Parade Technologies Reports Fourth Quarter and Fiscal 2019 Financial Results

Financial Highlights:

  • Q419 consolidated revenue US$96.18 million, compared with US$101.24 million in the year-ago quarter
  • Q419 consolidated net income US$20.72 million; Basic and Fully diluted after-tax EPS US$0.27 (NT$8.18) and US$0.26 (NT$7.98), 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 fourth fiscal quarter and fiscal year 2019 ended December 31, 2019, and provided guidance for the first quarter of fiscal year 2020.

Consolidated revenue was US$96.18 million and consolidated net income was US$20.72 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.27 (NT$8.18) and US$0.26 (NT$7.98), respectively. These results compared to consolidated revenue US$101.24 million and consolidated net income of US$22.44 million, or US$0.29 (NT$9.01) and US$0.28 (NT$8.66) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the fourth quarter of 2019 consolidated revenue decreased 5.19% sequentially and was down 5.00% year-over-year.

The gross profit in the fourth quarter of 2019 was US$42.26 million, representing a decrease of 3.00% from the previous quarter and a decrease of 0.39% compared to the same quarter of last year.

The Company also reported financial results for fiscal year 2019. Consolidated revenue was US$382.05 million, representing an increase of 11.34% from US$343.15 million in the prior year. Gross profit was US$163.17 million and operating income was US$77.57 million. Net income for fiscal year 2019 was US$78.74 million, or US$1.02 (NT$31.54) per basic share and US$0.99 (NT$30.69) per fully diluted share. These results compared with net income of US$65.06 million, or US$0.85 (NT$25.67) per basic share and US$0.81 (NT$24.66) per fully diluted share in the prior year.

Based on current business outlook, Parade is providing the following guidance for the first quarter of fiscal 2020:

  • Revenue: US$95 ~105 Million
  • Gross Margin: 41.5% ~44.5%
  • Operating Expense: US$21.75 ~22.75 Million

The financial figures detailed above for the fourth quarter of 2019 and for the year ended December 31, 2019 have not been audited or 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 Twelve Months ended Sequential Quarter Three Months ended Twelve Months ended

Dec 31,

Sep 30,

Dec 31,

Dec 31,

Dec 31,

Dec 31,

Dec 31,

Sep 30,

Dec 31,

Dec 31,

Dec 31,

Dec 31,

2019

2019

2019

2018

2019

2018

2019

2019

2019

2018

2019

2018

 
Revenue

96,180

101,447

96,180

101,242

382,050

343,145

 

2,931,558

3,165,157

2,931,558

3,123,334

11,810,592

10,363,888

 

Cost of goods sold

53,919

57,883

53,919

58,816

218,882

200,850

 

1,643,425

1,805,971

1,643,425

1,814,490

6,766,981

6,065,144

 

Gross profit

42,261

43,564

42,261

42,426

163,168

142,295

 

1,288,133

1,359,186

1,288,133

1,308,844

5,043,611

4,298,744

 

Research & development expenses

13,962

13,523

13,962

12,693

53,625

50,673

 

425,578

421,915

425,578

391,583

1,657,519

1,528,150

 

Sales & marketing expenses

4,821

4,778

4,821

4,173

18,597

15,968

 

146,912

149,079

146,912

128,748

574,796

481,584

 

General & administrative expenses

3,704

3,433

3,704

2,989

13,360

11,180

 

112,903

107,113

112,903

92,202

412,845

337,207

 

Expected credit loss

12

12

 

367

367

 

Total operating expenses

22,487

21,746

22,487

19,855

85,594

77,821

 

685,393

678,474

685,393

612,533

2,645,527

2,346,941

 

Operating income

19,774

21,818

19,774

22,571

77,574

64,474

 

602,740

680,712

602,740

696,311

2,398,084

1,951,803

 

Non-operating income and expenses

1,007

1,197

1,007

236

3,812

506

 

30,678

37,370

30,678

7,277

117,950

15,561

 

Income before income taxes

20,781

23,015

20,781

22,807

81,386

64,980

 

633,418

718,082

633,418

703,588

2,516,034

1,967,364

 

Income tax expense (benefit)

66

1,150

66

365

2,649

(78

)

2,001

35,891

2,001

11,248

82,275

(1,998

)

Net income

20,715

21,865

20,715

22,442

78,737

65,058

 

631,417

682,191

631,417

692,340

2,433,759

1,969,362

 

EPS – Basic (In Dollar)

$0.27

$0.28

$0.27

$0.29

$1.02

$0.85

 

$8.18

$8.86

$8.18

$9.01

$31.54

$25.67

 

Shares used in computing EPS-Basic (In thousands)

77,194

76,980

77,194

76,822

77,171

76,722

 

77,194

76,980

77,194

76,822

77,171

76,722

 

EPS – Diluted (In Dollar)

$0.26

$0.28

$0.26

$0.28

$0.99

$0.81

 

$7.98

$8.67

$7.98

$8.66

$30.69

$24.66

 

Shares used in computing EPS-Diluted (In thousands)

79,132

78,648

79,132

79,965

79,309

79,859

 

79,132

78,648

79,132

79,965

79,309

79,859

 

 
UNAUDITED CONSOLIDATED BALANCE SHEETS USD in Thousands NTD in Thousands
As of December 31, 2019 and 2018 Dec 31, Dec 31, Dec 31, Dec 31,

2019

 

2018

 

2019

 

2018

 

Current assets
Cash & cash equivalents

270,380

 

195,701

 

8,106,000

 

6,011,928

 

Accounts receivable, net

39,944

 

45,944

 

1,197,533

 

1,411,407

 

Inventories, net

31,481

 

35,800

 

943,784

 

1,099,789

 

Prepayments

8,344

 

6,736

 

250,140

 

206,920

 

Other current assets

10,048

 

10,850

 

301,249

 

333,327

 

Total current assets

360,197

 

295,031

 

10,798,706

 

9,063,371

 

Non-current assets
Property, plant and equipment, net

9,267

 

10,614

 

277,838

 

326,052

 

Right-of-use assets

6,055

 

 

181,543

 

 

Intangible assets

79,207

 

83,346

 

2,374,609

 

2,560,397

 

Deferred income tax assets

3,801

 

1,946

 

113,956

 

59,772

 

Other non-current assets

866

 

809

 

25,956

 

24,853

 

Total non-current assets

99,196

 

96,715

 

2,973,902

 

2,971,074

 

Total Assets

459,393

 

391,746

 

13,772,608

 

12,034,445

 

 
Current Liabilities
Accounts payable

26,224

 

31,626

 

786,191

 

971,566

 

Other payables

24,640

 

20,348

 

738,687

 

625,103

 

Current income tax liabilities

20,556

 

16,002

 

616,281

 

491,583

 

Lease liabilities – current

2,199

 

 

65,937

 

 

Other current liabilities

6,341

 

7,315

 

190,109

 

224,699

 

Total current liabilities

79,960

 

75,291

 

2,397,205

 

2,312,951

 

Non current Liabilities
Lease liabilities – non-current

3,856

 

 

115,606

 

 

Total non current liabilities

3,856

 

 

115,606

 

 

Equity
Ordinary shares

26,313

 

26,021

 

799,205

 

790,147

 

Capital reserves

103,824

 

92,873

 

3,159,096

 

2,817,047

 

Retained earnings

271,675

 

224,586

 

8,333,982

 

6,879,370

 

Other equity

(22,939

)

(20,433

)

(930,761

)

(561,620

)

Treasury shares

(3,296

)

(6,592

)

(101,725

)

(203,450

)

Total equity

375,577

 

316,455

 

11,259,797

 

9,721,494

 

Total liabilities and equity

459,393

 

391,746

 

13,772,608

 

12,034,445

 

 
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS USD in Thousands NTD in Thousands
For twelve months ended December 31, 2019 and 2018 Dec 31, Dec 31, Dec 31, Dec 31,

2019

 

2018

 

2019

 

2018

 

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

81,386

 

64,980

 

2,516,034

 

1,967,364

 

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

15,779

 

11,527

 

487,704

 

347,530

 

Loss on disposal of equipment

4

 

 

128

 

 

Share-based compensation cost

9,769

 

8,199

 

301,582

 

246,603

 

Interest income

(3,419

)

(270

)

(105,793

)

(8,277

)

Income and expenses having no effect on cash flows

22,133

 

19,456

 

683,621

 

585,856

 

Accounts receivable

6,000

 

6,328

 

179,875

 

194,400

 

Inventories

4,320

 

(1,526

)

129,513

 

(46,871

)

Prepayments

(1,608

)

(2,802

)

(48,205

)

(86,098

)

Other current assets

801

 

(3,248

)

24,018

 

(99,780

)

Net changes in assets relating to operating activities

9,513

 

(1,248

)

285,201

 

(38,349

)

Accounts payable

(5,403

)

5,839

 

(161,971

)

179,368

 

Other payables

4,291

 

(285

)

128,642

 

(8,755

)

Other current liabilities

(973

)

(966

)

(29,177

)

(29,672

)

Net changes in liabilities relating to operating activities

(2,085

)

4,588

 

(62,506

)

140,941

 

Cash provided by operations

110,947

 

87,776

 

3,422,350

 

2,655,812

 

Interest received

3,419

 

277

 

105,674

 

8,356

 

Income taxes paid

(1,160

)

(6,057

)

(35,845

)

(182,618

)

Net cash provided by operating activities

113,206

 

81,996

 

3,492,179

 

2,481,550

 

Cash flows from investing activities
Acquisition of equipment

(2,490

)

(5,221

)

(76,972

)

(157,413

)

Acquisition of intangible assets

(5,633

)

(2,886

)

(174,119

)

(87,010

)

(Increase) decrease in refundable deposits

(57

)

9

 

(1,702

)

276

 

Net cash used in investing activities

(8,180

)

(8,098

)

(252,793

)

(244,147

)

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

501

 

489

 

15,479

 

14,729

 

Purchase of treasury shares

 

(9,352

)

 

(284,138

)

Treasury shares reissued to employees

3,296

 

2,760

 

101,725

 

80,688

 

Repayment of the principal portion of lease liabilities

(2,196

)

 

(67,877

)

 

Distribution of cash dividends

(32,529

)

(33,182

)

(980,751

)

(965,599

)

Cash dividend regain from canceled share-based compensation

54

 

34

 

1,604

 

1,060

 

Net cash used in financing activities

(30,874

)

(39,251

)

(929,820

)

(1,153,260

)

Effect of exchange rate changes on cash and cash equivalents

527

 

999

 

(215,494

)

164,558

 

Increase in cash and cash equivalents

74,679

 

35,646

 

2,094,072

 

1,248,701

 

Cash and cash equivalents at beginning of year

195,701

 

160,055

 

6,011,928

 

4,763,227

 

Cash and cash equivalents at end of year

270,380

 

195,701

 

8,106,000

 

6,011,928

 

 

Contacts

Parade Technologies

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

ir@paradetech.com

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