Parade Technologies Reports Fourth Quarter and Fiscal 2020 Financial Results

Posted on February 4, 2021

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
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	�	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

[email protected]

Parade Technologies Reports Fourth Quarter and Fiscal 2020 Financial Results

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