Financial Highlights:
- Q224 consolidated revenue US$120.87 million, compared with US$104.18 million in the year-ago quarter
- Q224 consolidated net income US$17.58 million; Basic and Fully diluted after-tax EPS US$0.22 (NT$7.11) and US$0.22 (NT$7.09), 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 2024 ended June 30, 2024, and provided guidance for the third quarter of fiscal year 2024.
Consolidated revenue was US$120.87 million and consolidated net income was US$17.58 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.22 (NT$7.11) and US$0.22 (NT$7.09), respectively. These results compared to consolidated revenue US$104.18 million and consolidated net income of US$13.98 million, or US$0.18 (NT$5.44) and US$0.18 (NT$5.40) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the second quarter of 2024 consolidated revenue decreased 0.34% sequentially and was up 16.02% year-over-year.
The gross profit in the second quarter of 2024 was US$51.28 million, representing a decrease of 1.31% from the previous quarter and an increase of 11.97% compared to the same quarter of last year.
On June 26, 2024, Parade announced PS8830 USB4/TBT4 retimer shipping in key OEM customer Copilot+ PCs based on Snapdragon X Elite and Snapdragon X Plus platforms which offer game-changing AI performance and efficiency. The PS8830 USB4/TBT4 retimer is optimized for use with the Snapdragon X Elite and Snapdragon X Plus platforms. The PS8830 is compliant with USB-IF USB4 specification supporting up to Gen 3×2 40Gbps (2x 20Gbps) and Thunderbolt 4 featuring TBT 3.0 up to 41.25Gbps (2x 20.625Gbps). USB4 tunneling of DP 1.4a and USB 3.2, and DP 2.1 alt mode up to UHBR20 are supported. Customer implementations with Snapdragon X Elite and Snapdragon X Plus platforms may also include Parade PS185 DP-HDMI 2.0 converter for adding HDMI connectivity, PS8719 USB 3.2 Gen 1 redriver and PS8811 USB3.2 Gen 2 retimer for USB-A connectivity, benefiting from their proven performance and industry leading compatibility.
On July 31, 2024, Parade announced the availability of the PS8778 USB4 Gen 3 x2 / TBT4 / DP 2.1 Alt Mode linear redriver for NB/PC, mobile workstation and active cable solutions. The PS8778 supports up to USB4 Gen 3 x2 or 2x 20Gbps, TBT4 2x 20.625Gbps, and DP 2.1 UHBR20 Alt Mode. It implements USB4, USB 3.2 and DP 2.1a power management including Modern Standby (<1mW) and DP 2.1a Advanced Link Power Management (ALPM). The low power design greatly extends the battery life of mobile devices as well as minimizing power use in USB4 active cables. PS8778 comes in a very small package, ideal for space constrained designs. PS8778 extends the overall system channel length by providing additional loss compensation when placed between the SoC (USB4 router) and USB4 retimer such as the PS8833, in a cascade configuration. PS8778 also enables USB4 cables much longer than the 0.8 meter or 2.6 feet limit for a USB4 Gen 3 passive cable, without degrading the performance.
On August 5, 2024, Parade announced PS8833 USB4/TBT4 retimer shipping in AI PCs powered by AMD Ryzen AI 300 Series processors, which feature the new “Zen 5” high performance CPU cores and integrated AI engine for enhanced AI performance. USB4 is becoming ubiquitous on notebook and desktop PCs. The PS8833 USB4/TBT4 retimer is optimized for AMD’s new AI enhanced processor platform. It also allows OEMs to easily upgrade existing platforms from the PS8830 USB3/TBT4 retimer to extend product longevity. The PS8833 is compliant with USB-IF USB4 specification up to Gen 3 or 40Gbps (2x 20Gbps) and Thunderbolt 4 featuring TBT 3.0 up to 41.25Gbps (2x 20.625Gbps). USB4 tunneling of DP 1.4a and USB 3.2, and DP 2.1 alt mode up to UHBR20 are supported. PS8833 features low power consumption in USB4 operation and low power states, greatly extending battery power operations. Customer implementations of AMD Ryzen AI 300 Series processor platform may also include Parade PS8419/PS8219/PS8210 HDMI 2.1 pin compatible retimer/redrivers for enhanced HDMI connectivity, and PS8811 USB3.2 Gen 2 retimer for USB-A connectivity, benefiting from the proven performance and industry leading compatibility.
Based on current business outlook, Parade is providing the following guidance for the third quarter of fiscal 2024:
- Revenue: US$130 ~144 Million
- Gross Margin: 42% ~46%
- Operating Expense: US$32.5 ~35.5 Million
The financial figures detailed above for the second quarter of 2024 have been audited by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (“TPEx”) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
Parade Technologies, Ltd. and Subsidiaries.
The reader is advised that these consolidated financial statements have been prepared originally in NT$ 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, | ||||||||||||||||||||||||||||
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
| Revenue |
|
120,871 |
|
|
121,278 |
|
|
120,871 |
|
|
104,178 |
|
|
242,149 |
|
204,168 |
|
3,910,184 |
|
3,814,192 |
|
3,910,184 |
|
3,199,298 |
|
7,724,376 |
|
6,239,010 |
|||||||||||
| Cost of goods sold |
|
69,593 |
|
|
69,321 |
|
|
69,593 |
|
|
58,380 |
|
|
138,914 |
|
114,327 |
|
2,251,323 |
|
2,180,148 |
|
2,251,323 |
|
1,792,845 |
|
4,431,471 |
|
3,493,642 |
|||||||||||
| Gross profit |
|
51,278 |
|
|
51,957 |
|
|
51,278 |
|
|
45,798 |
|
|
103,235 |
|
89,841 |
|
1,658,861 |
|
1,634,044 |
|
1,658,861 |
|
1,406,453 |
|
3,292,905 |
|
2,745,368 |
|||||||||||
| Research & development expenses |
|
23,158 |
|
|
22,845 |
|
|
23,158 |
|
|
20,293 |
|
|
46,003 |
|
40,185 |
|
749,173 |
|
718,474 |
|
749,173 |
|
623,198 |
|
1,467,647 |
|
1,227,915 |
|||||||||||
| Sales & marketing expenses |
|
7,554 |
|
|
7,413 |
|
|
7,554 |
|
|
7,188 |
|
|
14,967 |
|
14,386 |
|
244,373 |
|
233,130 |
|
244,373 |
|
220,732 |
|
477,503 |
|
439,554 |
|||||||||||
| General & administrative expenses |
|
4,775 |
|
|
5,078 |
|
|
4,775 |
|
|
4,888 |
|
|
9,853 |
|
9,881 |
|
154,480 |
|
159,691 |
|
154,480 |
|
150,109 |
|
314,171 |
|
301,906 |
|||||||||||
| Expected credit loss |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
84 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
2,549 |
|||||||||||
| Total operating expenses |
|
35,487 |
|
|
35,336 |
|
|
35,487 |
|
|
32,369 |
|
|
70,823 |
|
64,536 |
|
1,148,026 |
|
1,111,295 |
|
1,148,026 |
|
994,039 |
|
2,259,321 |
|
1,971,924 |
|||||||||||
| Operating income |
|
15,791 |
|
|
16,621 |
|
|
15,791 |
|
|
13,429 |
|
|
32,412 |
|
25,305 |
|
510,835 |
|
522,749 |
|
510,835 |
|
412,414 |
|
1,033,584 |
|
773,444 |
|||||||||||
| Non-operating income |
|
2,866 |
|
|
2,527 |
|
|
2,866 |
|
|
2,055 |
|
|
5,393 |
|
3,323 |
|
92,723 |
|
79,477 |
|
92,723 |
|
63,081 |
|
172,200 |
|
101,641 |
|||||||||||
| Income before income taxes |
|
18,657 |
|
|
19,148 |
|
|
18,657 |
|
|
15,484 |
|
|
37,805 |
|
28,628 |
|
603,558 |
|
602,226 |
|
603,558 |
|
475,495 |
|
1,205,784 |
|
875,085 |
|||||||||||
| Income tax expense |
|
1,077 |
|
|
937 |
|
|
1,077 |
|
|
1,505 |
|
|
2,014 |
|
3,028 |
|
34,852 |
|
29,477 |
|
34,852 |
|
46,226 |
|
64,329 |
|
92,525 |
|||||||||||
| Net income |
|
17,580 |
|
|
18,211 |
|
|
17,580 |
|
|
13,979 |
|
|
35,791 |
|
25,600 |
|
568,706 |
|
572,749 |
|
568,706 |
|
429,269 |
|
1,141,455 |
|
782,560 |
|||||||||||
| EPS – Basic (In Dollar) |
$0.22 |
|
$0.23 |
|
$0.22 |
|
$0.18 |
|
$0.45 |
$0.33 |
$7.11 |
$7.21 |
$7.11 |
$5.44 |
$14.31 |
$9.94 |
|||||||||||||||||||||||
| Shares used in computing EPS-Basic (In thousands) |
|
79,939 |
|
|
79,483 |
|
|
79,939 |
|
|
78,947 |
|
|
79,790 |
|
78,692 |
|
79,939 |
|
79,483 |
|
79,939 |
|
78,947 |
|
79,790 |
|
78,692 |
|||||||||||
| EPS – Diluted (In Dollar) |
$0.22 |
|
$0.23 |
|
$0.22 |
|
$0.18 |
|
$0.45 |
$0.32 |
$7.09 |
$7.17 |
$7.09 |
$5.40 |
$14.24 |
$9.85 |
|||||||||||||||||||||||
| Shares used in computing EPS-Diluted (In thousands) |
|
80,232 |
|
|
79,850 |
|
|
80,232 |
|
|
79,545 |
|
|
80,162 |
|
79,413 |
|
80,232 |
|
79,850 |
|
80,232 |
|
79,545 |
|
80,162 |
|
79,413 |
|||||||||||
|
CONSOLIDATED BALANCE SHEETS |
USD in Thousands | NTD in Thousands | |||||||||||||||||||||||||||||||||||||
| Jun 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||||||||||||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||||||||||||
| Cash & cash equivalents |
|
319,028 |
|
|
225,120 |
|
|
10,352,451 |
|
|
7,010,227 |
|
|||||||||||||||||||||||||||
| Accounts receivable, net |
|
47,161 |
|
|
54,721 |
|
|
1,530,363 |
|
|
1,704,022 |
|
|||||||||||||||||||||||||||
| Inventories, net |
|
112,755 |
|
|
114,368 |
|
|
3,658,908 |
|
|
3,561,433 |
|
|||||||||||||||||||||||||||
| Other current assets |
|
28,775 |
|
|
32,666 |
|
|
933,755 |
|
|
1,017,219 |
|
|||||||||||||||||||||||||||
| Total current assets |
|
507,719 |
|
|
426,875 |
|
|
16,475,477 |
|
|
13,292,901 |
|
|||||||||||||||||||||||||||
| Non-current assets | |||||||||||||||||||||||||||||||||||||||
| Property, plant and equipment, net |
|
11,395 |
|
|
14,970 |
|
|
369,767 |
|
|
466,159 |
|
|||||||||||||||||||||||||||
| Right-of-use assets |
|
8,620 |
|
|
5,083 |
|
|
279,707 |
|
|
158,295 |
|
|||||||||||||||||||||||||||
| Intangible assets |
|
99,671 |
|
|
101,772 |
|
|
3,234,327 |
|
|
3,169,177 |
|
|||||||||||||||||||||||||||
| Deferred income tax assets |
|
12,738 |
|
|
11,143 |
|
|
413,344 |
|
|
346,988 |
|
|||||||||||||||||||||||||||
| Other non-current assets |
|
157,667 |
|
|
150,473 |
|
|
5,116,310 |
|
|
4,685,730 |
|
|||||||||||||||||||||||||||
| Total non-current assets |
|
290,091 |
|
|
283,441 |
|
|
9,413,455 |
|
|
8,826,349 |
|
|||||||||||||||||||||||||||
| Total Assets |
|
797,810 |
|
|
710,316 |
|
|
25,888,932 |
|
|
22,119,250 |
|
|||||||||||||||||||||||||||
| Current Liabilities | |||||||||||||||||||||||||||||||||||||||
| Accounts payable |
|
43,369 |
|
|
29,194 |
|
|
1,407,324 |
|
|
909,092 |
|
|||||||||||||||||||||||||||
| Other payables |
|
44,942 |
|
|
54,820 |
|
|
1,444,199 |
|
|
1,687,909 |
|
|||||||||||||||||||||||||||
| Current income tax liabilities |
|
10,777 |
|
|
9,528 |
|
|
349,705 |
|
|
296,692 |
|
|||||||||||||||||||||||||||
| Lease liabilities – current |
|
3,462 |
|
|
2,960 |
|
|
112,337 |
|
|
92,194 |
|
|||||||||||||||||||||||||||
| Other current liabilities |
|
7,533 |
|
|
6,490 |
|
|
244,444 |
|
|
202,110 |
|
|||||||||||||||||||||||||||
| Total current liabilities |
|
110,083 |
|
|
102,992 |
|
|
3,558,009 |
|
|
3,187,997 |
|
|||||||||||||||||||||||||||
| Non-current Liabilities | |||||||||||||||||||||||||||||||||||||||
| Lease liabilities – non-current |
|
5,158 |
|
|
2,123 |
|
|
167,370 |
|
|
66,101 |
|
|||||||||||||||||||||||||||
| Total non-current liabilities |
|
5,158 |
|
|
2,123 |
|
|
167,370 |
|
|
66,101 |
|
|||||||||||||||||||||||||||
| Equity | |||||||||||||||||||||||||||||||||||||||
| Ordinary shares |
|
26,730 |
|
|
26,735 |
|
|
811,618 |
|
|
811,747 |
|
|||||||||||||||||||||||||||
| Capital reserves |
|
135,817 |
|
|
134,946 |
|
|
4,172,562 |
|
|
4,212,672 |
|
|||||||||||||||||||||||||||
| Retained earnings |
|
542,866 |
|
|
498,502 |
|
|
16,118,452 |
|
|
14,740,781 |
|
|||||||||||||||||||||||||||
| Other equity |
|
(4,577 |
) |
|
(10,321 |
) |
|
1,646,438 |
|
|
493,401 |
|
|||||||||||||||||||||||||||
| Treasury shares |
|
(18,267 |
) |
|
(44,661 |
) |
|
(585,517 |
) |
|
(1,393,449 |
) |
|||||||||||||||||||||||||||
| Total equity |
|
682,569 |
|
|
605,201 |
|
|
22,163,553 |
|
|
18,865,152 |
|
|||||||||||||||||||||||||||
| Total liabilities and equity |
|
797,810 |
|
|
710,316 |
|
|
25,888,932 |
|
|
22,119,250 |
|
|||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
USD in Thousands | NTD in Thousands | |||||||||||||||||||||||||||||||||||||
| Jun 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||||||||||||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||||||||||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||||||||||||||||||||||
| Income before income tax for the period |
|
37,805 |
|
|
28,628 |
|
|
1,205,784 |
|
|
875,085 |
|
|||||||||||||||||||||||||||
| Depreciation and amortization (including the right-of-use assets) |
|
10,794 |
|
|
11,132 |
|
|
344,331 |
|
|
340,100 |
|
|||||||||||||||||||||||||||
| Expected credit loss |
|
– |
|
|
84 |
|
|
– |
|
|
2,549 |
|
|||||||||||||||||||||||||||
| Loss on disposal of equipment |
|
22 |
|
|
– |
|
|
694 |
|
|
– |
|
|||||||||||||||||||||||||||
| Loss on disposal of intangible assets |
|
356 |
|
|
125 |
|
|
11,368 |
|
|
3,814 |
|
|||||||||||||||||||||||||||
| Share-based compensation cost |
|
16,578 |
|
|
17,735 |
|
|
521,011 |
|
|
537,517 |
|
|||||||||||||||||||||||||||
| Interest income |
|
(5,345 |
) |
|
(2,925 |
) |
|
(170,692 |
) |
|
(89,352 |
) |
|||||||||||||||||||||||||||
| Income and expenses having no effect on cash flows |
|
22,405 |
|
|
26,151 |
|
|
706,712 |
|
|
794,628 |
|
|||||||||||||||||||||||||||
| Accounts receivable |
|
6,943 |
|
|
(20,098 |
) |
|
225,288 |
|
|
(625,845 |
) |
|||||||||||||||||||||||||||
| Inventories |
|
10,129 |
|
|
31,124 |
|
|
328,704 |
|
|
969,215 |
|
|||||||||||||||||||||||||||
| Other current assets |
|
(23,918 |
) |
|
(27,673 |
) |
|
(733,466 |
) |
|
(737,173 |
) |
|||||||||||||||||||||||||||
| Net changes in assets relating to operating activities |
|
(6,846 |
) |
|
(16,647 |
) |
|
(179,474 |
) |
|
(393,803 |
) |
|||||||||||||||||||||||||||
| Accounts payable |
|
(7,658 |
) |
|
16,191 |
|
|
(248,510 |
) |
|
504,193 |
|
|||||||||||||||||||||||||||
| Other payables |
|
(6,782 |
) |
|
(9,303 |
) |
|
(220,091 |
) |
|
(289,726 |
) |
|||||||||||||||||||||||||||
| Other current liabilities |
|
452 |
|
|
(6,983 |
) |
|
14,654 |
|
|
(217,466 |
) |
|||||||||||||||||||||||||||
| Net changes in liabilities relating to operating activities |
|
(13,988 |
) |
|
(95 |
) |
|
(453,947 |
) |
|
(2,999 |
) |
|||||||||||||||||||||||||||
| Cash inflow generated from operations |
|
39,376 |
|
|
38,037 |
|
|
1,279,075 |
|
|
1,272,911 |
|
|||||||||||||||||||||||||||
| Interest received |
|
5,345 |
|
|
2,925 |
|
|
170,692 |
|
|
89,352 |
|
|||||||||||||||||||||||||||
| Income taxes paid |
|
(2,438 |
) |
|
(6,247 |
) |
|
(77,764 |
) |
|
(190,854 |
) |
|||||||||||||||||||||||||||
| Net cash provided by operating activities |
|
42,283 |
|
|
34,715 |
|
|
1,372,003 |
|
|
1,171,409 |
|
|||||||||||||||||||||||||||
| Cash flows from investing activities | |||||||||||||||||||||||||||||||||||||||
| Acquisition of equipment |
|
(2,040 |
) |
|
(2,812 |
) |
|
(65,092 |
) |
|
(85,894 |
) |
|||||||||||||||||||||||||||
| Acquisition of intangible assets |
|
(90 |
) |
|
(170 |
) |
|
(2,862 |
) |
|
(5,181 |
) |
|||||||||||||||||||||||||||
| Decrease in refundable deposits |
|
1,887 |
|
|
6,821 |
|
|
61,222 |
|
|
212,389 |
|
|||||||||||||||||||||||||||
| Increase in other prepayments |
|
(10,939 |
) |
|
(6,505 |
) |
|
(348,949 |
) |
|
(198,738 |
) |
|||||||||||||||||||||||||||
| Net cash flows used in investing activities |
|
(11,182 |
) |
|
(2,666 |
) |
|
(355,681 |
) |
|
(77,424 |
) |
|||||||||||||||||||||||||||
| Cash flows from financing activities | |||||||||||||||||||||||||||||||||||||||
| Repayment of the principal portion of lease liabilities |
|
(1,983 |
) |
|
(1,786 |
) |
|
(63,262 |
) |
|
(54,554 |
) |
|||||||||||||||||||||||||||
| Treasury shares reissued to employees |
|
26,394 |
|
|
25,424 |
|
|
807,932 |
|
|
760,161 |
|
|||||||||||||||||||||||||||
| Distribution of cash dividends |
|
(12,800 |
) |
|
(60,062 |
) |
|
(390,871 |
) |
|
(1,724,498 |
) |
|||||||||||||||||||||||||||
| Cash dividend regain from canceled share-based compensation |
|
21 |
|
|
73 |
|
|
663 |
|
|
2,184 |
|
|||||||||||||||||||||||||||
| Net cash flows from (used in) financing activities |
|
11,632 |
|
|
(36,351 |
) |
|
354,462 |
|
|
(1,016,707 |
) |
|||||||||||||||||||||||||||
| Effect of exchange rate changes |
|
(84 |
) |
|
2,285 |
|
|
494,066 |
|
|
(42,435 |
) |
|
– |
|||||||||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents |
|
42,649 |
|
|
(2,017 |
) |
|
1,864,850 |
|
|
34,843 |
|
|||||||||||||||||||||||||||
| Cash and cash equivalents at beginning of period |
|
276,379 |
|
|
227,137 |
|
|
8,487,601 |
|
|
6,975,384 |
|
|||||||||||||||||||||||||||
| Cash and cash equivalents at end of period |
|
319,028 |
|
|
225,120 |
|
|
10,352,451 |
|
|
7,010,227 |
|
|||||||||||||||||||||||||||
Contacts
Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
[email protected]