21,808 | ) | (1,393,449 | ) | (606,128 | ) | |||
| Total equity | 605,201 |
| 625,224 |
| 18,865,152 |
| 18,681,737 |
| |||
| Total liabilities and equity | 710,316 |
| 832,897 |
| 22,119,250 |
| 24,753,682 |
| |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS For six months ended June 30, 2023 and 2022 | USD in Thousands | NTD in Thousands | |||||||||
| Jun 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
| Cash flows from operating activities | |||||||||||
| Income before income tax for the period | 28,628 |
| 131,842 |
| 875,085 |
| 3,788,740 |
| |||
| Depreciation and amortization (including the right-of-use assets) | 11,132 |
| 11,081 |
| 340,100 |
| 318,238 |
| |||
| Expected credit loss | 84 |
| - |
| 2,549 |
| - |
| |||
| Loss on disposal of equipment | - |
| 1 |
| - |
| 34 |
| |||
| Loss on disposal of intangible assets | 125 |
| - |
| 3,814 |
| - |
| |||
| Share-based compensation cost | 17,735 |
| 16,451 |
| 537,517 |
| 479,230 |
| |||
| Interest income | (2,925 | ) | (158 | ) | (89,352 | ) | (4,627 | ) | |||
| Income and expenses having no effect on cash flows | 26,151 |
| 27,375 |
| 794,628 |
| 792,875 |
| |||
| Accounts receivable | (20,098 | ) | (21,214 | ) | (625,845 | ) | (630,493 | ) | |||
| Inventories | 31,124 |
| (32,133 | ) | 969,215 |
| (954,979 | ) | |||
| Other current assets | (27,673 | ) | (31,800 | ) | (737,173 | ) | (893,882 | ) | |||
| Net changes in assets relating to operating activities | (16,647 | ) | (85,147 | ) | (393,803 | ) | (2,479,354 | ) | |||
| Accounts payable | 16,191 |
| 15,233 |
| 504,193 |
| 452,730 |
| |||
| Other payables | (9,303 | ) | (1,814 | ) | (289,726 | ) | (53,915 | ) | |||
| Other current liabilities | (6,983 | ) | 3,779 |
| (217,466 | ) | 112,320 |
| |||
| Net changes in liabilities relating to operating activities | (95 | ) | 17,198 |
| (2,999 | ) | 511,135 |
| |||
| Cash inflow generated from operations | 38,037 |
| 91,268 |
| 1,272,911 |
| 2,613,396 |
| |||
| Interest received | 2,925 |
| 158 |
| 89,352 |
| 4,627 |
| |||
| Income taxes paid | (6,247 | ) | (816 | ) | (190,854 | ) | (23,433 | ) | |||
| Income taxes received | - |
| 19 |
| - |
| 554 |
| |||
| Net cash provided by operating activities | 34,715 |
| 90,629 |
| 1,171,409 |
| 2,595,144 |
| |||
| Cash flows from investing activities | |||||||||||
| Acquisition of equipment | (2,812 | ) | (3,854 | ) | (85,894 | ) | (110,678 | ) | |||
| Acquisition of intangible assets | (170 | ) | (34 | ) | (5,181 | ) | (977 | ) | |||
| Decrease in refundable deposits | 6,821 |
| 74 |
| 212,389 |
| 2,193 |
| |||
| Increase in other prepayments | (6,505 | ) | (4,552 | ) | (198,738 | ) | (130,729 | ) | |||
| Net cash flows used in investing activities | (2,666 | ) | (8,366 | ) | (77,424 | ) | (240,191 | ) | |||
| Cash flows from financing activities | |||||||||||
| Proceeds from exercise of employee stock options | - |
| 2,376 |
| - |
| 68,228 |
| |||
| Repayment of the principal portion of lease liabilities | (1,786 | ) | (1,931 | ) | (54,554 | ) | (55,475 | ) | |||
| Treasury shares reissued to employees | 25,424 |
| 34,533 |
| 760,161 |
| 959,141 |
| |||
| Distribution of cash dividends | (60,062 | ) | (40,752 | ) | (1,724,498 | ) | (1,147,980 | ) | |||
| Cash dividend regain from canceled share-based compensation | 73 |
| 52 |
| 2,184 |
| 1,517 |
| |||
| Net cash flows used in financing activities | (36,351 | ) | (5,722 | ) | (1,016,707 | ) | (174,569 | ) | |||
| Effect of exchange rate changes | 2,285 |
| (257 | ) | (42,435 | ) | 764,932 |
| |||
| Net (decrease) increase in cash and cash equivalents | (2,017 | ) | 76,284 |
| 34,843 |
| 2,945,316 |
| |||
| Cash and cash equivalents at beginning of period | 227,137 |
| 332,433 |
| 6,975,384 |
| 9,201,743 |
| |||
| Cash and cash equivalents at end of period | 225,120 |
| 408,717 |
| 7,010,227 |
| 12,147,059 |
| |||
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