Parade Technologies Reports Fourth Quarter and Fiscal 2014 Financial Results

Financial Highlights:

  • Q414 consolidated revenue US$55.03 million, compared with US$54.55 million in the year-ago quarter
  • Q414 Consolidated net income US$10.01 million; Basic and Fully diluted after-tax EPS US$0.13 (NT$4.12) and US$0.13 (NT$4.04), respectively

SANTA CLARA, Calif.--()--Parade Technologies, Ltd. (Taiwan OTC: 4966.TWO), a leading video display and interface IC supplier, today announced financial results for the fourth fiscal quarter and fiscal year 2014 ended December 31, 2014, and provided guidance for the first quarter of fiscal year 2015.

Consolidated revenue was US$55.03 million and consolidated net income was US$10.01 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.13 (NT$4.12) and US$0.13 (NT$4.04), respectively. These results compared to consolidated revenue US$54.55 million and consolidated net income of US$11.43 million, or US$0.15 (NT$4.56) and US$0.15 (NT$4.48) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the fourth quarter consolidated revenue decreased 6.69% sequentially and was up 0.89% year-over-year.

The gross profit in the fourth quarter of 2014 was US$22.29 million, representing a decrease of 9.32% from the previous quarter and a decrease of 0.47% compared to the same quarter last year.

The Company also reported financial results for fiscal year 2014. Consolidated revenue was US$205.39 million, representing an increase of 44.76% from US$141.89 million in the prior year. Gross margin was US$84.78 million and operating margin was US$43.64 million. Net income for fiscal year 2014 was US$40.47 million, or US$0.54 (NT$16.48) per basic share and US$0.53 (NT$16.15) per fully diluted share. These results compared with net income of US$22.89 million, or US$0.31 (NT$9.25) per basic share and US$0.30 (NT$9.02) 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 2015:

  • Revenue: US$45.5 ~49.5 Million
  • Gross Margin: 40% ~43%
  • Operating Expense: US$10 ~11 Million

In January 2015, Parade announced a new high-speed switch integrated circuit as a solution for USB Type-C Host devices to support DisplayPort Alt Mode. The new PS8740 Type-C Redriving Switch enables USB Type-C Host Interface with SuperSpeed USB, DisplayPort Alt Mode, and Cable Flipping. The device also includes signal redriver circuitry to compensate for signal loss in the SuperSpeed USB and DisplayPort data channels due to the system PCB traces and external interconnect cable.

The financial figures detailed above for the fourth quarter of 2014 and for the year ended December 31, 2014 have not been audited or reviewed by independent accountants.

About Parade Technologies, Ltd.

Parade Technologies, Ltd. (GTSM: 4966) is a leading fabless supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. Parade’s portfolio of IC products serves the growing demand for DisplayPort™, eDP™ (Embedded DisplayPort), HDMI™, MHL®, SATA, and USB ICs for display, storage and interface applications.

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 “Standard-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   Twelve Months ended Sequential Quarter   Three Months ended   Twelve Months ended
Dec 31,   Sept 30, Dec 31,   Dec 31, Dec 31,   Dec 31, Dec 31,   Sept 30, Dec 31,   Dec 31, Dec 31,   Dec 31,

 

2014 2014 2014 2013 2014 2013 2014 2014 2014 2013 2014 2013
 
Revenue 55,034 58,979 55,034 54,546 205,392 141,888 1,697,242 1,769,977 1,697,242 1,611,824 6,225,291 4,212,028
Cost of goods sold   32,743   34,397   32,743   32,149     120,616   80,186     1,009,777   1,032,266   1,009,777   949,996     3,656,094   2,380,204  
Gross profit   22,291   24,582   22,291   22,397     84,776   61,702     687,465   737,711   687,465   661,828     2,569,197   1,831,824  
Research & development expenses 6,393 6,414 6,393 5,715 24,161 22,641 197,163 192,481 197,163 168,887 732,331 672,428
Sales & marketing expenses 2,884 2,742 2,884 2,272 9,857 7,715 88,923 82,304 88,923 67,142 298,916 229,048
General & administrative expenses   1,960   1,906   1,960   1,635     7,121   5,688     60,451   57,212   60,451   48,318     215,900   168,904  
Total operating expenses   11,237   11,062   11,237   9,622     41,139   36,044     346,537   331,997   346,537   284,347     1,247,147   1,070,380  
Operating income   11,054   13,520   11,054   12,775     43,637   25,658     340,928   405,714   340,928   377,481     1,322,050   761,444  
Non-operating income and expenses   146   748   146   (14 )   970   (63 )   4,510   22,425   4,510   (396 )   29,248   (1,874 )
Income before income taxes   11,200   14,268   11,200   12,761     44,607   25,595     345,438   428,139   345,438   377,085     1,351,298   759,570  
Income tax expense   1,194   1,546   1,194   1,330     4,141   2,711     36,833   46,378   36,833   39,301     125,555   80,420  
Net income   10,006   12,722   10,006   11,431     40,466   22,884     308,605   381,761   308,605   337,784     1,225,743   679,150  
EPS - Basic (In Dollar) $ 0.13 $ 0.17 $ 0.13 $ 0.15 $ 0.54 $ 0.31 $ 4.12 $ 5.13 $ 4.12 $ 4.56 $ 16.48 $ 9.25
Shares used in computing EPS-Basic (In thousands) 74,976 74,480

 

74,976 74,131 74,364 73,397 74,976 74,480 74,976 74,131 74,364 73,397
EPS - Diluted (In Dollar) $ 0.13 $ 0.17 $ 0.13 $ 0.15 $ 0.53 $ 0.30 $ 4.04 $ 5.03 $ 4.04 $ 4.48 $ 16.15 $ 9.02
Shares used in computing EPS-Diluted (In thousands)   76,299     75,918     76,299     75,375       75,883     75,275     76,299     75,918     76,299     75,375       75,883     75,275  
   
UNAUDITED CONSOLIDATED BALANCE SHEETS USD in Thousands NTD in Thousands
As of December 31, 2014 and 2013 Dec 31,   Dec 31, Dec 31,   Dec 31,
2014 2013 2014 2013
Current assets
Cash & cash equivalents 145,353 116,038 4,600,434 3,459,081
Available-for-sale financial assets - current 1,086 1,079 34,365 32,172
Accounts receivable, net 34,275 34,325 1,084,808 1,023,236
Inventories, net 13,643 7,689 431,792 229,216
Other current assets 6,142   2,516   194,387 75,003  
Total current assets 200,499   161,647   6,345,786 4,818,708  
Non-current assets
Property, plant and equipment, net 3,850 3,064 121,864 91,340
Intangible assets 197 269 6,228 8,007
Deferred income tax assets 123 103 3,880 3,086
Other non-current assets 1,502   2,059   47,551 61,370  
Total non-current assets 5,672   5,495   179,522 163,803  
Total Assets 206,171   167,142   6,525,309 4,982,511  
 
Current Liabilities
Accounts payable 10,794 16,311 341,624 486,222
Other payables 11,129 8,521 352,228 254,005
Current tax liabilities 9,213 5,961 291,588 177,686
Other current liabilities 3,739   2,375   118,364 70,817  
Total current liabilities 34,875   33,168   1,103,804 988,730  
Equity
Ordinary shares 24,871 24,630 754,604 747,257
Capital reserves 55,167 48,211 1,651,739 1,442,109
Retained earnings 96,886 63,556 2,897,927 1,882,724
Other equity (5,628 ) (2,423 ) 117,235 (78,309 )
Total equity 171,296   133,974   5,421,505 3,993,781  
Total liabilities and equity 206,171   167,142   6,525,309 4,982,511  
   
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS USD in Thousands NTD in Thousands
For twelve months ended December 31, 2014 and 2013 Dec 31,   Dec 31, Dec 31,   Dec 31,
2014 2013 2014 2013

Cash flows from operating activities

Income before income tax for the year 44,607 25,595 1,351,298 759,570
Depreciation and amortization 1,481 1,238 44,877 36,746
Share-based compensation cost 2,634 2,028 79,839 60,217
Interest income (30 ) (57 ) (923 ) (1,706 )
Income and expenses having no effect on cash flows 4,085   3,209   123,793   95,257  
Accounts receivable 50 (10,637 ) 1,587 (317,081 )
Inventories (5,954 ) (920 ) (188,428 ) (27,426 )
Other assets (2,860 ) (1,662 ) (90,510 ) (49,537 )
Net changes in assets relating to operating activities (8,764 ) (13,219 ) (277,351 ) (394,044 )
Accounts payable (5,517 ) 9,267 (174,610 ) 276,243
Other payables 2,608 25 82,545 754
Other current liabilities 1,364   469   43,176   13,991  
Net changes in liabilities relating to operating activities (1,545 ) 9,761   (48,889 ) 290,988  
Cash generated from operations 38,383   25,347   1,148,851   751,771  
Interest received 32 56 958 1,661
Income taxes paid (112 ) (822 ) (3,401 ) (24,409 )
Net cash provided by operating activities 38,303   24,580   1,146,408   729,023  

Cash flows from investing activities

Increase in available-for-sale financial assets - current (7 ) - (207 ) -
Acquisition of equipment and computer software (2,230 ) (1,474 ) (67,603 ) (43,765 )
Increase in refundable deposits (27 ) (98 ) (842 ) (2,909 )
Net cash used in investing activities (2,264 ) (1,572 ) (68,652 ) (46,674 )

Cash flows from financing activities

Proceeds from exercise of employee stock options 1,251 1,056 37,908 31,341
Purchase of treasury shares (1,374 ) (2,332 ) (41,920 ) (69,629 )
Treasury shares reissued to employees 1,374 2,332 41,920 69,629
Distribution of cash dividends (7,140 ) (6,144 ) (210,628 ) (181,239 )
Net cash used in financing activities (5,889 ) (5,088 ) (172,720 ) (149,898 )
Effect of exchange rate changes on cash and cash equivalents (835 ) 108 236,317 80,418
Increase in cash and cash equivalents 29,315 18,028 1,141,352 612,869
Cash and cash equivalents at beginning of year 116,038   98,010   3,459,081   2,846,212  
Cash and cash equivalents at end of year 145,353   116,038   4,600,434   3,459,081  

Contacts

Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com

Contacts

Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com