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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

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 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

Contacts

Parade Technologies

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

[email protected]

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