Parade Technologies Reports Second Quarter 2019 Financial Results

Financial Highlights:

  • Q219 consolidated revenue US$90.70 million, compared with US$75.67 million in the year-ago quarter
  • Q219 consolidated net income US$17.57 million; Basic and Fully diluted after-tax EPS US$0.23 (NT$7.10) and US$0.22 (NT$6.84), respectively

SAN JOSE, Calif.–(BUSINESS WIRE)–Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the second quarter fiscal year 2019 ended June 30, 2019, and provided guidance for the third quarter of fiscal year 2019.

Consolidated revenue was US$90.70 million and consolidated net income was US$17.57 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.23 (NT$7.10) and US$0.22 (NT$6.84), respectively. These results compared to consolidated revenue US$75.67 million and consolidated net income of US$12.32 million, or US$0.16 (NT$4.80) and US$0.16 (NT$4.63) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the second quarter of 2019 consolidated revenue decreased 3.22% sequentially and was up 19.86% year-over-year.

The gross profit in the second quarter of 2019 was US$38.10 million, representing a decrease of 2.91% from the previous quarter and an increase of 22.71% 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 2019:

  • Revenue: US$95 ~105 Million
  • Gross Margin: 40% ~43%
  • Operating Expense: US$20.75 ~21.75 Million

The financial figures detailed above for the second quarter of 2019 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 Six Months ended Sequential Quarter Three Months ended Six Months ended

Jun 30,

 

Mar 31,

 

Jun 30,

 

Jun 30,

 

Jun 30,

 

Jun 30,

 

Jun 30,

 

Mar 31,

 

Jun 30,

 

Jun 30,

 

Jun 30,

 

Jun 30,

2019

 

2019

 

2019

 

2018

 

 

2019

 

2018

 

2019

 

2019

 

2019

 

2018

 

 

2019

 

2018

 
Revenue

90,703

93,720

90,703

75,671

 

184,423

156,324

 

2,824,499

2,889,378

2,824,499

2,252,718

 

5,713,877

4,615,859

 

Cost of goods sold

52,602

54,478

52,602

44,621

 

107,080

92,336

 

1,638,014

1,679,571

1,638,014

1,328,378

 

3,317,585

2,726,415

 

Gross profit

38,101

39,242

38,101

31,050

 

77,343

63,988

 

1,186,485

1,209,807

1,186,485

924,340

 

2,396,292

1,889,444

 

Research & development expenses

13,353

12,787

13,353

12,851

 

26,140

25,053

 

415,819

394,207

415,819

382,557

 

810,026

740,083

 

Sales & marketing expenses

4,463

4,535

4,463

3,621

 

8,998

7,747

 

138,991

139,814

138,991

107,788

 

278,805

228,680

 

General & administrative expenses

3,123

3,100

3,123

2,703

 

6,223

5,455

 

97,252

95,577

97,252

80,474

 

192,829

161,095

 

Total operating expenses

20,939

20,422

20,939

19,175

 

41,361

38,255

 

652,062

629,598

652,062

570,819

 

1,281,660

1,129,858

 

Operating income

17,162

18,820

17,162

11,875

 

35,982

25,733

 

534,423

580,209

534,423

353,521

 

1,114,632

759,586

 

Non-operating income and expenses

1,083

525

1,083

86

 

1,608

28

 

33,701

16,201

33,701

2,559

 

49,902

859

 

Income before income taxes

18,245

19,345

18,245

11,961

 

37,590

25,761

 

568,124

596,410

568,124

356,080

 

1,164,534

760,445

 

Income tax expense (benefit)

678

755

678

(361

)

1,433

(371

)

21,110

23,273

21,110

(10,738

)

44,383

(11,021

)

Net income

17,567

18,590

17,567

12,322

 

36,157

26,132

 

547,014

573,137

547,014

366,818

 

1,120,151

771,466

 

EPS – Basic (In Dollar)

$0.23

$0.24

$0.23

$0.16

 

$0.47

$0.34

 

$7.10

$7.42

$7.10

$4.80

 

$14.57

$10.10

 

Shares used in computing EPS-Basic (In thousands)

77,008

77,228

77,008

76,418

 

76,883

76,386

 

77,008

77,228

77,008

76,418

 

76,883

76,386

 

EPS – Diluted (In Dollar)

$0.22

$0.23

$0.22

$0.16

 

$0.45

$0.33

 

$6.84

$7.13

$6.84

$4.63

 

$14.00

$9.72

 

Shares used in computing EPS-Diluted (In thousands)

80,012

80,332

80,012

79,243

 

80,006

79,396

 

80,012

80,332

80,012

79,243

 

80,006

79,396

 

UNAUDITED CONSOLIDATED BALANCE SHEETS USD in Thousands NTD in Thousands
As of June 30, 2019 and 2018 Jun 30, Jun 30, Jun 30, Jun 30,

2019

2018

2019

2018

Current assets
Cash & cash equivalents

241,339

 

175,166

 

7,495,983

 

5,335,542

 

Accounts receivable, net

43,527

 

44,437

 

1,351,940

 

1,353,561

 

Inventories, net

36,945

 

41,909

 

1,147,504

 

1,276,542

 

Prepayments

7,807

 

6,328

 

242,492

 

192,765

 

Other current assets

10,785

 

8,953

 

334,995

 

272,707

 

Total current assets

340,403

 

276,793

 

10,572,914

 

8,431,117

 

Non-current assets
Property, plant and equipment, net

9,251

 

8,054

 

287,329

 

245,336

 

Right-of-use assets

7,017

 

 

217,949

 

 

Intangible assets

82,160

 

85,612

 

2,551,886

 

2,607,748

 

Deferred income tax assets

2,465

 

1,564

 

76,565

 

47,626

 

Other non-current assets

876

 

832

 

27,217

 

25,323

 

Total non-current assets

101,769

 

96,062

 

3,160,946

 

2,926,033

 

Total Assets

442,172

 

372,855

 

13,733,860

 

11,357,150

 

 
Current Liabilities
Accounts payable

30,762

 

20,877

 

955,482

 

635,915

 

Other payables

55,496

 

52,343

 

1,694,109

 

1,549,249

 

Current income tax liabilities

17,443

 

18,971

 

541,772

 

577,845

 

Lease liabilities – current

2,056

 

 

63,867

 

 

Other current liabilities

6,593

 

5,050

 

204,784

 

153,816

 

Total current liabilities

112,350

 

97,241

 

3,460,014

 

2,916,825

 

Non current Liabilities
Lease liabilities – non-current

4,961

 

 

154,082

 

 

Total non current liabilities

4,961

 

 

154,082

 

 

Equity
Ordinary shares

26,085

 

25,840

 

792,144

 

784,606

 

Capital reserves

94,579

 

85,884

 

2,869,927

 

2,601,913

 

Retained earnings

228,239

 

183,887

 

7,019,459

 

5,680,908

 

Other equity

(17,450

)

(17,237

)

(358,316

)

(546,414

)

Treasury shares

(6,592

)

(2,760

)

(203,450

)

(80,688

)

Total equity

324,861

 

275,614

 

10,119,764

 

8,440,325

 

Total liabilities and equity

442,172

 

372,855

 

13,733,860

 

11,357,150

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

USD in Thousands

NTD in Thousands

For six months ended June 30, 2019 and 2018

Jun 30,

Jun 30,

Jun 30,

Jun 30,

2019

2018

2019

2018

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

37,590

 

25,761

 

1,164,534

 

760,445

 

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

7,364

 

5,615

 

228,125

 

165,878

 

Share-based compensation cost

4,303

 

3,737

 

132,721

 

110,404

 

Interest income

(1,638

)

(41

)

(50,792

)

(1,212

)

Income and expenses having no effect on cash flows

10,029

 

9,312

 

310,054

 

275,070

 

Accounts receivable

2,418

 

7,835

 

75,088

 

238,655

 

Inventories

(1,144

)

(7,634

)

(35,543

)

(232,535

)

Prepayments

(1,072

)

(2,395

)

(33,282

)

(72,966

)

Other current assets

50

 

(3,196

)

1,575

 

(97,356

)

Net changes in assets relating to operating activities

252

 

(5,390

)

7,838

 

(164,202

)

Accounts payable

(864

)

(4,911

)

(26,837

)

(149,577

)

Other payables

(721

)

(1,472

)

81,336

 

(44,842

)

Other current liabilities

2,619

 

(3,231

)

(22,402

)

(98,402

)

Net changes in liabilities relating to operating activities

1,034

 

(9,613

)

32,097

 

(292,821

)

Cash provided by operations

48,905

 

20,070

 

1,514,523

 

578,492

 

Interest received

1,637

 

29

 

50,733

 

855

 

Income taxes paid

(490

)

(580

)

(15,192

)

(17,135

)

Net cash provided by operating activities

50,052

 

19,519

 

1,550,064

 

562,212

 

Cash flows from investing activities
Acquisition of equipment

(676

)

(860

)

(20,936

)

(25,407

)

Acquisition of intangible assets

(3,149

)

(953

)

(97,547

)

(28,157

)

Increase in refundable deposits

(67

)

(13

)

(2,089

)

(407

)

Net cash used in investing activities

(3,892

)

(1,826

)

(120,572

)

(53,971

)

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

338

 

367

 

10,457

 

10,835

 

Purchase of treasury shares

 

(2,760

)

 

(80,688

)

Repayment of the principal portion of lease liabilities

(989

)

 

(30,630

)

 

Cash dividend regain from canceled share-based compensation

23

 

16

 

689

 

494

 

Net cash used in financing activities

(628

)

(2,377

)

(19,484

)

(69,359

)

Effect of exchange rate changes on cash and cash equivalents

106

 

(205

)

74,047

 

133,433

 

Increase in cash and cash equivalents

45,638

 

15,111

 

1,484,055

 

572,315

 

Cash and cash equivalents at beginning of period

195,701

 

160,055

 

6,011,928

 

4,763,227

 

Cash and cash equivalents at end of period

241,339

 

175,166

 

7,495,983

 

5,335,542

 

 

Contacts

Parade Technologies

Yo-Ming Chang, +886-2-2627-9109

[email protected]

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