Parade Technologies Reports First Quarter 2020 Financial Results

Financial Highlights:

  • Q120 consolidated revenue US$98.36 million, compared with US$93.72 million in the year-ago quarter
  • Q120 consolidated net income US$20.69 million; Basic and Fully diluted after-tax EPS US$0.27 (NT$8.00) and US$0.26 (NT$7.79), respectively

SAN JOSE, Calif.--()--Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the first quarter fiscal year 2020 ended March 31, 2020, and provided guidance for the second quarter of fiscal year 2020.

Consolidated revenue was US$98.36 million and consolidated net income was US$20.69 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.27 (NT$8.00) and US$0.26 (NT$7.79), respectively. These results compared to consolidated revenue US$93.72 million and consolidated net income of US$18.59 million, or US$0.24 (NT$7.42) and US$0.23 (NT$7.13) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the first quarter of 2020 consolidated revenue increased 2.27% sequentially and was up 4.95% year-over-year.

The gross profit in the first quarter of 2020 was US$43.90 million, representing an increase of 3.87% from the previous quarter and an increase of 11.86% 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 2020:

  • Revenue: US$105 ~115 Million
  • Gross Margin: 41.5% ~44.5%
  • Operating Expense: US$23 ~24 Million

The financial figures detailed above for the first quarter of 2020 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,

2020

2019

2020

2019

2020

2019

2020

2019

 
Revenue

98,360

96,180

98,360

93,720

2,961,629

2,931,558

2,961,629

2,889,378

Cost of goods sold

54,462

53,919

54,462

54,478

1,639,853

1,643,425

1,639,853

1,679,571

Gross profit

43,898

42,261

43,898

39,242

1,321,776

1,288,133

1,321,776

1,209,807

Research & development expenses

13,898

13,962

13,898

12,787

418,478

425,578

418,478

394,207

Sales & marketing expenses

4,864

4,821

4,864

4,535

146,442

146,912

146,442

139,814

General & administrative expenses

3,641

3,704

3,641

3,100

109,645

112,903

109,645

95,577

Total operating expenses

22,403

22,487

22,403

20,422

674,565

685,393

674,565

629,598

Operating income

21,495

19,774

21,495

18,820

647,211

602,740

647,211

580,209

Non-operating income and expenses

817

1,007

817

525

24,608

30,678

24,608

16,201

Income before income taxes

22,312

20,781

22,312

19,345

671,819

633,418

671,819

596,410

Income tax expense

1,625

66

1,625

755

48,928

2,001

48,928

23,273

Net income

20,687

20,715

20,687

18,590

622,891

631,417

622,891

573,137

EPS - Basic (In Dollar)

$0.27

$0.27

$0.27

$0.24

$8.00

$8.18

$8.00

$7.42

Shares used in computing EPS-Basic (In thousands)

77,872

77,194

77,872

77,228

77,872

77,194

77,872

77,228

EPS - Diluted (In Dollar)

$0.26

$0.26

$0.26

$0.23

$7.79

$7.98

$7.79

$7.13

Shares used in computing EPS-Diluted (In thousands)

79,965

79,132

79,965

80,332

79,965

79,132

79,965

80,332

UNAUDITED CONSOLIDATED BALANCE SHEETS USD in Thousands NTD in Thousands
As of March 31, 2020 and 2019 Mar 31, Mar 31, Mar 31, Mar 31,

2020

 

2019

 

2020

 

2019

 

Current assets
Cash & cash equivalents

282,212

 

203,678

 

8,531,276

 

6,277,354

 

Accounts receivable, net

45,960

 

51,892

 

1,389,371

 

1,599,309

 

Inventories, net

31,576

 

35,399

 

954,540

 

1,090,995

 

Prepayments

10,881

 

6,195

 

328,922

 

190,929

 

Other current assets

11,289

 

9,624

 

341,257

 

296,618

 

Total current assets

381,918

 

306,788

 

11,545,366

 

9,455,205

 

Non-current assets
Property, plant and equipment, net

9,346

 

10,047

 

282,538

 

309,639

 

Right-of-use assets

5,581

 

6,590

 

168,721

 

203,108

 

Intangible assets

77,367

 

82,812

 

2,338,795

 

2,552,250

 

Deferred income tax assets

3,922

 

2,239

 

118,550

 

69,009

 

Other non-current assets

854

 

883

 

25,824

 

27,232

 

Total non-current assets

97,070

 

102,571

 

2,934,428

 

3,161,238

 

Total Assets

478,988

 

409,359

 

14,479,794

 

12,616,443

 

 
Current Liabilities
Accounts payable

28,035

 

23,454

 

847,490

 

722,867

 

Other payables

21,116

 

17,767

 

638,316

 

547,571

 

Current income tax liabilities

17,182

 

16,800

 

519,418

 

517,773

 

Lease liabilities - current

2,010

 

2,055

 

60,774

 

63,333

 

Other current liabilities

7,913

 

6,921

 

239,206

 

213,295

 

Total current liabilities

76,256

 

66,997

 

2,305,204

 

2,064,839

 

Non current Liabilities
Lease liabilities - non-current

3,571

 

4,535

 

107,947

 

139,775

 

Total non current liabilities

3,571

 

4,535

 

107,947

 

139,775

 

Equity
Ordinary shares

26,326

 

26,058

 

799,611

 

791,299

 

Capital reserves

104,245

 

93,031

 

3,171,706

 

2,812,895

 

Retained earnings

292,406

 

243,192

 

8,958,168

 

7,452,955

 

Other equity

(20,520

)

(17,862

)

(761,117

)

(441,870

)

Treasury shares

(3,296

)

(6,592

)

(101,725

)

(203,450

)

Total equity

399,161

 

337,827

 

12,066,643

 

10,411,829

 

Total liabilities and equity

478,988

 

409,359

 

14,479,794

 

12,616,443

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS USD in Thousands NTD in Thousands
For three months ended March 31, 2020 and 2019 Mar 31, Mar 31, Mar 31, Mar 31,

2020

 

2019

 

2020

 

2019

 

Cash flows from operating activities
Income before income tax for the period

22,312

 

19,345

 

671,819

 

596,410

 

Depreciation and amortization (including the right-of-use assets)

3,493

 

3,661

 

105,163

 

112,876

 

Share-based compensation cost

2,626

 

2,118

 

81,086

 

65,334

 

Interest income

(815

)

(654

)

(24,539

)

(20,155

)

Income and expenses having no effect on cash flows

5,304

 

5,125

 

161,710

 

158,055

 

Accounts receivable

(6,016

)

(5,948

)

(181,852

)

(183,308

)

Inventories

(96

)

402

 

(2,886

)

12,374

 

Prepayments

(2,537

)

538

 

(76,696

)

16,665

 

Other current assets

397

 

1,215

 

12,006

 

37,351

 

Net changes in assets relating to operating activities

(8,252

)

(3,793

)

(249,428

)

(116,918

)

Accounts payable

1,811

 

(8,172

)

54,742

 

(251,861

)

Other payables

(3,524

)

(2,581

)

(106,531

)

(79,566

)

Other current liabilities

1,572

 

(394

)

47,511

 

(12,137

)

Net changes in liabilities relating to operating activities

(141

)

(11,147

)

(4,278

)

(343,564

)

Cash provided by operations

19,223

 

9,530

 

579,823

 

293,983

 

Interest received

815

 

654

 

24,539

 

20,155

 

Income tax paid

(6,725

)

(235

)

(202,501

)

(7,238

)

Net cash provided by operating activities

13,313

 

9,949

 

401,861

 

306,900

 

Cash flows from investing activities
Acquisition of equipment

(1,117

)

(418

)

(33,633

)

(12,899

)

Acquisition of intangible assets

(240

)

(1,620

)

(7,216

)

(49,944

)

Decrease (Increase) in refundable deposits

12

 

(75

)

349

 

(2,298

)

Net cash used in investing activities

(1,345

)

(2,113

)

(40,500

)

(65,141

)

Cash flows from financing activities
Proceeds from exercise of employee stock options

298

 

337

 

8,967

 

10,390

 

Repayment of the principal portion of lease liabilities

(413

)

(477

)

(12,422

)

(14,691

)

Cash dividend regain from canceled share-based compensation

43

 

15

 

1,295

 

448

 

Net cash used in financing activities

(72

)

(125

)

(2,160

)

(3,853

)

Effect of exchange rate changes on cash and cash equivalents

(64

)

266

 

66,075

 

27,520

 

Net Increase in cash and cash equivalents

11,832

 

7,977

 

425,276

 

265,426

 

Cash and cash equivalents at beginning of period

270,380

 

195,701

 

8,106,000

 

6,011,928

 

Cash and cash equivalents at end of period

282,212

 

203,678

 

8,531,276

 

6,277,354

 

 

Contacts

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

Release Summary

Parade Technologies Reports First Quarter 2020 Financial Results

Contacts

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