Parade Technologies Reports Fourth Quarter and Fiscal 2022 Financial Results

Financial Highlights:

  • Q422 consolidated revenue US$101.45 million, compared with US$194.26 million in the year-ago quarter
  • Q422 consolidated net income US$14.48 million; Basic and Fully diluted after-tax EPS US$0.18 (NT$5.67) and US$0.18 (NT$5.60), respectively

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 2022 ended December 31, 2022, and provided guidance for the first quarter of fiscal year 2023.

Consolidated revenue was US$101.45 million and consolidated net income was US$14.48 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.18 (NT$5.67) and US$0.18 (NT$5.60), respectively. These results compared to consolidated revenue US$194.26 million and consolidated net income of US$52.60 million, or US$0.66 (NT$18.42) and US$0.65 (NT$18.08) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the fourth quarter of 2022 consolidated revenue decreased 32.83% sequentially and was down 47.77% year-over-year.

The gross profit in the fourth quarter of 2022 was US$44.68 million, representing a decrease of 34.66% from the previous quarter and a decrease of 52.46% compared to the same quarter of last year.

The Company also reported financial results for fiscal year 2022. Consolidated revenue was US$679.92 million, representing a decrease of 4.82% from US$714.33 million in the prior year. Gross profit was US$316.18 million and operating income was US$180.00 million. Net income for fiscal year 2022 was US$167.25 million, or US$2.09 (NT$61.35) per basic share and US$2.06 (NT$60.35) per fully diluted share. These results compared with net income of US$187.44 million, or US$2.37 (NT$66.29) per basic share and US$2.32 (NT$64.79) 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 2023:

  • Revenue: US$90.0 ~105.0 Million
  • Gross Margin: 43% ~47%
  • Operating Expense: US$29.0 ~32.0 Million

On January 18, 2023, Parade introduced the new PS8936 retimer chip developed for PCI Express Rev. 5.0 and Compute Express Link (CXL), supporting sixteen bidirectional lanes. In addition to supporting the 32 Gbps data rate offered by the PCI Express 5.0 specification, it also supports 2.5 Gbps, 5 Gbps, 8 Gbps and 16 Gbps for backward compatibility with earlier PCI Express revisions. The PS8936 is the PCI Express Gen 5 retimer addition to Parade’s PS8926 and PS8925 PCI Express 4.0 16-lane and 4-lane retimer family currently in production and PS8570 PCI Express 4.0 4-channel linear redriver in sampling stage. The PS8936 is in full compliance with the PCI Express 5.0 specification and has been successfully tested in multiple OEM systems and PCI Express 5.0 CPU platforms. It is designed for use in enterprise systems including servers and data storage, and in high-performance workstations.

On January 25, 2023, Parade announced a new offering in its eDP Timing Controller (Tcon) with embedded driver (TED) product category. TC3222 provides a single-chip display driver solution as an alternative to the traditional multichip solutions (eDP Tcon + source drivers). The TC3222 provides a lower cost alternative to the TC3210 by eliminating the frame buffer required to support PSR (Panel Self Refresh). Both versions feature narrow COG package dimensions to support new generations of sleek LCD panel assemblies. TC3222 is compliant with the eDP 1.4b standard and supports Multi-SST Operation (MSO), Dynamic Refresh Rates, and more. The TC3222 is designed for Flip Chip on Glass application on both a-Si (Amorphous Silicon) and Oxide type TFT panels. It requires no external crystal or timing reference, includes a programmable gamma buffer, as well as Parade’s exclusive Smart-Backlight™ feature for additional color and power optimization. The fully programmable row and column driver timing enables the TC3222 to serve a broad range of panel types, and it provides synchronization signals that support a wide range of touch controllers.

The financial figures detailed above for the fourth quarter of 2022 and for the year ended December 31, 2022 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 INCOME STATEMENTS

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,

2022

 

2022

 

2022

 

2021

 

2022

 

2021

 

2022

 

2022

 

2022

 

2021

 

2022

 

2021

 
Revenue

 

101,450

 

151,044

 

101,450

 

194,255

 

 

679,916

 

714,334

 

 

3,181,446

 

4,591,744

 

3,181,446

 

5,406,120

 

 

20,055,284

 

19,994,646

 

Cost of goods sold

 

56,774

 

82,671

 

56,774

 

100,279

 

 

363,733

 

373,739

 

 

1,780,425

 

2,513,211

 

1,780,425

 

2,790,774

 

 

10,739,544

 

10,463,279

 

Gross profit

 

44,676

 

68,373

 

44,676

 

93,976

 

 

316,183

 

340,595

 

 

1,401,021

 

2,078,533

 

1,401,021

 

2,615,346

 

 

9,315,740

 

9,531,367

 

Research & development expenses

 

20,074

 

21,090

 

20,074

 

20,420

 

 

83,873

 

76,886

 

 

629,511

 

641,148

 

629,511

 

568,288

 

 

2,497,656

 

2,152,636

 

Sales & marketing expenses

 

6,469

 

7,285

 

6,469

 

8,005

 

 

29,875

 

31,703

 

 

202,857

 

221,477

 

202,857

 

222,773

 

 

887,170

 

887,522

 

General & administrative expenses

 

4,114

 

5,327

 

4,114

 

6,429

 

 

22,439

 

23,635

 

 

129,023

 

161,917

 

129,023

 

178,932

 

 

664,390

 

661,551

 

Total operating expenses

 

30,657

 

33,702

 

30,657

 

34,854

 

 

136,187

 

132,224

 

 

961,391

 

1,024,542

 

961,391

 

969,993

 

 

4,049,216

 

3,701,709

 

Operating income

 

14,019

 

34,671

 

14,019

 

59,122

 

 

179,996

 

208,371

 

 

439,630

 

1,053,991

 

439,630

 

1,645,353

 

 

5,266,524

 

5,829,658

 

Non-operating income and (expenses)

 

1,800

 

1,185

 

1,800

 

(170

)

 

3,521

 

(750

)

 

56,441

 

36,031

 

56,441

 

(4,721

)

 

108,309

 

(21,125

)

Income before income taxes

 

15,819

 

35,856

 

15,819

 

58,952

 

 

183,517

 

207,621

 

 

496,071

 

1,090,022

 

496,071

 

1,640,632

 

 

5,374,833

 

5,808,533

 

Income tax expense

 

1,335

 

3,216

 

1,335

 

6,352

 

 

16,269

 

20,180

 

 

41,861

 

97,771

 

41,861

 

176,784

 

 

476,514

 

564,026

 

Net income

 

14,484

 

32,640

 

14,484

 

52,600

 

 

167,248

 

187,441

 

 

454,210

 

992,251

 

454,210

 

1,463,848

 

 

4,898,319

 

5,244,507

 

EPS - Basic (In Dollar)

$

0.18

$

0.41

$

0.18

$

0.66

 

$

2.09

$

2.37

 

$

5.67

$

12.38

$

5.67

$

18.42

 

$

61.35

$

66.29

 

Shares used in computing EPS-Basic (In thousands)

 

80,160

 

80,182

 

80,160

 

79,491

 

 

79,845

 

79,114

 

 

80,160

 

80,182

 

80,160

 

79,491

 

 

79,845

 

79,114

 

EPS - Diluted (In Dollar)

$

0.18

$

0.40

$

0.18

$

0.65

 

$

2.06

$

2.32

 

$

5.60

$

12.21

$

5.60

$

18.08

 

$

60.35

$

64.79

 

Shares used in computing EPS-Diluted (In thousands)

 

81,067

 

81,272

 

81,067

 

80,973

 

 

81,160

 

80,952

 

 

81,067

 

81,272

 

81,067

 

80,973

 

 

81,160

 

80,952

 

UNAUDITED CONSOLIDATED BALANCE SHEETS

As of DECEMBER 31, 2022 and 2021

USD in Thousands

 

NTD in Thousands

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

2022

 

2021

 

2022

 

2021

Current assets
Cash & cash equivalents

227,137

 

332,433

 

6,975,384

 

9,201,743

 

Accounts receivable, net

34,707

 

50,383

 

1,065,863

 

1,394,595

 

Inventories, net

145,493

 

75,779

 

4,468,087

 

2,097,554

 

Other current assets

20,236

 

12,407

 

621,454

 

343,437

 

Total current assets

427,573

 

471,002

 

13,130,788

 

13,037,329

 

Non-current assets
Property, plant and equipment, net

16,136

 

17,625

 

495,523

 

487,868

 

Right-of-use assets

5,302

 

8,474

 

162,812

 

234,571

 

Intangible assets

103,038

 

109,979

 

3,164,291

 

3,044,207

 

Deferred income tax assets

11,621

 

8,817

 

356,894

 

244,042

 

Other non-current assets

155,044

 

75,636

 

4,761,390

 

2,093,609

 

Total non-current assets

291,141

 

220,531

 

8,940,910

 

6,104,297

 

Total Assets

718,714

 

691,533

 

22,071,698

 

19,141,626

 

 
Current Liabilities
Accounts payable

13,003

 

40,846

 

399,308

 

1,130,616

 

Other payables

100,624

 

90,291

 

2,970,174

 

2,519,249

 

Current income tax liabilities

12,846

 

18,678

 

394,513

 

517,012

 

Lease liabilities - current

2,656

 

3,574

 

81,569

 

98,946

 

Other current liabilities

13,474

 

10,044

 

413,782

 

278,008

 

Total current liabilities

142,603

 

163,433

 

4,259,346

 

4,543,831

 

Non-current Liabilities
Lease liabilities - non-current

2,646

 

4,900

 

81,243

 

135,625

 

Total non-current liabilities

2,646

 

4,900

 

81,243

 

135,625

 

Equity
Ordinary shares

26,740

 

26,634

 

811,913

 

808,638

 

Capital reserves

138,110

 

143,754

 

4,192,921

 

4,319,491

 

Retained earnings

492,999

 

433,068

 

14,671,389

 

12,970,276

 

Other equity

(14,299

)

(23,915

)

208,496

 

(2,070,966

)

Treasury shares

(70,085

)

(56,341

)

(2,153,610

)

(1,565,269

)

Total equity

573,465

 

523,200

 

17,731,109

 

14,462,170

 

Total liabilities and equity

718,714

 

691,533

 

22,071,698

 

19,141,626

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2022 and 2021

USD in Thousands

 

NTD in Thousands

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

2022

 

2021

 

2022

 

2021

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

183,517

 

207,621

 

5,374,833

 

5,808,533

 

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

21,960

 

25,509

 

654,416

 

714,503

 

Loss on disposal of intangible assets

665

 

-

 

19,817

 

-

 

Loss on disposal of equipment

1

 

86

 

35

 

2,417

 

Share-based compensation cost

32,529

 

31,676

 

969,165

 

913,618

 

Interest income

(2,069

)

(96

)

(63,912

)

(2,685

)

Income and expenses having no effect on cash flows

53,086

 

57,175

 

1,579,521

 

1,627,853

 

Accounts receivable

15,675

 

5,050

 

481,391

 

139,785

 

Inventories

(69,714

)

(19,072

)

(2,140,923

)

(527,908

)

Other current assets

(37,354

)

(7,774

)

(1,078,797

)

(223,290

)

Net changes in assets relating to operating activities

(91,393

)

(21,796

)

(2,738,329

)

(611,413

)

Accounts payable

(27,843

)

(2,724

)

(855,072

)

(75,409

)

Other payables

(8,977

)

15,396

 

(275,698

)

426,155

 

Other current liabilities

3,430

 

4,420

 

105,341

 

122,349

 

Net changes in liabilities relating to operating activities

(33,390

)

17,092

 

(1,025,429

)

473,095

 

Cash provided by operations

111,820

 

260,092

 

3,190,596

 

7,298,068

 

Interest received

2,069

 

96

 

63,912

 

2,685

 

Income taxes paid

(24,117

)

(17,010

)

(718,678

)

(476,455

)

Income taxes received

242

 

2

 

7,219

 

52

 

Net cash generated from operating activities

90,014

 

243,180

 

2,543,049

 

6,824,350

 

Cash flows from investing activities
Acquisition of equipment

(5,757

)

(10,584

)

(171,548

)

(296,457

)

Acquisition of intangible assets

(466

)

(395

)

(13,901

)

(11,065

)

Increase in refundable deposits

(72,127

)

(66,269

)

(2,215,017

)

(1,834,320

)

Increase in other prepayments

(11,997

)

(7,968

)

(357,512

)

(223,186

)

Net cash used in investing activities

(90,347

)

(85,216

)

(2,757,978

)

(2,365,028

)

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

2,448

 

271

 

72,937

 

7,583

 

Repayment of the principal portion of lease liabilities

(3,663

)

(3,899

)

(109,154

)

(109,202

)

Purchase of treasury shares

(48,277

)

(61,424

)

(1,547,481

)

(1,707,978

)

Proceeds from exercise of disgorgement

-

 

-

 

11

 

-

 

Treasury shares reissued to employees

34,533

 

11,052

 

959,141

 

310,416

 

Distribution of cash dividends

(93,720

)

(59,474

)

(2,622,127

)

(1,752,708

)

Cash dividend regain from canceled share-based compensation

76

 

62

 

2,245

 

1,881

 

Net cash used in financing activities

(108,603

)

(113,412

)

(3,244,428

)

(3,250,008

)

Effect of exchange rate changes

3,640

 

(11,265

)

1,232,998

 

(527,250

)

Net (decrease) increase in cash and cash equivalents

(105,296

)

33,287

 

(2,226,359

)

682,064

 

Cash and cash equivalents at beginning of year

332,433

 

299,146

 

9,201,743

 

8,519,679

 

Cash and cash equivalents at end of year

227,137

 

332,433

 

6,975,384

 

9,201,743

 

 

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