Press release

Parade Technologies Reports Fourth Quarter and Fiscal 2023 Financial Results

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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 2023 ended December 31, 2023, and provided guidance for the first quarter of fiscal year 2024.

Consolidated revenue was US$120.13 million and consolidated net income was US$20.06 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.25 (NT$8.05) and US$0.25 (NT$8.02), respectively. These results compared to consolidated revenue US$101.45 million and consolidated net income of US$14.48 million, or US$0.18 (NT$5.67) and US$0.18 (NT$5.60) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the fourth quarter of 2023 consolidated revenue increased 2.71% sequentially and was up 18.41% year-over-year.

The gross profit in the fourth quarter of 2023 was US$51.91 million, representing an increase of 1.44% from the previous quarter and an increase of 16.19% compared to the same quarter of last year.

The Company also reported financial results for fiscal year 2023. Consolidated revenue was US$441.25 million, representing a decrease of 35.10% from US$679.92 million in the prior year. Gross profit was US$192.93 million and operating income was US$62.87 million. Net income for fiscal year 2023 was US$64.97 million, or US$0.82 (NT$25.73) per basic share and US$0.82 (NT$25.55) per fully diluted share. These results compared with net income of 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 in the prior year.

Based on current business outlook, Parade is providing the following guidance for the first quarter of fiscal 2024:

  • Revenue: US$114.0 ~126.0 Million

  • Gross Margin: 43% ~47%

  • Operating Expense: US$32.5 ~35.5 Million

On November 29, 2023, Parade announced two new eDP Tcon devices DP821 and DP823 that comply to the newly released eDP v1.5 Standard. Systems utilizing eDP version v1.5 start production in 2024 and Parade’s new devices target the main-stream, high-volume display market. 120Hz is trending as the major frame rate for both consumer and commercial premium NB models. The DP821 supports display resolutions up to WQXGA (2560×1600) @120Hz, and the DP823 supports up to WUXGA (1920×1200) @120Hz. The DP821 and DP823 provide full eDP v1.5 functionality including Early Transport, Panel Replay (PR) which is the preferred function to use for Panel Self Refresh and other advanced features including GPU brand-specific variants. Both DP821 and DP823 support 30-bit input and global dimming for DisplayHDR 400 performance. The new DP821 and DP823 devices offer backward compatibility with eDP 1.4b and earlier devices as well as compatibility with Source devices compliant to the new specification.

On December 6, 2023, Parade announced the availability of the PS8481/PS8483 DP 2.1 2:1 retiming MUX/retimer family, and the PS8431 HDMI 2.1 2:1 retiming MUX for commercial and consumer PCs, host systems and peripherals. PS8481 and PS8483 support DisplayPort 2.1 up to UHBR20 20Gbps per lane, delivering up to 80Gbps total bandwidth. The devices are fully compliant with VESA DP 2.1 standard. PS8431, in compliance with HDMI 2.1 specification, features FRL support up to 12Gbps and backward compatibility with TMDS up to 6Gbps. The devices support low power consumption for standby and low power states, greatly extending the battery life of mobile devices and enabling system EnergyStar compliance.

The financial figures detailed above for the fourth quarter of 2023 and for the year ended December 31, 2023 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,

2023

2023

2023

2022

2023

2022

2023

2023

2023

2022

2023

2022

 
Revenue

120,126

116,959

120,126

101,450

441,253

679,916

3,824,814

3,705,248

3,824,814

3,181,446

13,769,072

20,055,284

Cost of goods sold

68,215

65,785

68,215

56,774

248,327

363,733

2,171,953

2,084,065

2,171,953

1,780,425

7,749,660

10,739,544

Gross profit

51,911

51,174

51,911

44,676

192,926

316,183

1,652,861

1,621,183

1,652,861

1,401,021

6,019,412

9,315,740

Research & development expenses

20,880

21,911

20,880

20,074

82,976

83,873

664,826

694,131

664,826

629,511

2,586,872

2,497,656

Sales & marketing expenses

7,399

6,647

7,399

6,469

28,432

29,875

235,593

210,593

235,593

202,857

885,740

887,170

General & administrative expenses

4,500

4,268

4,500

4,114

18,649

22,439

143,259

135,108

143,259

129,023

580,273

664,390

Expected credit gain

(84)

(2,549)

Total operating expenses

32,779

32,742

32,779

30,657

130,057

136,187

1,043,678

1,037,283

1,043,678

961,391

4,052,885

4,049,216

Operating income

19,132

18,432

19,132

14,019

62,869

179,996

609,183

583,900

609,183

439,630

1,966,527

5,266,524

Non-operating income

2,519

2,386

2,519

1,800

8,228

3,521

80,201

75,605

80,201

56,441

257,447

108,309

Income before income taxes

21,651

20,818

21,651

15,819

71,097

183,517

689,384

659,505

689,384

496,071

2,223,974

5,374,833

Income tax expense

1,594

1,502

1,594

1,335

6,124

16,269

50,738

47,577

50,738

41,861

190,840

476,514

Net income

20,057

19,316

20,057

14,484

64,973

167,248

638,646

611,928

638,646

454,210

2,033,134

4,898,319

EPS – Basic (In Dollar)

$0.25

$0.24

$0.25

$0.18

$0.82

$2.09

$8.05

$7.71

$8.05

$5.67

$25.73

$61.35

Shares used in computing EPS-Basic (In thousands)

79,353

79,318

79,353

80,160

79,011

79,845

79,353

79,318

79,353

80,160

79,011

79,845

EPS – Diluted (In Dollar)

$0.25

$0.24

$0.25

$0.18

$0.82

$2.06

$8.02

$7.68

$8.02

$5.60

$25.55

$60.35

Shares used in computing EPS-Diluted (In thousands)

79,650

79,639

79,650

81,067

79,578

81,160

79,650

79,639

79,650

81,067

79,578

81,160

 
 
UNAUDITED CONSOLIDATED BALANCE SHEETS
As of DECEMBER 31, 2023 and 2022
USD in Thousands NTD in Thousands
Dec 31, Dec 31, Dec 31, Dec 31,

2023

2022

2023

2022

Current assets
Cash & cash equivalents

276,379

227,137

8,487,601

6,975,384

Accounts receivable, net

54,103

34,707

1,661,511

1,065,863

Inventories, net

122,885

145,493

3,773,792

4,468,087

Other current assets

19,419

20,236

596,344

621,454

Total current assets

472,786

427,573

14,519,248

13,130,788

Non-current assets
Property, plant and equipment, net

12,768

16,136

392,101

495,523

Right-of-use assets

8,409

5,302

258,252

162,812

Intangible assets

98,528

103,038

3,025,792

3,164,291

Deferred income tax assets

12,704

11,621

390,134

356,894

Other non-current assets

155,748

155,044

4,783,027

4,761,390

Total non-current assets

288,157

291,141

8,849,306

8,940,910

Total Assets

760,943

718,714

23,368,554

22,071,698

 
Current Liabilities
Accounts payable

51,028

13,003

1,567,047

399,308

Other payables

44,837

100,624

1,374,728

2,970,174

Current income tax liabilities

11,415

12,846

350,551

394,513

Lease liabilities – current

3,241

2,656

99,534

81,569

Other current liabilities

7,081

13,474

217,468

413,782

Total current liabilities

117,602

142,603

3,609,328

4,259,346

Non-current Liabilities
Lease liabilities – non-current

5,168

2,646

158,718

81,243

Total non-current liabilities

5,168

2,646

158,718

81,243

Equity
Ordinary shares

26,731

26,740

811,636

811,913

Capital reserves

136,477

138,110

4,158,670

4,192,921

Retained earnings

526,348

492,999

15,601,516

14,671,389

Other equity

(6,722)

(14,299)

422,135

208,496

Treasury shares

(44,661)

(70,085)

(1,393,449)

(2,153,610)

Total equity

638,173

573,465

19,600,508

17,731,109

Total liabilities and equity

760,943

718,714

23,368,554

22,071,698

 
 
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2023 and 2022
USD in Thousands NTD in Thousands
Dec 31, Dec 31, Dec 31, Dec 31,

2023

2022

2023

2022

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

71,097

183,517

2,223,974

5,374,833

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

21,824

21,960

679,821

654,416

Loss on disposal of equipment

665

35

Loss on disposal of intangible assets

263

1

8,191

19,817

Share-based compensation cost

33,480

32,529

1,029,044

969,164

Interest income

(7,135)

(2,069)

(223,099)

(63,911)

Income and expenses having no effect on cash flows

48,432

53,086

1,493,957

1,579,521

Accounts receivable

(19,396)

15,675

(595,648)

481,391

Inventories

22,608

(69,714)

694,295

(2,140,923)

Other current assets

(26,653)

(37,354)

(815,386)

(1,078,797)

Net changes in assets relating to operating activities

(23,441)

(91,393)

(716,739)

(2,738,329)

Accounts payable

38,025

(27,843)

1,167,739

(855,072)

Other payables

(8,526)

(8,977)

(261,819)

(275,698)

Other current liabilities

(6,392)

3,430

(196,314)

105,341

Net changes in liabilities relating to operating activities

23,107

(33,390)

709,606

(1,025,429)

Cash inflow generated from operations

119,195

111,820

3,710,798

3,190,596

Interest received

7,135

2,069

223,099

63,911

Income taxes paid

(7,365)

(24,117)

(229,410)

(718,678)

Income taxes received

242

7,219

Net cash provided by operating activities

118,965

90,014

3,704,487

2,543,048

Cash flows from investing activities
Acquisition of equipment

(4,078)

(5,757)

(127,044)

(171,548)

Acquisition of intangible assets

(525)

(466)

(16,342)

(13,901)

Decrease (increase) in refundable deposits

7,670

(72,127)

235,551

(2,215,017)

Increase in other prepayments

(14,601)

(11,997)

(454,827)

(357,512)

Net cash flows used in investing activities

(11,534)

(90,347)

(362,662)

(2,757,978)

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

2,448

72,937

Repayment of the principal portion of lease liabilities

(3,425)

(3,663)

(106,693)

(109,154)

Purchase of treasury shares

(48,277)

(1,547,482)

Proceeds from exercise of disgorgement

11

Treasury shares reissued to employees

25,424

34,533

760,161

959,141

Distribution of cash dividends

(83,624)

(93,720)

(2,439,014)

(2,622,127)

Cash dividend regain from canceled share-based compensation

136

76

4,059

2,244

Net cash flows used in financing activities

(61,489)

(108,603)

(1,781,487)

(3,244,430)

Effect of exchange rate changes

3,300

3,640

(48,121)

1,233,001

Net increase (decrease) in cash and cash equivalents

49,242

(105,296)

1,512,217

(2,226,359)

Cash and cash equivalents at beginning of year

227,137

332,433

6,975,384

9,201,743

Cash and cash equivalents at end of year

276,379

227,137

8,487,601

6,975,384