Parade Technologies Reports Second Quarter 2022 Financial Results

Financial Highlights:

  • Q2 22 consolidated revenue US$216.70 million, compared with US$175.25 million in the year-ago quarter
  • Q2 22 consolidated net income US$60.94 million; Basic and Fully diluted after-tax EPS US$0.76 (NT$22.51) and US$0.75 (NT$22.18), 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 2022 ended June 30, 2022, and provided guidance for the third quarter of fiscal year 2022.

Consolidated revenue was US$216.70 million and consolidated net income was US$60.94 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.76 (NT$22.51) and US$0.75 (NT$22.18), respectively. These results compared to consolidated revenue US$175.25 million and consolidated net income of US$45.07 million, or US$0.57 (NT$15.98) and US$0.56 (NT$15.62) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the second quarter of 2022 consolidated revenue increased 2.84% sequentially and was up 23.65% year-over-year.

The gross profit in the second quarter of 2022 was US$102.36 million, representing an increase of 1.57% from the previous quarter and an increase of 22.60% 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 2022:

  • Revenue: US$150 ~166 Million
  • Gross Margin: 44.5% ~48.5%
  • Operating Expense: US$35 ~38 Million

The financial figures detailed above for the second quarter of 2022 have been audited 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.

CONSOLIDATED INCOME STATEMENTS 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,

2022

2022

2022

2021

2022

2021

2022

2022

2022

2021

2022

2021

 
Revenue

216,699

210,723

 

216,699

175,254

 

427,422

328,361

 

6,383,951

5,898,143

 

6,383,951

4,903,589

 

12,282,094

9,247,242

 

Cost of goods sold

114,340

109,948

 

114,340

91,767

 

224,288

175,878

 

3,368,457

3,077,451

 

3,368,457

2,567,624

 

6,445,908

4,953,859

 

Gross profit

102,359

100,775

 

102,359

83,487

 

203,134

152,483

 

3,015,494

2,820,692

 

3,015,494

2,335,965

 

5,836,186

4,293,383

 

Research & development expenses

21,483

21,226

 

21,483

19,088

 

42,709

36,591

 

632,873

594,124

 

632,873

534,076

 

1,226,997

1,030,638

 

Sales & marketing expenses

7,907

8,214

 

7,907

8,308

 

16,121

15,202

 

232,925

229,911

 

232,925

232,457

 

462,836

428,040

 

General & administrative expenses

6,549

6,449

 

6,549

5,898

 

12,998

10,884

 

192,942

180,508

 

192,942

165,030

 

373,450

306,493

 

Total operating expenses

35,939

35,889

 

35,939

33,294

 

71,828

62,677

 

1,058,740

1,004,543

 

1,058,740

931,563

 

2,063,283

1,765,171

 

Operating income

66,420

64,886

 

66,420

50,193

 

131,306

89,806

 

1,956,754

1,816,149

 

1,956,754

1,404,402

 

3,772,903

2,528,212

 

Non-operating income and (expenses)

566

(30

)

566

(115

)

536

(534

)

16,662

(825

)

16,662

(3,206

)

15,837

(15,094

)

Income before income taxes

66,986

64,856

 

66,986

50,078

 

131,842

89,272

 

1,973,416

1,815,324

 

1,973,416

1,401,196

 

3,788,740

2,513,118

 

Income tax expense

6,049

5,669

 

6,049

5,009

 

11,718

7,768

 

178,193

158,689

 

178,193

140,170

 

336,882

218,433

 

Net income

60,937

59,187

 

60,937

45,069

 

120,124

81,504

 

1,795,223

1,656,635

 

1,795,223

1,261,026

 

3,451,858

2,294,685

 

EPS – Basic (In Dollar)

$0.76

$0.75

 

$0.76

$0.57

 

$1.51

$1.03

 

$22.51

$20.91

 

$22.51

$15.98

 

$43.42

$29.12

 

Shares used in computing EPS-Basic (In thousands)

79,766

79,212

 

79,766

78,914

 

79,496

78,808

 

79,766

79,212

 

79,766

78,914

 

79,496

78,808

 

EPS – Diluted (In Dollar)

$0.75

$0.73

 

$0.75

$0.56

 

$1.48

$1.01

 

$22.18

$20.55

 

$22.18

$15.62

 

$42.67

$28.42

 

Shares used in computing EPS-Diluted (In thousands)

80,951

80,602

 

80,951

80,735

 

80,905

80,732

 

80,951

80,602

 

80,951

80,735

 

80,905

80,732

 

CONSOLIDATED BALANCE SHEETS

USD in Thousands

NTD in Thousands

As of June 30, 2022 and 2021

Jun 30,

Jun 30,

Jun 30,

 Jun 30,

 

2022

2021

2022

2021

Current assets  
Cash & cash equivalents  

408,717

 

285,336

 

12,147,059

 

7,949,466

 

Accounts receivable, net  

71,597

 

58,787

 

2,127,869

 

1,637,799

 

Inventories, net  

107,911

 

60,448

 

3,207,122

 

1,684,077

 

Other current assets  

25,492

 

18,279

 

757,629

 

509,243

 

Total current assets  

613,717

 

422,850

 

18,239,679

 

11,780,585

 

Non-current assets  
Property, plant and equipment, net  

17,920

 

16,276

 

532,593

 

453,465

 

Right-of-use assets  

6,759

 

9,489

 

200,863

 

264,360

 

Intangible assets  

106,129

 

114,072

 

3,154,145

 

3,178,062

 

Deferred income tax assets  

10,232

 

8,117

 

304,090

 

226,142

 

Other non-current assets  

78,140

 

73,918

 

2,322,312

 

2,059,345

 

Total non-current assets  

219,180

 

221,872

 

6,514,003

 

6,181,374

 

Total Assets  

832,897

 

644,722

 

24,753,682

 

17,961,959

 

   
Current Liabilities  
Accounts payable  

56,079

 

36,860

 

1,666,672

 

1,026,922

 

Other payables  

100,695

 

70,978

 

2,892,562

 

2,020,870

 

Current income tax liabilities  

30,317

 

21,099

 

901,030

 

587,826

 

Lease liabilities – current  

3,037

 

3,397

 

90,253

 

94,628

 

Other current liabilities  

13,823

 

4,007

 

410,818

 

111,645

 

Total current liabilities  

203,951

 

136,341

 

5,961,335

 

3,841,891

 

Non-current Liabilities  
Lease liabilities – non-current  

3,722

 

6,092

 

110,610

 

169,732

 

Total non-current liabilities  

3,722

 

6,092

 

110,610

 

169,732

 

Equity  
Ordinary shares  

26,740

 

26,636

 

811,895

 

808,705

 

Capital reserves  

138,074

 

142,358

 

4,188,380

 

4,281,780

 

Retained earnings  

500,731

 

369,703

 

14,948,952

 

11,167,756

 

Other equity  

(18,513

)

(31,453

)

(661,362

)

(2,168,732

)

Treasury shares  

(21,808

)

(4,955

)

(606,128

)

(139,173

)

Total equity  

625,224

 

502,289

 

18,681,737

 

13,950,336

 

Total liabilities and equity  

832,897

 

644,722

 

24,753,682

 

17,961,959

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

USD in Thousands

NTD in Thousands

FOR THE SIX MONTHS ENDED JUNE 30, 2022 and 2021

Jun 30,

 

Jun 30,

Jun 30,

 Jun 30,

 

2022

2021

2022

2021

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

131,842

 

89,272

 

3,788,740

 

2,513,118

 

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

11,081

 

12,225

 

318,238

 

344,389

 

Loss on disposal of equipment  

1

 

63

 

34

 

1,776

 

Share-based compensation cost  

16,451

 

13,356

 

479,230

 

389,558

 

Interest income  

(158

)

(49

)

(4,627

)

(1,392

)

Income and expenses having no effect on cash flows  

27,375

 

25,595

 

792,875

 

734,331

 

Accounts receivable  

(21,214

)

(3,354

)

(630,493

)

(93,442

)

Inventories  

(32,133

)

(3,741

)

(954,979

)

(104,223

)

Other current assets  

(31,800

)

(10,554

)

(893,882

)

(298,189

)

Net changes in assets relating to operating activities  

(85,147

)

(17,649

)

(2,479,354

)

(495,854

)

Accounts payable  

15,233

 

(6,710

)

452,730

 

(186,946

)

Other payables  

(1,814

)

1,814

 

(53,915

)

50,543

 

Other current liabilities  

3,779

 

(1,616

)

112,320

 

(45,027

)

Net changes in liabilities relating to operating activities  

17,198

 

(6,512

)

511,135

 

(181,430

)

Cash provided by operations  

91,268

 

90,706

 

2,613,396

 

2,570,165

 

Interest received  

158

 

49

 

4,627

 

1,392

 

Income taxes paid  

(816

)

(1,999

)

(23,433

)

(56,326

)

Income taxes received  

19

 

2

 

554

 

53

 

Net cash generated from operating activities  

90,629

 

88,758

 

2,595,144

 

2,515,284

 

Cash flows from investing activities  
Acquisition of equipment  

(3,854

)

(6,157

)

(110,678

)

(173,444

)

Acquisition of intangible assets  

(34

)

(81

)

(977

)

(2,292

)

Decrease (increase) in refundable deposits  

74

 

(66,311

)

2,193

 

(1,847,422

)

Increase in other prepayments  

(4,552

)

(3,938

)

(130,729

)

(110,926

)

Net cash used in investing activities  

(8,366

)

(76,487

)

(240,191

)

(2,134,084

)

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

2,376

 

143

 

68,228

 

4,036

 

Repayment of the principal portion of lease liabilities  

(1,931

)

(2,018

)

(55,475

)

(56,844

)

Purchase of treasury shares  

 

(10,038

)

 

(281,882

)

Treasury shares reissued to employees  

34,533

 

11,052

 

959,141

 

310,416

 

Distribution of cash dividends  

(40,752

)

(24,455

)

(1,147,980

)

(733,641

)

Cash dividend regain from canceled share-based compensation  

52

 

40

 

1,517

 

1,203

 

Net cash used in financing activities  

(5,722

)

(25,276

)

(174,569

)

(756,712

)

Effect of exchange rate changes  

(257

)

(805

)

764,932

 

(194,701

)

Net increase (decrease) in cash and cash equivalents  

76,284

 

(13,810

)

2,945,316

 

(570,213

)

Cash and cash equivalents at beginning of period  

332,433

 

299,146

 

9,201,743

 

8,519,679

 

Cash and cash equivalents at end of period  

408,717

 

285,336

 

12,147,059

 

7,949,466

 

 

Contacts

Parade Technologies

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

[email protected]

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