Parade Technologies Reports Fourth Quarter and Fiscal 2020 Financial Results
Financial Highlights:
- Q420 consolidated revenue US$148.29 million, compared with US$96.18 million in the year-ago quarter
- Q420 consolidated net income US$33.29 million; Basic and Fully diluted after-tax EPS US$0.42 (NT$12.12) and US$0.41 (NT$11.88), 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 2020 ended December 31, 2020, and provided guidance for the first quarter of fiscal year 2021.
Consolidated revenue was US$148.29 million and consolidated net income was US$33.29 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.42 (NT$12.12) and US$0.41 (NT$11.88), respectively. These results compared to consolidated revenue US$96.18 million and consolidated net income of US$20.72 million, or US$0.27 (NT$8.18) and US$0.26 (NT$7.98) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the fourth quarter of 2020 consolidated revenue decreased 1.24% sequentially and was up 54.18% year-over-year.
The gross profit in the fourth quarter of 2020 was US$64.56 million, representing a decrease of 2.29% from the previous quarter and an increase of 52.76% compared to the same quarter of last year.
The Company also reported financial results for fiscal year 2020. Consolidated revenue was US$518.34 million, representing an increase of 35.67% from US$382.05 million in the prior year. Gross profit was US$228.34 million and operating income was US$125.03 million. Net income for fiscal year 2020 was US$118.95 million, or US$1.52 (NT$44.86) per basic share and US$1.48 (NT$43.73) per fully diluted share. These results compared with net income of 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 in the prior year.
Based on current business outlook, Parade is providing the following guidance for the first quarter of fiscal 2021:
- Revenue: US$139 ~153 Million
- Gross Margin: 41.5% ~44.5%
- Operating Expense: US$28 ~29 Million
The financial figures detailed above for the fourth quarter of 2020 and for the year ended December 31, 2020 have not been audited or reviewed by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (“TPEx”) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
| Parade Technologies, Ltd. and Subsidiaries. | ||||||||||||||||||||||||||||||
|
The reader is advised that these consolidated financial statements have been prepared originally in NT$ 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, | |||||||||||||||||||
|
2020 |
2020 |
2020 |
2019 |
2020 |
2019 |
2020 |
2020 |
2020 |
2019 |
2020 |
2019 |
|||||||||||||||||||
| Revenue |
148,287 |
|
150,146 |
|
148,287 |
|
96,180 |
518,336 |
382,050 |
4,263,263 |
|
4,421,777 |
|
4,263,263 |
|
2,931,558 |
15,279,588 |
11,810,592 |
||||||||||||
| Cost of goods sold |
83,727 |
|
84,072 |
|
83,727 |
|
53,919 |
289,999 |
218,882 |
2,407,154 |
|
2,475,915 |
|
2,407,154 |
|
1,643,425 |
8,547,608 |
6,766,981 |
||||||||||||
| Gross profit |
64,560 |
|
66,074 |
|
64,560 |
|
42,261 |
228,337 |
163,168 |
1,856,109 |
|
1,945,862 |
|
1,856,109 |
|
1,288,133 |
6,731,980 |
5,043,611 |
||||||||||||
| Research & development expenses |
17,094 |
|
16,443 |
|
17,094 |
|
13,962 |
62,633 |
53,625 |
491,457 |
|
484,243 |
|
491,457 |
|
425,578 |
1,848,443 |
1,657,519 |
||||||||||||
| Sales & marketing expenses |
6,671 |
|
6,413 |
|
6,671 |
|
4,821 |
23,187 |
18,597 |
191,796 |
|
188,851 |
|
191,796 |
|
146,912 |
683,701 |
574,796 |
||||||||||||
| General & administrative expenses |
4,686 |
|
4,640 |
|
4,686 |
|
3,704 |
17,483 |
13,360 |
134,724 |
|
136,635 |
|
134,724 |
|
112,903 |
515,969 |
412,845 |
||||||||||||
| Expected credit loss |
– |
|
– |
|
– |
|
– |
– |
12 |
– |
|
– |
|
– |
|
– |
– |
367 |
||||||||||||
| Total operating expenses |
28,451 |
|
27,496 |
|
28,451 |
|
22,487 |
103,303 |
85,594 |
817,977 |
|
809,729 |
|
817,977 |
|
685,393 |
3,048,113 |
2,645,527 |
||||||||||||
| Operating income |
36,109 |
|
38,578 |
|
36,109 |
|
19,774 |
125,034 |
77,574 |
1,038,132 |
|
1,136,133 |
|
1,038,132 |
|
602,740 |
3,683,867 |
2,398,084 |
||||||||||||
| Non-operating income and expenses |
(388 |
) |
(87 |
) |
(388 |
) |
1,007 |
485 |
3,812 |
(11,147 |
) |
(2,557 |
) |
(11,147 |
) |
30,678 |
15,160 |
117,950 |
||||||||||||
| Income before income taxes |
35,721 |
|
38,491 |
|
35,721 |
|
20,781 |
125,519 |
81,386 |
1,026,985 |
|
1,133,576 |
|
1,026,985 |
|
633,418 |
3,699,027 |
2,516,034 |
||||||||||||
| Income tax expense |
2,429 |
|
1,745 |
|
2,429 |
|
66 |
6,571 |
2,649 |
69,815 |
|
51,404 |
|
69,815 |
|
2,001 |
193,231 |
82,275 |
||||||||||||
| Net income |
33,292 |
|
36,746 |
|
33,292 |
|
20,715 |
118,948 |
78,737 |
957,170 |
|
1,082,172 |
|
957,170 |
|
631,417 |
3,505,796 |
2,433,759 |
||||||||||||
| EPS – Basic (In Dollar) |
$0.42 |
|
$0.47 |
|
$0.42 |
|
$0.27 |
$1.52 |
$1.02 |
$12.12 |
|
$13.80 |
|
$12.12 |
|
$8.18 |
$44.86 |
$31.54 |
||||||||||||
| Shares used in computing EPS-Basic (In thousands) |
78,955 |
|
78,437 |
|
78,955 |
|
77,194 |
78,156 |
77,171 |
78,955 |
|
78,437 |
|
78,955 |
|
77,194 |
78,156 |
77,171 |
||||||||||||
| EPS – Diluted (In Dollar) |
$0.41 |
|
$0.46 |
|
$0.41 |
|
$0.26 |
$1.48 |
$0.99 |
$11.88 |
|
$13.52 |
|
$11.88 |
|
$7.98 |
$43.73 |
$30.69 |
||||||||||||
| Shares used in computing EPS-Diluted (In thousands) |
80,562 |
|
80,018 |
|
80,562 |
|
79,132 |
80,161 |
79,309 |
80,562 |
|
80,018 |
|
80,562 |
|
79,132 |
80,161 |
79,309 |
||||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | USD in Thousands | NTD in Thousands | ||||||||||
| As of December 31, 2020 and 2019 | Dec 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|||||
| Current assets | ||||||||||||
| Cash & cash equivalents |
299,146 |
|
270,380 |
|
8,519,679 |
|
8,106,000 |
|
||||
| Accounts receivable, net |
55,433 |
|
39,944 |
|
1,578,725 |
|
1,197,533 |
|
||||
| Inventories, net |
56,707 |
|
31,481 |
|
1,615,012 |
|
943,784 |
|
||||
| Prepayments |
11,197 |
|
8,344 |
|
318,886 |
|
250,140 |
|
||||
| Other current assets |
16,998 |
|
10,048 |
|
484,108 |
|
301,249 |
|
||||
| Total current assets |
439,481 |
|
360,197 |
|
12,516,410 |
|
10,798,706 |
|
||||
| Non-current assets | ||||||||||||
| Property, plant and equipment, net |
12,874 |
|
9,267 |
|
366,648 |
|
277,838 |
|
||||
| Right-of-use assets |
8,771 |
|
6,055 |
|
249,796 |
|
181,543 |
|
||||
| Intangible assets |
112,754 |
|
79,207 |
|
3,211,223 |
|
2,374,609 |
|
||||
| Deferred income tax assets |
6,694 |
|
3,801 |
|
190,661 |
|
113,956 |
|
||||
| Other non-current assets |
1,188 |
|
866 |
|
33,839 |
|
25,956 |
|
||||
| Total non-current assets |
142,281 |
|
99,196 |
|
4,052,167 |
|
2,973,902 |
|
||||
| Total Assets |
581,762 |
|
459,393 |
|
16,568,577 |
|
13,772,608 |
|
||||
| Current Liabilities | ||||||||||||
| Accounts payable |
43,570 |
|
26,224 |
|
1,240,882 |
|
786,191 |
|
||||
| Other payables |
58,599 |
|
24,640 |
|
1,706,070 |
|
738,687 |
|
||||
| Current income tax liabilities |
18,538 |
|
20,556 |
|
527,976 |
|
616,281 |
|
||||
| Lease liabilities – current |
2,662 |
|
2,199 |
|
75,801 |
|
65,937 |
|
||||
| Other current liabilities |
5,624 |
|
6,341 |
|
160,159 |
|
190,109 |
|
||||
| Total current liabilities |
128,993 |
|
79,960 |
|
3,710,888 |
|
2,397,205 |
|
||||
| Non current Liabilities | ||||||||||||
| Lease liabilities – non-current |
6,109 |
|
3,856 |
|
173,995 |
|
115,606 |
|
||||
| Total non-current liabilities |
6,109 |
|
3,856 |
|
173,995 |
|
115,606 |
|
||||
| Equity | ||||||||||||
| Ordinary shares |
26,604 |
|
26,313 |
|
807,803 |
|
799,205 |
|
||||
| Capital reserves |
137,586 |
|
103,824 |
|
4,152,210 |
|
3,159,096 |
|
||||
| Retained earnings |
324,547 |
|
271,675 |
|
9,890,935 |
|
8,333,982 |
|
||||
| Other equity |
(36,108 |
) |
(22,939 |
) |
(1,999,547 |
) |
(930,761 |
) |
||||
| Treasury shares |
(5,969 |
) |
(3,296 |
) |
(167,707 |
) |
(101,725 |
) |
||||
| Total equity |
446,660 |
|
375,577 |
|
12,683,694 |
|
11,259,797 |
|
||||
| Total liabilities and equity |
581,762 |
|
459,393 |
|
16,568,577 |
|
13,772,608 |
|
||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | USD in Thousands | NTD in Thousands | ||||||||||
| For twelve months ended December 31, 2020 and 2019 | Dec 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|||||
| Cash flows from operating activities | ||||||||||||
| Income before income tax for the year |
125,519 |
|
81,386 |
|
3,699,027 |
|
2,516,034 |
|
||||
| Depreciation and amortization (including the right-of-use assets) |
16,244 |
|
15,779 |
|
480,020 |
|
487,704 |
|
||||
| Loss on disposal of equipment |
– |
|
4 |
|
– |
|
128 |
|
||||
| Share-based compensation cost |
18,783 |
|
9,769 |
|
566,708 |
|
301,582 |
|
||||
| Interest income |
(963 |
) |
(3,419 |
) |
(28,885 |
) |
(105,793 |
) |
||||
| Income and expenses having no effect on cash flows |
34,064 |
|
22,133 |
|
1,017,843 |
|
683,621 |
|
||||
| Accounts receivable |
(15,488 |
) |
6,000 |
|
(441,109 |
) |
179,875 |
|
||||
| Inventories |
(25,226 |
) |
4,320 |
|
(718,449 |
) |
129,513 |
|
||||
| Prepayments |
(2,853 |
) |
(1,608 |
) |
(81,261 |
) |
(48,205 |
) |
||||
| Other current assets |
(6,271 |
) |
801 |
|
(178,585 |
) |
24,018 |
|
||||
| Net changes in assets relating to operating activities |
(49,838 |
) |
9,513 |
|
(1,419,404 |
) |
285,201 |
|
||||
| Accounts payable |
17,347 |
|
(5,403 |
) |
494,026 |
|
(161,971 |
) |
||||
| Other payables |
9,505 |
|
4,291 |
|
270,701 |
|
128,642 |
|
||||
| Other current liabilities |
(718 |
) |
(973 |
) |
(20,439 |
) |
(29,177 |
) |
||||
| Net changes in liabilities relating to operating activities |
26,134 |
|
(2,085 |
) |
744,288 |
|
(62,506 |
) |
||||
| Cash provided by operations |
135,879 |
|
110,947 |
|
4,041,754 |
|
3,422,350 |
|
||||
| Interest received |
963 |
|
3,419 |
|
28,459 |
|
105,674 |
|
||||
| Income taxes paid |
(11,844 |
) |
(1,160 |
) |
(349,981 |
) |
(35,845 |
) |
||||
| Income taxes received |
– |
|
– |
|
13 |
|
– |
|
||||
| Net cash provided by operating activities |
124,998 |
|
113,206 |
|
3,720,245 |
|
3,492,179 |
|
||||
| Cash flows from investing activities | ||||||||||||
| Acquisition of equipment |
(7,680 |
) |
(2,490 |
) |
(226,959 |
) |
(76,972 |
) |
||||
| Acquisition of intangible assets |
(6,102 |
) |
(5,633 |
) |
(180,309 |
) |
(174,119 |
) |
||||
| Increase in refundable deposits |
(322 |
) |
(57 |
) |
(9,182 |
) |
(1,702 |
) |
||||
| Acquisition of business combinations |
(37,169 |
) |
– |
|
(1,112,458 |
) |
– |
|
||||
| Net cash used in investing activities |
(51,273 |
) |
(8,180 |
) |
(1,528,908 |
) |
(252,793 |
) |
||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from exercise of employee stock options |
529 |
|
501 |
|
15,632 |
|
15,479 |
|
||||
| Repayment of the principal portion of lease liabilities |
(2,560 |
) |
(2,196 |
) |
(75,647 |
) |
(67,877 |
) |
||||
| Purchase of treasury shares |
(5,969 |
) |
– |
|
(167,707 |
) |
– |
|
||||
| Treasury shares reissued to employees |
3,296 |
|
3,296 |
|
101,725 |
|
101,725 |
|
||||
| Distribution of cash dividends |
(39,369 |
) |
(32,529 |
) |
(1,216,887 |
) |
(980,751 |
) |
||||
| Cash dividend regain from canceled share-based compensation |
56 |
|
54 |
|
1,685 |
|
1,604 |
|
||||
| Net cash used in financing activities |
(44,017 |
) |
(30,874 |
) |
(1,341,199 |
) |
(929,820 |
) |
||||
| Effect of exchange rate changes on cash and cash equivalents |
(942 |
) |
527 |
|
(436,459 |
) |
(215,494 |
) |
||||
| Net increase in cash and cash equivalents |
28,766 |
|
74,679 |
|
413,679 |
|
2,094,072 |
|
||||
| Cash and cash equivalents at beginning of year |
270,380 |
|
195,701 |
|
8,106,000 |
|
6,011,928 |
|
||||
| Cash and cash equivalents at end of year |
299,146 |
|
270,380 |
|
8,519,679 |
|
8,106,000 |
|
||||
Contacts
Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com