Parade Technologies Reports Fourth Quarter and Fiscal 2016 Financial Results

Financial Highlights:

  • Q416 consolidated revenue US$77.02 million, compared with US$67.65 million in the year-ago quarter
  • Q416 consolidated net income US$12.05 million; Basic and Fully diluted after-tax EPS US$0.16 (NT$4.99) and US$0.15 (NT$4.87), respectively

SANTA CLARA, Calif.--()--Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading video display and interface IC supplier, today announced financial results for the fourth fiscal quarter and fiscal year 2016 ended December 31, 2016, and provided guidance for the first quarter of fiscal year 2017.

Consolidated revenue was US$77.02 million and consolidated net income was US$12.05 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.16 (NT$4.99) and US$0.15 (NT$4.87), respectively. These results compared to consolidated revenue US$67.65 million and consolidated net income of US$9.12 million, or US$0.12 (NT$3.95) and US$0.12 (NT$3.89) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the fourth quarter of 2016 consolidated revenue increased 16.94% sequentially and was up 13.85% year-over-year.

The gross profit in the fourth quarter of 2016 was US$31.02 million, representing an increase of 12.21% from the previous quarter and an increase of 14.62% compared to the same quarter of last year.

The Company also reported financial results for fiscal year 2016. Consolidated revenue was US$282.29 million, representing an increase of 24.95% from US$225.93 million in the prior year. Gross profit was US$115.89 million and operating income was US$46.08 million. Net income for fiscal year 2016 was US$43.17 million, or US$0.57 (NT$18.52) per basic share and US$0.56 (NT$18.06) per fully diluted share. These results compared with net income of US$36.03 million, or US$0.48 (NT$15.30) per basic share and US$0.47 (NT$15.00) 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 2017:

  • Revenue: US$70 ~77 Million
  • Gross Margin: 40% ~43%
  • Operating Expense: US$16.75 ~17.75 Million

On February 6, 2017, Parade announced a new eDP Tcon that supports 4K resolution and embedded panels that include self-refresh and partial self-refresh capabilities. The company also announced a new complementary Source Driver that features Parade’s exclusive SIPI™ interface. The new DP696 eDP Tcon and TC2070 Source Driver, designed to be used in combination, offer the feature set and performance to enable very high LCD panel resolutions along with low power consumption to extend system battery life.

In the past, use of the high display quality and low power LTPS LCD panel was limited to the high-volume smartphone market. But with newly expanded LPTS panel capacity in Asia, it is now feasible to apply this same technology to notebook/tablet applications. This is helping to drive 4K embedded displays into thin form factor portable systems, and the DP696 and TC2070 are ideal for such panel applications.

The financial figures detailed above for the fourth quarter of 2016 and for the year ended December 31, 2016 have not been audited or reviewed by independent accountants.

About Parade Technologies, Ltd.

Parade Technologies, Ltd. (Stock Code: 4966) is a leading fabless supplier of mixed-signal ICs for a variety of popular display, touch controller 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®, SATA, PCI Express and USB ICs for display, touch, 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.

 
       
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,
2016 2016 2016

2015

2016 2015 2016 2016 2016 2015 2016 2015
 
Revenue 77,017 65,863 77,017 67,650 282,294 225,927 2,446,821 2,089,160 2,446,821 2,206,742 9,106,653 7,189,471
Cost of goods sold   45,993   38,216   45,993   40,584   166,406   134,768   1,461,192   1,212,205   1,461,192   1,323,840   5,368,177   4,289,253
Gross profit   31,024   27,647   31,024   27,066   115,888   91,159   985,629   876,955   985,629   882,902   3,738,476   2,900,218
Research & development expenses 11,182 11,304 11,182 10,703 44,380 32,352 355,250 358,565 355,250 349,110 1,431,431 1,031,362
Sales & marketing expenses 4,129 4,151 4,129 4,099 16,714 12,578 131,176 131,654 131,176 133,706 539,294 400,942
General & administrative expenses   2,268   2,033   2,268   2,107   8,712   8,124   72,066   64,503   72,066   68,740   281,170   258,008
Total operating expenses   17,579   17,488   17,579   16,909   69,806   53,054   558,492   554,722   558,492   551,556   2,251,895   1,690,312
Operating income   13,445   10,159   13,445   10,157   46,082   38,105   427,137   322,233   427,137   331,346   1,486,581   1,209,906
Non-operating income and expenses   215   72   215   64   319   908   6,836   2,306   6,836   2,100   10,160   28,970
Income before income taxes   13,660   10,231   13,660   10,221   46,401   39,013   433,973   324,539   433,973   333,446   1,496,741   1,238,876
Income tax expense   1,610   669   1,610   1,102   3,235   2,980   51,149   21,224   51,149   35,980   104,070   94,530
Net income   12,050   9,562   12,050   9,119   43,166   36,033   382,824   303,315   382,824   297,466   1,392,671   1,144,346
EPS - Basic (In Dollar) $ 0.16 $ 0.13 $ 0.16 $ 0.12 $ 0.57 $ 0.48 $ 4.99 $ 4.03 $ 4.99 $ 3.95 $ 18.52 $ 15.30
Shares used in computing EPS-Basic (In thousands) 76,667 75,312 76,667 75,355 75,190 74,806 76,667 75,312 76,667 75,355 75,190 74,806
EPS - Diluted (In Dollar) $ 0.15 $ 0.12 $ 0.15 $ 0.12 $ 0.56 $ 0.47 $ 4.87 $ 3.94 $ 4.87 $ 3.89 $ 18.06 $ 15.00
Shares used in computing EPS-Diluted (In thousands)   78,652     77,011     78,652     76,511     77,124     76,297   78,652     77,011     78,652     76,511     77,124     76,297
 
UNAUDITED CONSOLIDATED BALANCE SHEETS   USD in Thousands   NTD in Thousands
As of December 31, 2016 and 2015 Dec 31,   Dec 31, Dec 31,   Dec 31,
2016 2015 2016 2015
Current assets
Cash & cash equivalents 124,987 87,961 4,030,839 2,887,751
Accounts receivable, net 47,558 38,162 1,533,751 1,252,871
Inventories, net 26,329 18,696 849,120 613,776
Other current assets 7,802   8,046   251,611   264,159  
Total current assets 206,676   152,865   6,665,321   5,018,557  
Non-current assets
Property, plant and equipment, net 4,417 4,828 142,448 158,494
Intangible assets 92,387 91,062 2,979,491 2,989,576
Deferred income tax assets 2,181 1,185 70,325 38,893
Other non-current assets 845   1,103   27,247   36,223  
Total non-current assets 99,830   98,178   3,219,511   3,223,186  
Total Assets 306,506   251,043   9,884,832   8,241,743  
 
Current Liabilities
Accounts payable 30,025 21,379 968,324 701,881
Other payables 16,895 12,101 544,858 397,268
Current tax liabilities 16,125 12,536 520,018 411,561
Other current liabilities 9,712   8,218   313,227   269,787  
Total current liabilities 72,757   54,234   2,346,427   1,780,497  
Equity
Ordinary shares 25,457 25,070 773,049 760,751
Capital reserves 71,150 60,024 2,159,035 1,804,206
Retained earnings 151,635 120,702 4,674,742 3,663,574
Other equity (14,493 ) (7,502 ) (68,421 ) 281,120
Treasury shares -   (1,485 ) -   (48,405 )
Total equity 233,749   196,809   7,538,405   6,461,246  
Total liabilities and equity 306,506   251,043   9,884,832   8,241,743  
 
 
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS   USD in Thousands   NTD in Thousands
For twelve months ended December 31, 2016 and 2015 Dec 31,   Dec 31, Dec 31,   Dec 31,
2016 2015 2016 2015

Cash flows from operating activities

Income before income tax for the year 46,401 39,013 1,496,741 1,238,876
Depreciation and amortization 9,041 4,422 291,670 140,349
Loss on disposal of equipment - 47 - 1,479
Share-based compensation cost 4,610 3,257 148,708 103,370
Interest income (45 ) (54 ) (1,460 ) (1,718 )
Income and expenses having no effect on cash flows 13,606   7,672   438,918   243,480  
Accounts receivable (9,396 ) (3,887 ) (303,014 ) (127,619 )
Inventories (7,634 ) (5,053 ) (246,187 ) (165,886 )
Other current assets 280 (1,830 ) 9,038 (60,095 )
Other non-current assets 194   583   6,266   19,137  
Net changes in assets relating to operating activities (16,556 ) (10,187 ) (533,897 ) (334,463 )
Accounts payable 8,646 10,585 278,843 347,521
Other payables 4,794 885 154,608 29,167
Other current liabilities 1,495   4,478   48,206   147,011  
Net changes in liabilities relating to operating activities 14,935   15,948   481,657   523,699  
Cash provided by operations 58,386   52,446   1,883,419   1,671,592  
Interest received 39 59 1,263 1,857
Interest payable (95 ) - (3,087 ) -
Income taxes paid (529 ) (787 ) (17,076 ) (24,967 )
Net cash provided by operating activities 57,801   51,718   1,864,519   1,648,482  

Cash flows from investing activities

Decrease in available for sale financial assets - current - 1,086 - 33,507
Acquisition of equipment (1,857 ) (2,391 ) (59,919 ) (75,898 )
Acquisition of intangible assets (7,668 ) (2,303 ) (247,366 ) (73,099 )
Decrease (increase) in refundable deposits 64 (185 ) 2,070 (6,036 )
Acquisition of business combinations -   (100,329 ) -   (3,168,405 )
Net cash used in investing activities (9,461 ) (104,122 ) (305,215 ) (3,289,931 )

Cash flows from financing activities

Proceeds from exercise of employee stock options 583 411 18,798 13,051
Distribution of cash dividends (11,573 ) (12,220 ) (381,897 ) (378,811 )
Purchase of treasury shares - (3,946 ) - (125,902 )
Treasury shares reissued to employees 1,485 2,461 48,405 77,497
Cash dividend regain from canceled share-based compensation 12   3   385   92  
Net cash used in financing activities (9,493 ) (13,291 ) (314,309 ) (414,073 )
Effect of exchange rate changes on cash and cash equivalents (1,821 ) 8,303 (101,907 ) 342,839
Increase (decrease) in cash and cash equivalents 37,026 (57,392 ) 1,143,088 (1,712,683 )
Cash and cash equivalents at beginning of year 87,961   145,353   2,887,751   4,600,434  
Cash and cash equivalents at end of year 124,987   87,961   4,030,839   2,887,751  
 

Contacts

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

Release Summary

Parade Technologies Reports Fourth Quarter and Fiscal 2016 Financial Results

Contacts

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