Parade Technologies Reports Second Quarter 2016 Financial Results

Financial Highlights:

  • Q216 consolidated revenue US$68.78 million, compared with US$49.30 million in the year-ago quarter
  • Q216 consolidated net income US$10.77 million; Basic and Fully diluted after-tax EPS US$0.14 (NT$4.66) and US$0.14 (NT$4.56), 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 second quarter fiscal 2016 ended June 30, 2016, and provided guidance for the third quarter of fiscal year 2016.

Consolidated revenue was US$68.78 million and consolidated net income was US$10.77 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.14 (NT$4.66) and US$0.14 (NT$4.56), respectively. These results compared to consolidated revenue US$49.30 million and consolidated net income of US$8.78 million, or US$0.12 (NT$3.63) and US$0.12 (NT$3.56) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the second quarter of 2016 consolidated revenue decreased 2.62% sequentially and was up 39.51% year-over-year.

The gross profit in the second quarter of 2016 was US$28.16 million, representing a decrease of 3.07% from the previous quarter and an increase of 38.44% compared to the same quarter of last year.

Based on current business outlook, Parade is providing the following guidance for the third quarter of fiscal 2016:

  • Revenue: US$63 ~69 Million
  • Gross Margin: 41% ~44%
  • Operating Expense: US$16.5 ~17.5 Million

In May 2016, Parade announced a new 2-lane 8Gb/s PCIe and SATA redriver. The PS8559 cleans up and re-transmits the PCIe or SATA signal, both increasing data transmission reliability and enabling system design flexibility. By supporting PCIe and SATA, the PS8559 is ideal for the SATA Express interface which utilizes both of these interface standards and is used for PC storage devices. The support of two PCIe lanes also makes the PS8559 well suited for the newer M.2 interface used in PCs and laptops. Other applications for the PS8559 include server-class PCIe SSD and PCIe cabling.

In June 2016, Parade also announced a new 16-Channel 8Gb/s PCIe redriver. The PS8566 removes signal distortion that results when sending high speed data over an electrical interface. The PS8566 integrates 16 independent redriver channels with low power consumption. The support of a 16-Channel bus width makes it ideal for workstations and data center applications including storage and servers.

The financial figures detailed above for the second quarter of 2016 have been 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 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 Six Months ended Sequential Quarter   Three Months ended Six Months ended
June 30, March 31, June 30, June 30, June 30, June 30, June 30, March 31, June 30, June 30, June 30, June 30,
2016 2016 2016 2015 2016 2015 2016 2016 2016 2015 2016 2015
 
Revenue 68,783 70,631 68,783 49,304 139,414 97,459 2,229,934 2,340,738

2,229,934

1,520,525 4,570,672 3,038,382
Cost of goods sold   40,621     41,576     40,621     28,961   82,197   57,695   1,316,940     1,377,840     1,316,940     893,165   2,694,780   1,798,868
Gross profit   28,162     29,055     28,162     20,343   57,217   39,764   912,994     962,898     912,994     627,360   1,875,892   1,239,514
Research & development expenses 11,056 10,838 11,056 6,293 21,894 12,420 358,430 359,186 358,430 194,072 717,616 387,197
Sales & marketing expenses 4,232 4,202 4,232 2,479 8,434 4,808 137,224 139,240 137,224 76,454 276,464 149,874
General & administrative expenses   2,163     2,248     2,163     1,969   4,411   3,902   70,088     74,513     70,088     60,714   144,601   121,644
Total operating expenses   17,451     17,288     17,451     10,741   34,739   21,130   565,742     572,939     565,742     331,240   1,138,681   658,715
Operating income   10,711     11,767     10,711     9,602   22,478   18,634   347,252     389,959     347,252     296,120   737,211   580,799
Non-operating income and expenses   34     (2 )   34     90   32   118   1,087     (69 )   1,087     2,780   1,018   3,669
Income before income taxes   10,745     11,765     10,745     9,692   22,510   18,752   348,339     389,890     348,339     298,900   738,229   584,468
Income tax expense   (20 )   976     (20 )   915   956   1,877   (649 )   32,346     (649 )   28,209   31,697   58,523
Net income   10,765     10,789     10,765     8,777   21,554   16,875   348,988     357,544     348,988     270,691   706,532   525,945
EPS - Basic (In Dollar) $ 0.14 $ 0.14 $ 0.14 $ 0.12 $ 0.29 $ 0.23 $ 4.66 $ 4.77 $ 4.66 $ 3.63 $ 9.43 $ 7.05
Shares used in computing EPS-Basic (In thousands) 74,940 74,921 74,940 74,585 74,941 74,646 74,940 74,921 74,940 74,585 74,941 74,646
EPS - Diluted (In Dollar) $ 0.14 $ 0.14 $ 0.14 $ 0.12 $ 0.28 $ 0.22 $ 4.56 $ 4.68 $ 4.56 $ 3.56 $ 9.23 $ 6.92
Shares used in computing EPS-Diluted (In thousands)   76,527       76,335       76,527       75,981     76,536     76,052   76,527       76,335       76,527       75,981     76,536     76,052
       
UNAUDITED CONSOLIDATED BALANCE SHEETS USD in Thousands NTD in Thousands
As of June 30, 2016 and 2015 June 30,
2016
June 30,
2015
June 30,
2016
June 30,
2015
Current assets
Cash & cash equivalents 108,063 168,859 3,488,262 5,211,001
Accounts receivable, net 34,883 27,182 1,126,026 838,845
Inventories, net 27,442 18,230 885,834 562,577
Other current assets 9,826   11,471   317,188   354,001
Total current assets 180,214   225,742   5,817,310   6,966,424
Non-current assets
Property, plant and equipment, net 4,683 4,363 151,164 134,635
Intangible assets 90,764 165 2,929,879 5,076
Deferred income tax assets 2,167 176 69,949 5,443
Other non-current assets 884   1,211   28,526   37,357
Total non-current assets 98,498   5,915   3,179,518   182,511
Total Assets 278,712   231,657   8,996,828   7,148,935
 
Current Liabilities
Accounts payable 23,760 16,863 766,972 520,406
Other payables 25,873 22,534 843,525 697,117
Current tax liabilities 14,060 10,624 453,862 327,853
Other current liabilities 6,308   4,038   203,612   124,619
Total current liabilities 70,001   54,059   2,267,971   1,669,995
Equity
Ordinary shares 25,085 24,895 761,228 755,326
Capital reserves 60,753 55,744 1,828,255 1,669,845
Retained earnings 130,689 101,543 3,988,371 3,045,088
Treasury shares (1,485 ) (48,405 )
Other equity (6,331 ) (4,584 ) 199,408   8,681
Total equity 208,711   177,598   6,728,857   5,478,940
Total liabilities and equity 278,712   231,657   8,996,828   7,148,935
   
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS USD in Thousands NTD in Thousands
For six months ended June 30, 2016 and 2015 June 30,
2016
  June 30,
2015
June 30,
2016
  June 30,
2015

Cash flows from operating activities

Income before income tax for the period 22,510 18,752 738,229 584,468
Depreciation and amortization 3,977 855 130,373 26,666
Loss on disposal of equipment - 46 - 1,435
Share-based compensation cost 1,807 1,491 59,226 46,487
Interest income (19 )   (31 ) (628 ) (981 )
Income and expenses having no effect on cash flows 5,765     2,361   188,971   73,607  
Accounts receivable 3,279 7,093 105,856 218,885
Inventories (8,747 ) (4,587 ) (282,340 ) (141,563 )
Other current assets (1,784 ) (5,443 ) (57,759 ) (168,007 )
Other non-current assets 194     291   6,272   8,994  
Net changes in assets relating to operating activities (7,058 )   (2,646 ) (227,971 ) (81,691 )
Accounts payable 2,381 6,070 76,850 187,309
Other payables 2,200 (814 ) 71,015 (25,132 )
Other current liabilities (1,910 )   298   (61,656 ) 9,209  
Net changes in liabilities relating to operating activities 2,671     5,554   86,209   171,386  
Cash provided by operations 23,888     24,021   785,438   747,770  
Interest received (81 ) $ 33 (2,623 ) 1,033
Income taxes paid (375 ) $ (405 ) (12,307 ) (12,622 )
Net cash provided by operating activities 23,432     23,649   770,508   736,181  

Cash flows from investing activities

Decrease in available for sale financial assets - current

- 1,086 - 33,507
Acquisition of equipment (1,041 ) (1,332 ) (34,113 ) (41,513 )
Acquisition of intangible assets (2,518 ) (18 ) (82,552 ) (572 )
Decrease in refundable deposits 25     0   819   13  
Net cash used in investing activities (3,534 )   (264 ) (115,846 ) (8,565 )

Cash flows from financing activities

Proceeds from exercise of employee stock options 301 84 9,857 2,615
Purchase of treasury shares - (2,461 ) - (77,497 )
Treasury shares reissued to employees - 2,461 - 77,497
Cash dividend regain from canceled share-based compensation 5     1   158   27  
Net cash provided by financing activities 306     85   10,016   2,642  
Effect of exchange rate changes on cash and cash equivalents (102 ) 36 (64,166 ) (119,691 )
Increase in cash and cash equivalents 20,102 23,506 600,511 610,567
Cash and cash equivalents at beginning of period 87,961     145,353   2,887,751   4,600,434  
Cash and cash equivalents at end of period 108,063     168,859   3,488,262   5,211,001  

Contacts

Parade Technologies
Investor Relations Contact:
Yo-Ming Chang, +886.2.2627.9109
ir@paradetech.com

Release Summary

Parade Technologies Reports Second Quarter 2016 Financial Results

Contacts

Parade Technologies
Investor Relations Contact:
Yo-Ming Chang, +886.2.2627.9109
ir@paradetech.com