Parade Technologies Reports First Quarter 2017 Financial Results

Financial Highlights:

  • Q117 consolidated revenue US$75.64 million, compared with US$70.63 million in the year-ago quarter
  • Q117 consolidated net income US$11.95 million; Basic and Fully diluted after-tax EPS US$0.16 (NT$4.92) and US$0.15 (NT$4.78), 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 first quarter fiscal 2017 ended March 31, 2017, and provided guidance for the second quarter of fiscal year 2017.

Consolidated revenue was US$75.64 million and consolidated net income was US$11.95 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.16 (NT$4.92) and US$0.15 (NT$4.78), respectively. These results compared to consolidated revenue US$70.63 million and consolidated net income of US$10.79 million, or US$0.14 (NT$4.77) and US$0.14 (NT$4.68) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the first quarter of 2017 consolidated revenue decreased 1.79% sequentially and was up 7.09% year-over-year.

The gross profit in the first quarter of 2017 was US$30.26 million, representing a decrease of 2.57% from the previous quarter and an increase of 4.14% compared to the same quarter of last year.

Based on current business outlook, Parade is providing the following guidance for the second quarter of fiscal 2017:

  • Revenue: US$79 ~86 Million
  • Gross Margin: 40% ~43%
  • Operating Expense: US$17 ~18 Million

On April 19, 2017, Parade announced a new family of 10Gb/s USB-C retiming products supporting USB 3.1 and DisplayPort 1.4 for USB-C interface. These new devices are designed to implement USB-C in a USB Host / DisplayPort Alt Mode Source device and to support USB 3.1 signal conditioning. USB-C is becoming the connector of choice for both high speed data and high resolution video due to its ability to support the needed increase in bit rates enabled by USB 3.1 and DisplayPort 1.4.

Without a retimer, support of USB 3.1 Gen 2 (10 Gbit/sec) is typically limited to a PCB length of just several inches, which is not practical in many system usages, especially for the connection to the USB-C receptacle. Parade’s new family of USB 3.1 retiming devices pack in several innovative technologies such as notably CrystalFree operation (no external reference clock or crystal needed), very low latency in the sub-nanoseconds, system transparent operation (redriver-like implementation), low operating power consumption and very low standby power. All family of retiming products support Intel’s DCI (Direct Connect Interface) for closed chassis debugging over the system USB-C port.

The financial figures detailed above for the first quarter of 2017 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 STATEMENTS OF
COMPREHENSIVE INCOME

USD in Thousands NTD in Thousands
Sequential Quarter Three Months ended Sequential Quarter Three Months ended
Mar 31, Dec 31, Mar 31, Mar 31, Mar 31, Dec 31, Mar 31, Mar 31,
2017 2016 2017 2016 2017 2016 2017 2016
 
Revenue 75,641 77,017 75,641 70,631 2,351,687 2,446,822 2,351,687 2,340,738
Cost of goods sold   45,384   45,963   45,384   41,576     1,410,995   1,460,249   1,410,995   1,377,840  
Gross profit   30,257   31,054   30,257   29,055     940,692   986,573   940,692   962,898  
Research & development expenses 11,033 11,212 11,033 10,838 343,003 356,194 343,003 359,186
Sales & marketing expenses 3,892 4,129 3,892 4,202 121,015 131,176 121,015 139,240
General & administrative expenses   2,358   2,268   2,358   2,248     73,308   72,066   73,308   74,513  
Total operating expenses   17,283   17,609   17,283   17,288     537,326   559,436   537,326   572,939  
Operating income   12,974   13,445   12,974   11,767     403,366   427,137   403,366   389,959  
Non-operating income and expenses   15   215   15   (2 )   457   6,836   457   (69 )
Income before income taxes   12,989   13,660   12,989   11,765     403,823   433,973   403,823   389,890  
Income tax expense   1,038   2,760   1,038   976     32,256   87,684   32,256   32,346  
Net income   11,951   10,900   11,951   10,789     371,567   346,289   371,567   357,544  
EPS - Basic (In Dollar) $ 0.16 $ 0.14 $ 0.16 $ 0.14 $ 4.92 $ 4.52 $ 4.92 $ 4.77
Shares used in computing EPS-Basic (In thousands) 75,506 76,667 75,506 74,921 75,506 76,667 75,506 74,921
EPS - Diluted (In Dollar) $ 0.15 $ 0.14 $ 0.15 $ 0.14 $ 4.78 $ 4.40 $ 4.78 $ 4.68
Shares used in computing EPS-Diluted (In thousands)   77,807     78,652     77,807     76,335     77,807     78,652     77,807     76,335  
     
UNAUDITED CONSOLIDATED BALANCE SHEETS USD in Thousands NTD in Thousands
As of March 31, 2017 and 2016 Mar 31,   Mar 31, Mar 31,   Mar 31,
2017 2016 2017 2016
Current assets
Cash & cash equivalents 131,227 94,535 3,980,102 3,043,098
Accounts receivable, net 44,589 41,693 1,352,382 1,342,092
Inventories, net 39,480 26,128 1,197,425 841,062
Other current assets 7,464   11,161   226,389   359,270  
Total current assets 222,760   173,517   6,756,298   5,585,522  
Non-current assets
Property, plant and equipment, net 5,283 4,732 160,255 152,332
Intangible assets 91,133 89,972 2,764,054 2,896,207
Deferred income tax assets 2,157 1,185 65,421 38,129
Other non-current assets 995   1,024   30,180   32,949  
Total non-current assets 99,568   96,913   3,019,910   3,119,617  
Total Assets

322,328

 

270,430

 

9,776,208

 

8,705,139

 
 
Current Liabilities
Accounts payable 33,901 31,847 1,028,205 1,025,154
Other payables 14,558 10,723 441,554 345,166
Current tax liabilities 17,765 13,242 538,827 426,248
Other current liabilities 10,116   5,987   306,794   192,733  
Total current liabilities 76,340   61,799   2,315,380   1,989,301  
Equity
Ordinary shares 25,466 25,070 773,321 760,750
Capital reserves 71,196 60,309 2,160,472 1,813,697
Retained earnings 162,438 131,497 5,009,849 4,021,274
Other equity (12,996 ) (6,760 ) (479,284 ) 168,522
Treasury shares (116 ) (1,485 ) (3,530 )

(48,405

)

Total equity 245,988   208,631   7,460,828   6,715,838  
Total liabilities and equity

322,328

 

270,430

 

9,776,208

 

8,705,139

 
     
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS USD in Thousands NTD in Thousands
For three months ended March 31, 2017 and 2016 Mar 31,   Mar 31, Mar 31,   Mar 31,
2017 2016 2017 2016

Cash flows from operating activities

Income before income tax for the period 12,989 11,765 403,823 389,890
Depreciation and amortization 2,302 1,967 71,568 65,194
Share-based compensation cost 1,288 895 40,037 29,654
Interest income (12 ) (10 ) (367 ) (318 )
Income and expenses having no effect on cash flows 3,578   2,852   111,238   94,530  
Accounts receivable 2,969 (3,530 ) 90,058 (113,645 )
Inventories (13,151 ) (7,433 ) (398,857 ) (239,250 )
Other current assets 67 (3,151 ) 2,033 (101,598 )
Other non-current assets -   146   -   4,691  
Net changes in assets relating to operating activities (10,115 ) (13,968 ) (306,766 ) (449,802 )
Accounts payable 3,875 10,468 117,530 336,955
Other payables (2,336 ) (1,378 ) (70,866 ) (44,358 )
Other current liabilities 403   (2,230 ) 12,215   (71,795 )
Net changes in liabilities relating to operating activities 1,942   6,860   58,879   220,802  
Cash provided by operations 8,394   7,509   267,174   255,420  
Interest received 10 9 299 301
Interest payable (221 ) (208 ) (6,866 ) (6,886 )
Net cash provided by operating activities 8,183   7,310   260,607   248,835  

Cash flows from investing activities

Acquisition of equipment (1,322 ) (454 ) (41,096 ) (15,062 )
Acquisition of intangible assets (547 ) (299 ) (17,008 ) (9,909 )
Increase in refundable deposits (150 ) (66 ) (4,555 ) (2,123 )
Net cash used in investing activities (2,019 ) (819 ) (62,659 ) (27,094 )

Cash flows from financing activities

Proceeds from exercise of employee stock options 103 58 3,207 1,912
Purchase of treasury shares (116 ) - (3,530 ) -
Cash dividend regain from canceled share-based compensation 2   5   74   152  
Net cash (used in) provided by financing activities (11 ) 63   (249 ) 2,064  
Effect of exchange rate changes on cash and cash equivalents 87 20 (248,436 ) (68,458 )
(Decrease) increase in cash and cash equivalents 6,240 6,574 (50,737 ) 155,347
Cash and cash equivalents at beginning of period 124,987   87,961   4,030,839   2,887,751  
Cash and cash equivalents at end of period

131,227

  94,535  

3,980,102

 

3,043,098

 

Contacts

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

Release Summary

Parade Technologies Reports First Quarter 2017 Financial Results

Contacts

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