Press release

Parade Technologies Reports First Quarter 2021 Financial Results

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Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the first quarter fiscal year 2021 ended March 31, 2021, and provided guidance for the second quarter of fiscal year 2021.

Consolidated revenue was US$153.11 million and consolidated net income was US$36.44 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.46 (NT$13.13) and US$0.45 (NT$12.82), respectively. These results compared to consolidated revenue US$98.36 million and consolidated net income of US$20.69 million, or US$0.27 (NT$8.00) and US$0.26 (NT$7.79) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the first quarter of 2021 consolidated revenue increased 3.25% sequentially and was up 55.66% year-over-year.

The gross profit in the first quarter of 2021 was US$69.00 million, representing an increase of 6.87% from the previous quarter and an increase of 57.17% 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 2021:

  • Revenue: US$152.5 ~167.5 Million
  • Gross Margin: 42.5% ~45.5%
  • Operating Expense: US$29.5 ~30.5 Million

The financial figures detailed above for the first quarter of 2021 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,

2021

2020

 

2021

2020

2021

2020

2021

2020

 
Revenue

153,107

 

148,287

 

153,107

 

98,360

4,343,653

 

4,263,263

 

4,343,653

 

2,961,629

Cost of goods sold

84,111

 

83,727

 

84,111

 

54,462

2,386,235

 

2,407,154

 

2,386,235

 

1,639,853

Gross profit

68,996

 

64,560

 

68,996

 

43,898

1,957,418

 

1,856,109

 

1,957,418

 

1,321,776

Research & development expenses

17,503

 

17,094

 

17,503

 

13,898

496,562

 

491,457

 

496,562

 

418,478

Sales & marketing expenses

6,894

 

6,671

 

6,894

 

4,864

195,583

 

191,796

 

195,583

 

146,442

General & administrative expenses

4,986

 

4,686

 

4,986

 

3,641

141,463

 

134,724

 

141,463

 

109,645

Total operating expenses

29,383

 

28,451

 

29,383

 

22,403

833,608

 

817,977

 

833,608

 

674,565

Operating income

39,613

 

36,109

 

39,613

 

21,495

1,123,810

 

1,038,132

 

1,123,810

 

647,211

Non-operating income and (expenses)

(419

)

(388

)

(419

)

817

(11,888

)

(11,147

)

(11,888

)

24,608

Income before income taxes

39,194

 

35,721

 

39,194

 

22,312

1,111,922

 

1,026,985

 

1,111,922

 

671,819

Income tax expense

2,759

 

2,429

 

2,759

 

1,625

78,263

 

69,815

 

78,263

 

48,928

Net income

36,435

 

33,292

 

36,435

 

20,687

1,033,659

 

957,170

 

1,033,659

 

622,891

EPS – Basic (In Dollar)

$0.46

 

$0.42

 

$0.46

 

$0.27

$13.13

 

$12.12

 

$13.13

 

$8.00

Shares used in computing EPS-Basic (In thousands)

78,701

 

78,955

78,701

 

77,872

78,701

 

78,955

 

78,701

 

77,872

EPS – Diluted (In Dollar)

$0.45

 

$0.41

 

$0.45

 

$0.26

$12.82

 

$11.88

 

$12.82

 

$7.79

Shares used in computing EPS-Diluted (In thousands)

80,621

 

80,562

 

80,621

 

79,965

80,621

 

80,562

 

80,621

 

79,965

UNAUDITED CONSOLIDATED BALANCE SHEETS

USD in Thousands

NTD in Thousands

As of March 31, 2021 and 2020 Mar 31, Mar 31, Mar 31, Mar 31,

2021

2020

2021

2020

Current assets
Cash & cash equivalents

284,717

 

282,212

 

8,125,824

 

8,531,276

 

Accounts receivable, net

57,088

 

45,960

 

1,629,283

 

1,389,371

 

Inventories, net

60,143

 

31,576

 

1,716,478

 

954,540

 

Other current assets

17,539

 

11,289

 

500,583

 

341,257

 

Total current assets

419,487

 

371,037

 

11,972,168

 

11,216,444

 

Non-current assets
Property, plant and equipment, net

16,025

 

9,346

 

457,361

 

282,538

 

Right-of-use assets

9,903

 

5,581

 

282,617

 

168,721

 

Intangible assets

112,509

 

77,367

 

3,210,995

 

2,338,795

 

Deferred income tax assets

7,563

 

3,922

 

215,861

 

118,550

 

Other non-current assets

10,187

 

11,735

 

290,741

 

354,746

 

Total non-current assets

156,187

 

107,951

 

4,457,575

 

3,263,350

 

Total Assets

575,674

 

478,988

 

16,429,743

 

14,479,794

 

 
Current Liabilities
Accounts payable

34,686

 

28,035

 

989,944

 

847,490

 

Other payables

29,265

 

21,116

 

835,217

 

638,316

 

Current income tax liabilities

21,336

 

17,182

 

608,922

 

519,418

 

Lease liabilities – current

3,406

 

2,010

 

97,203

 

60,774

 

Other current liabilities

4,150

 

7,913

 

118,469

 

239,206

 

Total current liabilities

92,843

 

76,256

 

2,649,755

 

2,305,204

 

Non current Liabilities
Lease liabilities – non-current

6,497

 

3,571

 

185,414

 

107,947

 

Total non-current liabilities

6,497

 

3,571

 

185,414

 

107,947

 

Equity
Ordinary shares

26,615

 

26,326

 

808,125

 

799,611

 

Capital reserves

138,106

 

104,245

 

4,165,865

 

3,171,706

 

Retained earnings

359,620

 

292,406

 

10,924,793

 

8,958,168

 

Other equity

(31,999

)

(20,520

)

(1,854,620

)

(761,117

)

Treasury shares

(16,008

)

(3,296

)

(449,589

)

(101,725

)

Total equity

476,334

 

399,161

 

13,594,574

 

12,066,643

 

Total liabilities and equity

575,674

 

478,988

 

16,429,743

 

14,479,794

 

 
 
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS USD in Thousands NTD in Thousands
For three months ended March 31, 2021 and 2020 Mar 31, Mar 31, Mar 31, Mar 31,

2021

2020

2021

2020

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

39,194

 

22,312

 

1,111,922

 

671,819

 

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

4,737

 

3,493

 

134,398

 

105,163

 

Loss on disposal of equipment

61

 

 

1,736

 

 

Share-based compensation cost

3,678

 

2,626

 

110,654

 

81,086

 

Interest income

(35

)

(815

)

(999

)

(24,539

)

Income and expenses having no effect on cash flows

8,441

 

5,304

 

245,789

 

161,710

 

Accounts receivable

(1,655

)

(6,016

)

(47,232

)

(181,852

)

Inventories

(3,436

)

(96

)

(98,063

)

(2,886

)

Other current assets

704

 

397

 

20,081

 

12,006

 

Net changes in assets relating to operating activities

(4,387

)

(5,715

)

(125,214

)

(172,732

)

Accounts payable

(8,884

)

1,811

 

(253,552

)

54,742

 

Other payables

(4,879

)

(3,524

)

(139,261

)

(106,531

)

Other current liabilities

(1,473

)

1,572

 

(42,028

)

47,511

 

Net changes in liabilities relating to operating activities

(15,236

)

(141

)

(434,841

)

(4,278

)

Cash provided by operations

28,012

 

21,760

 

797,656

 

656,519

 

Interest received

35

 

815

 

999

 

24,539

 

Income taxes paid

(1,578

)

(6,725

)

(44,756

)

(202,501

)

Net cash provided by operating activities

26,469

 

15,849

 

753,899

 

478,557

 

Cash flows from investing activities
Acquisition of equipment

(4,544

)

(1,117

)

(128,909

)

(33,633

)

Acquisition of intangible assets

(2,409

)

(240

)

(68,359

)

(7,216

)

Decrease in refundable deposits

125

 

12

 

3,562

 

349

 

Decrease (increase) in other prepayments

2,073

 

(2,537

)

59,165

 

(76,696

)

Net cash used in investing activities

(4,755

)

(3,882

)

(134,541

)

(117,196

)

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

131

 

298

 

3,724

 

8,967

 

Repayment of the principal portion of lease liabilities

(776

)

(413

)

(22,004

)

(12,421

)

Purchase of treasury shares

(10,038

)

 

(281,882

)

 

Distribution of cash dividends

(24,455

)

 

(733,641

)

 

Cash dividend regain from canceled share-based compensation

7

 

43

 

199

 

1,295

 

Net cash used in financing activities

(35,131

)

(72

)

(1,033,604

)

(2,159

)

Effect of exchange rate changes on cash and cash equivalents

(1,012

)

(64

)

20,391

 

66,074

 

Net (decrease) increase in cash and cash equivalents

(14,429

)

11,832

 

(393,855

)

425,276

 

Cash and cash equivalents at beginning of period

299,146

 

270,380

 

8,519,679

 

8,106,000

 

Cash and cash equivalents at end of period

284,717

 

282,212

 

8,125,824

 

8,531,276