PARADE TECHNOLOGIES, LTD. Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the third quarter fiscal year 2021 ended September 30, 2021, and provided guidance for the fourth quarter of fiscal year 2021.
Consolidated revenue was US$191.72 million and consolidated net income was US$53.34 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.67 (NT$18.71) and US$0.66 (NT$18.34), respectively. These results compared to consolidated revenue US$150.15 million and consolidated net income of US$36.75 million, or US$0.47 (NT$13.80) and US$0.46 (NT$13.52) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the third quarter of 2021 consolidated revenue increased 9.39% sequentially and was up 27.69% year-over-year.
The gross profit in the third quarter of 2021 was US$94.14 million, representing an increase of 12.76% from the previous quarter and an increase of 42.47% compared to the same quarter of last year.
On August 19, 2021, Parade announced the PS188, a USB 3.2 Hub chip with integrated DisplayPort™ 1.4a to HDMI™ 2.0 converter and dual USB Power Delivery 3.0 controllers. The PS188 upstream facing port supports USB 3.2 (Gen 2×1) and DP Alternate Mode while downstream ports offer HDMI 2.0, two USB 3.2 (Gen 2×1) ports as well as an additional USB 2.0-only port. The two integrated Power Delivery controllers provide full PD 3.0 functionality to the upstream port and one downstream USB Type-C® port. The PS188 represents the first fruits from Parade’s 2020 acquisition of Fresco Logic and combines Parade’s video expertise with Fresco’s USB Hub and Power Delivery technologies. PS188 joins Parade’s lineup alongside the PS186 DP to HDMI protocol converter, the FL5500 USB 3.2 hub and the FL7112 USB Type-C PD 3.0 Controller.
On September 29, 2021, Parade announced the DP818/DP816 timing controllers (TTcon) with an integrated touch controller, TC2200 source drivers (TSD) with integrated touch analog front ends (AFEs) and the TC2201, a Gate-on-Array (GOA) level shifter (TLS) for required display & touch voltage generation. This family of complementary devices target high resolution notebook platforms supporting Embedded DisplayPort (eDP) 1.4b with features such as high dynamic range (HDR) and Panel Self-Refresh (PSR). The DP818 Tcon supports TrueTouch in-cell capacitive touch and active stylus functionality for commercial notebook applications, while the DP816 provides a robust TrueTouch touch only solution for mainstream notebooks. The touch integrated Tcon, SD and level shifter combines Parade’s broad portfolio of patented display and touchscreen technology as well as proven display processing and high-speed signal technology to provide a low-power, highly integrated display and touchscreen solution for premium notebook in-cell a-Si or Oxide TFT LCD displays.
On October 12, 2021, Parade announced the availability of the PS5169 and PS5170 USB-C linear redrivers optimized for smartphones and ultra-mobile devices. The PS51xx family improves signal integrity for USB 3.2 and DisplayPort 1.4a signaling over the USB-C interconnect and consumes very low power. The PS5169 and PS5170 linear redrivers are fully compliant with the USB-IF USB 3.2 specification supporting up to Gen 2×2, or two lanes operating at 10 Gbps signaling rate. For DP Alt Mode support they comply with VESA DP 1.4a with up to 4 lanes at HBR3, or 8.1 Gbps link rate, and comply with VESA DisplayPort Alt Mode 2.0. The PS5170 integrates an AUX switch for SBU signals.
On October 19, 2021, Parade announced the availability of the PS8830 USB4 retimer for commercial and consumer PCs, host systems and peripherals. The PS8830 features full capabilities of USB4, DisplayPort 2.0 and Thunderbolt 3.0. This allows OEMs to offer a wide range of product offerings with future-proof platform longevity. The PS8830 is fully compliant with USB-IF’s USB4 specification supporting up to Gen 3×2 (2x 20Gbps) or 40Gbps. It supports USB4 tunneling of DP 1.4a and USB 3.2 as well as alternate modes including DP 2.0 up to UHBR20 and TBT 3.0 up to 41.25Gbps (2x 20.625Gbps). PS8830 will fall back to USB 3.2 mode when USB4 mode is not supported.
Based on current business outlook, Parade is providing the following guidance for the fourth quarter of fiscal 2021:
- Revenue: US$176.5 ~194.5 Million
- Gross Margin: 44.5% ~48.5%
- Operating Expense: US$32.5 ~35.5 Million
The financial figures detailed above for the third quarter of 2021 have been reviewed by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (“TPEx”) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
| Parade Technologies, Ltd. and Subsidiaries. | ||||||||||||||||||||||||||||||||||
The reader is advised that these consolidated financial statements have been prepared originally in NT$ 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 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 | 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, | ||||||||||||||||||
2021 |
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | 2021 |
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||||||||||
| Revenue | 191,718 |
| 175,254 |
| 191,718 |
| 150,146 |
| 520,079 |
| 370,049 | 5,341,284 |
| 4,903,589 |
| 5,341,284 |
| 4,421,777 |
| 14,588,526 |
| 11,016,325 | ||||||||||||
| Cost of goods sold | 97,582 |
| 91,767 |
| 97,582 |
| 84,072 |
| 273,460 |
| 206,272 | 2,718,646 |
| 2,567,624 |
| 2,718,646 |
| 2,475,915 |
| 7,672,505 |
| 6,140,454 | ||||||||||||
| Gross profit | 94,136 |
| 83,487 |
| 94,136 |
| 66,074 |
| 246,619 |
| 163,777 | 2,622,638 |
| 2,335,965 |
| 2,622,638 |
| 1,945,862 |
| 6,916,021 |
| 4,875,871 | ||||||||||||
| Research & development expenses | 19,875 |
| 19,088 |
| 19,875 |
| 16,443 |
| 56,466 |
| 45,539 | 553,710 |
| 534,076 |
| 553,710 |
| 484,243 |
| 1,584,348 |
| 1,356,986 | ||||||||||||
| Sales & marketing expenses | 8,496 |
| 8,308 |
| 8,496 |
| 6,413 |
| 23,698 |
| 16,516 | 236,709 |
| 232,457 |
| 236,709 |
| 188,851 |
| 664,749 |
| 491,905 | ||||||||||||
| General & administrative expenses | 6,322 |
| 5,898 |
| 6,322 |
| 4,640 |
| 17,206 |
| 12,797 | 176,126 |
| 165,030 |
| 176,126 |
| 136,635 |
| 482,619 |
| 381,245 | ||||||||||||
| Total operating expenses | 34,693 |
| 33,294 |
| 34,693 |
| 27,496 |
| 97,370 |
| 74,852 | 966,545 |
| 931,563 |
| 966,545 |
| 809,729 |
| 2,731,716 |
| 2,230,136 | ||||||||||||
| Operating income | 59,443 |
| 50,193 |
| 59,443 |
| 38,578 |
| 149,249 |
| 88,925 | 1,656,093 |
| 1,404,402 |
| 1,656,093 |
| 1,136,133 |
| 4,184,305 |
| 2,645,735 | ||||||||||||
| Non-operating income and (expenses) | (46 | ) | (115 | ) | (46 | ) | (87 | ) | (580 | ) | 873 | (1,310 | ) | (3,206 | ) | (1,310 | ) | (2,557 | ) | (16,404 | ) | 26,307 | ||||||||||||
| Income before income taxes | 59,397 |
| 50,078 |
| 59,397 |
| 38,491 |
| 148,669 |
| 89,798 | 1,654,783 |
| 1,401,196 |
| 1,654,783 |
| 1,133,576 |
| 4,167,901 |
| 2,672,042 | ||||||||||||
| Income tax expense | 6,060 |
| 5,009 |
| 6,060 |
| 1,745 |
| 13,828 |
| 4,142 | 168,809 |
| 140,170 |
| 168,809 |
| 51,404 |
| 387,242 |
| 123,416 | ||||||||||||
| Net income | 53,337 |
| 45,069 |
| 53,337 |
| 36,746 |
| 134,841 |
| 85,656 | 1,485,974 |
| 1,261,026 |
| 1,485,974 |
| 1,082,172 |
| 3,780,659 |
| 2,548,626 | ||||||||||||
| EPS - Basic (In Dollar) | $0.67 |
| $0.57 |
| $0.67 |
| $0.47 |
| $1.71 |
| $1.09 | $18.71 |
| $15.98 |
| $18.71 |
| $13.80 |
| $47.85 |
| $32.58 | ||||||||||||
| Shares used in computing EPS-Basic (In thousands) | 79,424 |
| 78,914 |
| 79,424 |
| 78,437 |
| 79,004 |
| 78,229 | 79,424 |
| 78,914 |
| 79,424 |
| 78,437 |
| 79,004 |
| 78,229 | ||||||||||||
| EPS - Diluted (In Dollar) | $0.66 |
| $0.56 |
| $0.66 |
| $0.46 |
| $1.67 |
| $1.07 | $18.34 |
| $15.62 |
| $18.34 |
| $13.52 |
| $46.74 |
| $31.77 | ||||||||||||
| Shares used in computing EPS-Diluted (In thousands) | 81,021 |
| 80,735 |
| 81,021 |
| 80,018 |
| 80,895 |
| 80,230 | 81,021 |
| 80,735 |
| 81,021 |
| 80,018 |
| 80,895 |
| 80,230 | ||||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2021 AND 2020 | USD in Thousands | NTD in Thousands | ||||||||||
| Sep 30, | Sep 30, | Sep 30, | Sep 30, | |||||||||
2021 |
| 2020 |
| 2021 |
| 2020 |
| |||||
| Current assets | ||||||||||||
| Cash & cash equivalents | 308,491 |
| 271,266 |
| 8,591,470 |
| 7,893,836 |
| ||||
| Accounts receivable, net | 62,250 |
| 60,524 |
| 1,733,665 |
| 1,761,246 |
| ||||
| Inventories, net | 64,104 |
| 38,457 |
| 1,785,302 |
| 1,119,095 |
| ||||
| Other current assets | 20,410 |
| 28,784 |
| 568,412 |
| 511,837 |
| ||||
| Total current assets | 455,255 |
| 399,031 |
| 12,678,849 |
| 11,286,014 |
| ||||
| Non-current assets | ||||||||||||
| Property, plant and equipment, net | 17,813 |
| 12,731 |
| 496,115 |
| 370,459 |
| ||||
| Right-of-use assets | 9,236 |
| 5,130 |
| 257,237 |
| 149,293 |
| ||||
| Intangible assets | 112,377 |
| 113,120 |
| 3,129,677 |
| 3,291,791 |
| ||||
| Deferred income tax assets | 7,832 |
| 6,414 |
| 218,126 |
| 186,643 |
| ||||
| Other non-current assets | 73,747 |
| 903 |
| 2,053,842 |
| 352,075 |
| ||||
| Total non-current assets | 221,005 |
| 138,298 |
| 6,154,997 |
| 4,350,261 |
| ||||
| Total Assets | 676,260 |
| 537,329 |
| 18,833,846 |
| 15,636,275 |
| ||||
| Current Liabilities | ||||||||||||
| Accounts payable | 33,820 |
| 36,293 |
| 941,895 |
| 1,056,122 |
| ||||
| Other payables | 37,403 |
| 27,478 |
| 1,041,667 |
| 799,615 |
| ||||
| Current income tax liabilities | 31,362 |
| 21,514 |
| 873,439 |
| 626,055 |
| ||||
| Lease liabilities - current | 3,527 |
| 1,987 |
| 98,228 |
| 57,827 |
| ||||
| Other current liabilities | 7,047 |
| 8,109 |
| 196,229 |
| 235,961 |
| ||||
| Total current liabilities | 113,159 |
| 95,381 |
| 3,151,458 |
| 2,775,580 |
| ||||
| Non-current Liabilities | ||||||||||||
| Lease liabilities - non-current | 5,709 |
| 3,143 |
| 159,009 |
| 91,466 |
| ||||
| Total non-current liabilities | 5,709 |
| 3,143 |
| 159,009 |
| 91,466 |
| ||||
| Equity | ||||||||||||
| Ordinary shares | 26,636 |
| 26,597 |
| 808,705 |
| 807,581 |
| ||||
| Capital reserves | 142,192 |
| 137,325 |
| 4,276,273 |
| 4,144,850 |
| ||||
| Retained earnings | 421,199 |
| 315,705 |
| 12,653,796 |
| 9,667,305 |
| ||||
| Other equity | (27,680 | ) | (40,822 | ) | (2,076,222 | ) | (1,850,507 | ) | ||||
| Treasury shares | (4,955 | ) | - |
| (139,173 | ) | - |
| ||||
| Total equity | 557,392 |
| 438,805 |
| 15,523,379 |
| 12,769,229 |
| ||||
| Total liabilities and equity | 676,260 |
| 537,329 |
| 18,833,846 |
| 15,636,275 |
| ||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 | USD in Thousands | NTD in Thousands | ||||||||||
| Sep 30, | Sep 30, | Sep 30, | Sep 30, | |||||||||
2021 |
| 2020 |
| 2021 |
| 2020 |
| |||||
| Cash flows from operating activities | ||||||||||||
| Income before income tax for the period | 148,669 |
| 89,798 |
| 4,167,901 |
| 2,672,042 |
| ||||
| Depreciation and amortization (including the right-of-use assets) | 19,481 |
| 11,568 |
| 546,811 |
| 344,955 |
| ||||
| Loss on disposal of equipment | 86 |
| - |
| 2,417 |
| - |
| ||||
| Share-based compensation cost | 11,179 |
| 15,017 |
| 331,333 |
| 453,796 |
| ||||
| Interest income | (74 | ) | (914 | ) | (2,070 | ) | (27,482 | ) | ||||
| Income and expenses having no effect on cash flows | 30,672 |
| 25,671 |
| 878,491 |
| 771,269 |
| ||||
| Accounts receivable | (6,817 | ) | (20,580 | ) | (189,863 | ) | (598,864 | ) | ||||
| Inventories | (7,397 | ) | (6,976 | ) | (206,015 | ) | (203,014 | ) | ||||
| Other current assets | (2,154 | ) | (5,886 | ) | (59,976 | ) | (171,270 | ) | ||||
| Net changes in assets relating to operating activities | (16,368 | ) | (33,442 | ) | (455,854 | ) | (973,148 | ) | ||||
| Accounts payable | (9,750 | ) | 10,069 |
| (271,537 | ) | 293,008 |
| ||||
| Other payables | 3,258 |
| 2,839 |
| 90,749 |
| 82,611 |
| ||||
| Other current liabilities | 1,422 |
| 1,767 |
| 39,613 |
| 51,432 |
| ||||
| Net changes in liabilities relating to operating activities | (5,070 | ) | 14,675 |
| (141,175 | ) | 427,051 |
| ||||
| Cash provided by operations | 157,903 |
| 96,702 |
| 4,449,363 |
| 2,897,214 |
| ||||
| Interest received | 74 |
| 914 |
| 2,070 |
| 27,263 |
| ||||
| Income taxes paid | (3,952 | ) | (7,427 | ) | (110,944 | ) | (221,470 | ) | ||||
| Income taxes received | 2 |
| 1 |
| 52 |
| 12 |
| ||||
| Net cash provided by operating activities | 154,027 |
| 90,190 |
| 4,340,541 |
| 2,703,019 |
| ||||
| Cash flows from investing activities | ||||||||||||
| Acquisition of equipment | (9,205 | ) | (6,399 | ) | (258,385 | ) | (190,817 | ) | ||||
| Acquisition of intangible assets | (147 | ) | (3,952 | ) | (4,119 | ) | (117,841 | ) | ||||
| Increase in refundable deposits | (66,264 | ) | (37 | ) | (1,845,447 | ) | (1,090 | ) | ||||
| Increase in other prepayments | (5,383 | ) | (6,582 | ) | (151,088 | ) | (196,289 | ) | ||||
| Acquisition of business combinations | - |
| (37,169 | ) | - |
| (1,112,458 | ) | ||||
| Net cash used in investing activities | (80,999 | ) | (54,139 | ) | (2,259,039 | ) | (1,618,495 | ) | ||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from exercise of employee stock options | 196 |
| 498 |
| 5,492 |
| 14,865 |
| ||||
| Repayment of the principal portion of lease liabilities | (2,783 | ) | (1,637 | ) | (78,118 | ) | (48,834 | ) | ||||
| Purchase of treasury shares | (10,038 | ) | - |
| (281,882 | ) | - |
| ||||
| Treasury shares reissued to employees | 11,052 |
| 3,296 |
| 310,416 |
| 101,725 |
| ||||
| Distribution of cash dividends | (59,474 | ) | (39,369 | ) | (1,752,708 | ) | (1,216,887 | ) | ||||
| Cash dividend regain from canceled share-based compensation | 42 |
| 53 |
| 1,269 |
| 1,584 |
| ||||
| Net cash used in financing activities | (61,005 | ) | (37,159 | ) | (1,795,531 | ) | (1,147,547 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (2,678 | ) | 1,994 |
| (214,180 | ) | (149,141 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 9,345 |
| 886 |
| 71,791 |
| (212,164 | ) | ||||
| Cash and cash equivalents at beginning of period | 299,146 |
| 270,380 |
| 8,519,679 |
| 8,106,000 |
| ||||
| Cash and cash equivalents at end of period | 308,491 |
| 271,266 |
| 8,591,470 |
| 7,893,836 |
| ||||
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