SANTA CLARA, Calif.--(BUSINESS WIRE)--Parade Technologies, Ltd. (Taipei Exchange:4966.TWO), a leading video display and interface IC supplier, today announced financial results for the third quarter fiscal 2015 ended September 30, 2015, and provided guidance for the fourth quarter of fiscal year 2015 that is first full quarter with TrueTouch mobile business.
Parade completed the acquisition of Cypress’s TrueTouch mobile business on August 1, 2015. Parade believes this acquisition will substantially expand Parade’s addressable market, increase company scale, and diversify its revenue and customer base. Cypress’s state-of-the-art technology in capacitive touch-sensing will also help extend Parade’s leadership position in display market and enable Parade’s roadmap for display and touch integration solutions. The financial results presented below include the operating results from TrueTouch starting in the third quarter of 2015.
Consolidated revenue was US$60.82 million and consolidated net income was US$10.04 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.13 (NT$4.28) and US$0.13 (NT$4.22), respectively. These results compared to consolidated revenue US$58.98 million and consolidated net income of US$12.72 million, or US$0.17 (NT$5.13) and US$0.17 (NT$5.03) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the third quarter consolidated revenue increased 23.35% sequentially and was up 3.12% year-over-year.
The gross profit in the third quarter of 2015 was US$24.33 million, representing an increase of 19.59% from the previous quarter and a decrease of 1.03% compared to the same quarter of last year.
Based on current business outlook, Parade is providing the following guidance for the fourth quarter of fiscal 2015:
- Revenue: US$61 ~67 Million
- Gross Margin: 40% ~43%
- Operating Expense: US$16.5 ~17.5 Million
On October 27, 2015, Parade announced the first eDP Timing Controllers (TCONs) that comply to the newly released eDP 1.4b Standard. The two eDP TCON devices, DP691 and DP693, support the latest iteration of Panel Self Refresh (PSR) - defined as PSR2 in eDP 1.4 standard - which enables reduced power, lower BOM cost, and increased system compatibility. Production is expected to begin in 2016.
On August 10, 2015, Parade also announced two new DisplayPort™ to HDMI™ converters, which provide conversion from DP 1.2a or DP 1.3 to HDMI 2.0a. The PS175 was developed for mother board applications in portable and desktop systems. The PS176 was developed for protocol adapters or dongles, including DisplayPort Alt Mode over USB Type-C™ to HDMI 2.0a adapters. Both devices support the HDMI 2.0a maximum data rate up to 6Gbit/sec with Parade’s proprietary jitter cleaning capability.
The financial figures detailed above for the third quarter of 2015 have been reviewed by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO) 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™, USB Type-C™, 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 “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.
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UNAUDITED CONSOLIDATED STATEMENTS OF
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USD in Thousands | NTD in Thousands | ||||||||||||||||||||||||||||||||||||
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Sequential Quarter |
Three Months ended | Nine Months ended | Sequential Quarter | Three Months ended | Nine Months ended | |||||||||||||||||||||||||||||||||
| Sept 30, | June 30, | Sept 30, |
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Sept 30, | Sept 30, | Sept 30, | Sept 30, | June 30, | Sept 30, | Sept 30, | Sept 30, | Sept 30, | ||||||||||||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2015 | 2014 | 2015 | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||
| Revenue | 60,818 | 49,304 | 60,818 | 58,979 | 158,277 | 150,358 | 1,944,347 | 1,520,525 | 1,944,347 | 1,769,977 | 4,982,729 | 4,528,049 | ||||||||||||||||||||||||||
| Cost of goods sold | 36,489 | 28,961 | 36,489 | 34,397 | 94,184 | 87,873 | 1,166,545 | 893,165 | 1,166,545 | 1,032,266 | 2,965,413 | 2,646,317 | ||||||||||||||||||||||||||
| Gross profit | 24,329 | 20,343 | 24,329 | 24,582 | 64,093 | 62,485 | 777,802 | 627,360 | 777,802 | 737,711 | 2,017,316 | 1,881,732 | ||||||||||||||||||||||||||
| Research & development expenses | 9,229 | 6,293 | 9,229 | 6,414 | 21,649 | 17,768 | 295,055 | 194,072 | 295,055 | 192,481 | 682,252 | 535,168 | ||||||||||||||||||||||||||
| Sales & marketing expenses | 3,671 | 2,479 | 3,671 | 2,742 | 8,479 | 6,973 | 117,362 | 76,454 | 117,362 | 82,304 | 267,236 | 209,993 | ||||||||||||||||||||||||||
| General & administrative expenses | 2,115 | 1,969 | 2,115 | 1,906 | 6,017 | 5,161 | 67,624 | 60,714 | 67,624 | 57,212 | 189,268 | 155,449 | ||||||||||||||||||||||||||
| Total operating expenses | 15,015 | 10,741 | 15,015 | 11,062 | 36,145 | 29,902 | 480,041 | 331,240 | 480,041 | 331,997 | 1,138,756 | 900,610 | ||||||||||||||||||||||||||
| Operating income | 9,314 | 9,602 | 9,314 | 13,520 | 27,948 | 32,583 | 297,761 | 296,120 | 297,761 | 405,714 | 878,560 | 981,122 | ||||||||||||||||||||||||||
| Non-operating income and expenses | 726 | 90 | 726 | 748 | 844 | 824 | 23,201 | 2,780 | 23,201 | 22,425 | 26,870 | 24,738 | ||||||||||||||||||||||||||
| Income before income taxes | 10,040 | 9,692 | 10,040 | 14,268 | 28,792 | 33,407 | 320,962 | 298,900 | 320,962 | 428,139 | 905,430 | 1,005,860 | ||||||||||||||||||||||||||
| Income tax expense | 1 | 915 | 1 | 1,546 | 1,878 | 2,947 | 27 | 28,209 | 27 | 46,378 | 58,550 | 88,722 | ||||||||||||||||||||||||||
| Net income | 10,039 | 8,777 | 10,039 | 12,722 | 26,914 | 30,460 | 320,935 | 270,691 | 320,935 | 381,761 |
846,880 |
917,138 | ||||||||||||||||||||||||||
| EPS - Basic (In Dollar) | $0.13 | $0.12 | $0.13 | $0.17 | $0.36 | $0.41 | $4.28 | $3.63 | $4.28 | $5.13 | $11.33 | $12.35 | ||||||||||||||||||||||||||
| Shares used in computing EPS-Basic (In thousands) | 74,966 | 74,585 | 74,966 | 74,480 | 74,753 | 74,268 | 74,966 | 74,585 | 74,966 | 74,480 | 74,753 | 74,268 | ||||||||||||||||||||||||||
| EPS - Diluted (In Dollar) | $0.13 | $0.12 | $0.13 | $0.17 | $0.35 | $0.40 | $4.22 | $3.56 | $4.22 | $5.03 | $11.11 | $12.11 | ||||||||||||||||||||||||||
| Shares used in computing EPS-Diluted (In thousands) | 76,124 | 75,981 | 76,124 | 75,918 | 76,203 | 75,749 | 76,124 | 75,981 | 76,124 | 75,918 | 76,203 | 75,749 | ||||||||||||||||||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | USD in Thousands | NTD in Thousands | |||||||||||||||
| As of September 30, 2015 and 2014 | Sept 30, | Sept 30, | Sept 30, | Sept 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| Current assets | |||||||||||||||||
| Cash & cash equivalents | 65,812 | 123,636 | 2,163,241 | 3,761,011 | |||||||||||||
| Available-for-sale financial assets - current | - | 1,086 | - | 33,029 | |||||||||||||
| Accounts receivable, net | 38,114 | 41,052 | 1,252,801 | 1,248,804 | |||||||||||||
| Inventories, net | 22,677 | 25,346 | 745,398 | 771,027 | |||||||||||||
| Other current assets | 8,913 | 4,901 | 292,958 | 149,086 | |||||||||||||
| Total current assets | 135,516 | 196,021 | 4,454,398 | 5,962,957 | |||||||||||||
| Non-current assets | |||||||||||||||||
| Property, plant and equipment, net | 5,143 | 3,837 | 169,051 | 116,707 | |||||||||||||
| Intangible assets | 91,425 | 198 | 3,005,129 | 6,024 | |||||||||||||
| Deferred income tax assets | 1,099 | 233 | 36,119 | 7,085 | |||||||||||||
| Other non-current assets | 1,185 | 1,632 | 38,966 | 49,661 | |||||||||||||
| Total non-current assets | 98,852 | 5,900 | 3,249,265 | 179,477 | |||||||||||||
| Total Assets | 234,368 | 201,921 | 7,703,663 | 6,142,434 | |||||||||||||
| Current Liabilities | |||||||||||||||||
| Accounts payable | 18,647 | 18,507 | 612,944 | 562,974 | |||||||||||||
| Other payables | 10,077 | 9,649 | 331,205 | 293,528 | |||||||||||||
| Current income tax liabilities | 11,557 | 8,420 | 379,888 | 256,132 | |||||||||||||
| Other current liabilities | 6,030 | 5,215 | 198,221 | 158,636 | |||||||||||||
| Total current liabilities | 46,311 | 41,791 | 1,522,258 | 1,271,270 | |||||||||||||
| Equity | |||||||||||||||||
| Ordinary shares | 25,063 | 24,847 | 760,553 | 753,865 | |||||||||||||
| Capital reserves | 60,001 | 54,465 | 1,802,738 | 1,630,059 | |||||||||||||
| Retained earnings | 111,583 | 86,876 | 3,366,060 | 2,589,249 | |||||||||||||
| Other equity | (8,236) | (6,058) | 263,602 | (102,009) | |||||||||||||
| Treasury shares | (354) | - | (11,548) | - | |||||||||||||
| Total equity | 188,057 | 160,130 | 6,181,405 | 4,871,164 | |||||||||||||
| Total liabilities and equity | 234,368 | 201,921 | 7,703,663 | 6,142,434 | |||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | USD in Thousands | NTD in Thousands | |||||||||||||||||||
| For nine months ended September 30, 2015 and 2014 | Sept 30, | Sept 30, | Sept 30, | Sept 30, | |||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
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Cash flows from operating activities |
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| Income before income tax for the period | 28,792 | 33,407 | 905,430 | 1,005,860 | |||||||||||||||||
| Depreciation and amortization | 2,516 | 1,030 | 79,114 | 31,041 | |||||||||||||||||
| Loss on disposal of equipment | 46 | 75 | 1,440 | 2,251 | |||||||||||||||||
| Share-based compensation cost | 2,345 | 1,811 | 73,725 | 54,568 | |||||||||||||||||
| Interest income | (44 | ) | (21 | ) | (1,393 | ) | (625 | ) | |||||||||||||
| Income and expenses having no effect on cash flows | 4,863 | 2,895 | 152,886 | 87,235 | |||||||||||||||||
| Accounts receivable | (3,839 | ) | (6,727 | ) | (126,178 | ) | (204,630 | ) | |||||||||||||
| Inventories | (9,034 | ) | (17,657 | ) | (296,962 | ) | (537,121 | ) | |||||||||||||
| Other current assets | (2,696 | ) | (2,186 | ) | (88,641 | ) | (66,503 | ) | |||||||||||||
| Other non-current assets | 437 | 437 | 14,370 | 13,299 | |||||||||||||||||
| Net changes in assets relating to operating activities | (15,132 | ) | (26,133 | ) | (497,411 | ) | (794,955 | ) | |||||||||||||
| Accounts payable | 7,854 | 2,196 | 258,151 | 66,802 | |||||||||||||||||
| Other payables | (1,140 | ) | 1,128 | (37,341 | ) | 34,325 | |||||||||||||||
| Other current liabilities | 2,291 | 2,839 | 75,294 | 86,371 | |||||||||||||||||
| Net changes in liabilities relating to operating activities | 9,005 | 6,163 | 296,104 | 187,498 | |||||||||||||||||
| Cash provided by operations | 27,528 | 16,332 | 857,009 | 485,638 | |||||||||||||||||
| Interest received | 49 | 23 | 1,535 | 705 | |||||||||||||||||
| Income taxes paid | (562 | ) | (363 | ) | (17,678 | ) | (10,949 | ) | |||||||||||||
| Net cash provided by operating activities | 27,015 | 15,992 | 840,866 | 475,394 | |||||||||||||||||
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Cash flows from investing activities |
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| Decrease (increase) in available for sale financial assets - current | 1,086 | (7 | ) | 33,507 | (199 | ) | |||||||||||||||
| Acquisition of equipment | (2,080 | ) | (1,827 | ) | (65,382 | ) | (55,034 | ) | |||||||||||||
| Acquisition of intangible assets | (1,342 | ) | (2 | ) | (42,201 | ) | (67 | ) | |||||||||||||
| Increases in refundable deposits | (120 | ) | (11 | ) | (3,952 | ) | (334 | ) | |||||||||||||
| Acquisition of business combinations | (100,329 | ) | - | (3,168,405 | ) | - | |||||||||||||||
| Net cash used in investing activities | (102,785 | ) | (1,847 | ) | (3,246,433 | ) | (55,634 | ) | |||||||||||||
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Cash flows from financing activities |
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| Proceeds from exercise of employee stock options | 383 | 1,074 | 12,044 | 32,366 | |||||||||||||||||
| Distribution of cash dividends | (12,220 | ) | (7,144 | ) | (378,811 | ) | (210,727 | ) | |||||||||||||
| Purchase of treasury shares | (2,815 | ) | (1,374 | ) | (89,045 | ) | (41,920 | ) | |||||||||||||
| Treasury shares reissued to employees | 2,461 | 1,374 | 77,497 | 41,920 | |||||||||||||||||
| Cash dividend regain from canceled share-based compensation | 2 | 2 | 49 | 48 | |||||||||||||||||
| Net cash used in financing activities | (12,189 | ) | (6,068 | ) | (378,266 | ) | (178,313 | ) | |||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 8,418 | (479 | ) | 346,640 | 60,483 | ||||||||||||||||
| (Decrease)Increase in cash and cash equivalents | (79,541 | ) | 7,598 | (2,437,193 | ) | 301,930 | |||||||||||||||
| Cash and cash equivalents at beginning of period | 145,353 | 116,038 | 4,600,434 | 3,459,081 | |||||||||||||||||
| Cash and cash equivalents at end of period | 65,812 | 123,636 | 2,163,241 | 3,761,011 | |||||||||||||||||
