Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the third quarter fiscal year 2024 ended September 30, 2024, and provided guidance for the fourth quarter of fiscal year 2024.
Consolidated revenue was US$136.25 million and consolidated net income was US$23.58 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.30 (NT$9.57) and US$0.30 (NT$9.54), respectively. These results compared to consolidated revenue US$116.96 million and consolidated net income of US$19.32 million, or US$0.24 (NT$7.71) and US$0.24 (NT$7.68) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the third quarter of 2024 consolidated revenue increased 12.72% sequentially and was up 16.49% year-over-year.
The gross profit in the third quarter of 2024 was US$57.95 million, representing an increase of 13.01% from the previous quarter and an increase of 13.24% compared to the same quarter of last year.
On August 21, 2024, Parade announced the availability of the PS8353 DP 2.1a 20Gbps linear redriver, facilitating DP 2.1a reversible or bidirectional active cables and DP/eDP signal conditioning for notebook, desktop PC and tablet designs. PS8353 supports DP 2.1a/eDP up to 4 lanes and UHBR20 20Gbps link rate. It features low power consumption and power management including Modern Standby (approx. 0.5mW) and DP 2.1a Advanced Link Power Management (ALPM). Its low power design minimizes power use in DP 2.1a active cables and greatly extends the battery life of mobile devices. PS8353 can greatly extend the cable length for DP 2.1a beyond the typical 1.2m / 3.9ft limit for a passive cable, without degrading the full performance.
On August 27, 2024, Parade introduced the TC1312V device, its first fully integrated AEC-Q100 qualified touch with Tcon embedded drivers targeting automotive cockpit displays. The TC1312V combines Parade’s broad portfolio of patented touchscreen technology and proven in-cell, display processing and high-speed signal technology, to provide the lowest EMI and lowest latency touch experience for automotive displays. The TC1312V leverages Parade’s TrueTouch™ patented technology portfolio and design experience gained from shipping over 1 billion touch devices. It provides superior EMI suppression, low power, low latency and flawless touch experience across the temperature extremes of the automotive cabin. The TC1312V also provides accurate touch response for a wide range of finger sizes and gloved touches across various materials and thicknesses. Using Active Shielding technology, TC1312V can deliver best-in-class water rejection and wet finger tracking, perfect for reliable touch with surface condensation or even stepping in from the rain. In addition, the TC1312V offers the industry’s only true VRR (Variable Refresh Rate) solution for automotive displays.
On September 4, 2024, Parade proudly introduces the PS9010 USB4® dock controller as the newest member of Parade’s USB4® product family. Designed to meet the rising demand for high-speed, multi-protocol connectivity, the PS9010 sets a new standard for USB4® peripheral controllers, offering unprecedented performance, versatility, and power efficiency. The PS9010 is built to optimize the user experience in modern computing environments where high-bandwidth data transfers and display connections are critical. The chip seamlessly integrates support for USB4®, Thunderbolt 3, DisplayPort 2.1, and SuperSpeed USB, ensuring compatibility with a wide range of devices and peripherals. Leveraging Parade’s industry-leading USB4® PHY technology, the PS9010 is fully compliant with USB4®, USB 3.2, and related USB-IF specifications, as well as VESA’s DisplayPort standards. Whether used in docking stations, monitors, or external peripheral devices, this cutting-edge chip ensures smooth and reliable performance across all connection types. Additionally, the PS9010’s integrated PCI Express, DisplayPort, and USB 3.2 tunneling functionality provides the ultimate flexibility for complex peripheral setups.
On September 4, 2024, Parade also announces the availability of PS8650 DP 2.1a 1:4 MST hub controller for docks, accessories, video displays, and DT/WS graphics cards that need DP port expansion. The PS8650 is compliant with VESA DisplayPort v2.1a specification. The DP 2.1a receiver supports MST (Multi-Stream Transport) and SST (Single Stream Transport) modes, up to 4 lanes at UHBR20 20Gbps link rate, and DSC v1.2a decode and pass-through. The four DP 2.1a transmitters, each up to 4 lanes at UHBR20 link rate, are capable of MST and SST modes, single video split, lane count/link rate conversion including DP 2.1 MST to DP 1.4 MST conversion, and DSC decode and compressed video pass-through. PS8650 represents the best-in-class power performance solution on the market with its low power design greatly reducing system power consumption. It complements Parade PS9010 USB4 dock controller and PS8839 USB-C retiming DeMux with DP 2.1a port expansion for dock solutions. PS8650 expands Parade DP 2.1a product portfolio of DP 2.1a retimer, redriver and retiming MUX, as well as USB-C retiming MUX and DeMUX, USB4 retimers and USB4 dock controller with DP 2.1 Alt Mode, providing end-to-end proven solutions.
On October 10, 2024, Parade announced a series of new eDP Tcon devices developed for high-performance PC gaming applications. DP826 enables resolution support up to WUXGA 360Hz. DP827 enables resolution support up to WQXGA 240Hz and DP828 enables resolution support up to UHD 144Hz. The DP828 supports UHD (3840×2160) displays up to 144Hz refresh rate and a derivative part number DP828A supports 2880×1800 and 3000×2000 displays up to 180Hz refresh rate. It supports GPU brand-specific variants including Intel IDT (Intelligent Display Technology), LOBF-Link Off Between active Frame, AMD Freesync Premium Pro, Freesync Replay and Freesync Fast Transport as well as Nvidia G-Sync and DDS (Dynamic Display Switching), and it supports 30-bit input and global dimming for DisplayHDR 400 performance. The DP828 provides full eDP 1.5 functionality including Panel Replay (PR) which is the preferred function to use for Panel Self Refresh, Early Transport, and other advanced features. It accepts up to four lanes on the eDP interface with link rates up to 8.1 Gbps (HBR3). The DP826 and DP827 provide an identical feature set, but with high refresh rates and lower display resolution applications.
Based on current business outlook, Parade is providing the following guidance for the fourth quarter of fiscal 2024:
- Revenue: US$121.0 ~134.0 Million
- Gross Margin: 42% ~46%
- Operating Expense: US$32.0 ~35.0 Million
The financial figures detailed above for the third quarter of 2024 have been reviewed by independent accountants.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (“TPEx”) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
Parade Technologies, Ltd. and Subsidiaries.
The reader is advised that these consolidated financial statements have been prepared originally in NT$ 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 | Nine Months ended | Sequential Quarter | Three Months ended | Nine Months ended | ||||||||||||||||||
| Sep 30, | Jun 30, | Sep 30, | Sep 30, | Sep 30, | Sep 30, | Sep 30, | Jun 30, | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
|
2024 |
2024 |
2024 |
2023 |
2024 |
2023 |
2024 |
2024 |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| Revenue |
136,246 |
120,871 |
136,246 |
116,959 |
378,395 |
321,127 |
4,400,736 |
3,910,184 |
4,400,736 |
3,705,248 |
12,125,112 |
9,944,258 |
|||||||||||
| Cost of goods sold |
78,299 |
69,593 |
78,299 |
65,785 |
217,213 |
180,112 |
2,529,059 |
2,251,323 |
2,529,059 |
2,084,065 |
6,960,530 |
5,577,707 |
|||||||||||
| Gross profit |
57,947 |
51,278 |
57,947 |
51,174 |
161,182 |
141,015 |
1,871,677 |
1,658,861 |
1,871,677 |
1,621,183 |
5,164,582 |
4,366,551 |
|||||||||||
| Research & development expenses |
22,752 |
23,158 |
22,752 |
21,911 |
68,755 |
62,096 |
734,893 |
749,173 |
734,893 |
694,131 |
2,202,540 |
1,922,046 |
|||||||||||
| Sales & marketing expenses |
7,014 |
7,554 |
7,014 |
6,647 |
21,981 |
21,033 |
226,551 |
244,373 |
226,551 |
210,593 |
704,054 |
650,147 |
|||||||||||
| General & administrative expenses |
4,849 |
4,775 |
4,849 |
4,268 |
14,702 |
14,149 |
156,632 |
154,480 |
156,632 |
135,108 |
470,803 |
437,014 |
|||||||||||
| Expected credit gain |
– |
– |
– |
(84) |
– |
– |
– |
– |
– |
(2,549) |
– |
– |
|||||||||||
| Total operating expenses |
34,615 |
35,487 |
34,615 |
32,742 |
105,438 |
97,278 |
1,118,076 |
1,148,026 |
1,118,076 |
1,037,283 |
3,377,397 |
3,009,207 |
|||||||||||
| Operating income |
23,332 |
15,791 |
23,332 |
18,432 |
55,744 |
43,737 |
753,601 |
510,835 |
753,601 |
583,900 |
1,787,185 |
1,357,344 |
|||||||||||
| Non-operating income |
3,072 |
2,866 |
3,072 |
2,386 |
8,465 |
5,709 |
99,235 |
92,723 |
99,235 |
75,605 |
271,435 |
177,246 |
|||||||||||
| Income before income taxes |
26,404 |
18,657 |
26,404 |
20,818 |
64,209 |
49,446 |
852,836 |
603,558 |
852,836 |
659,505 |
2,058,620 |
1,534,590 |
|||||||||||
| Income tax expense |
2,822 |
1,077 |
2,822 |
1,502 |
4,836 |
4,530 |
91,135 |
34,852 |
91,135 |
47,577 |
155,464 |
140,102 |
|||||||||||
| Net income |
23,582 |
17,580 |
23,582 |
19,316 |
59,373 |
44,916 |
761,701 |
568,706 |
761,701 |
611,928 |
1,903,156 |
1,394,488 |
|||||||||||
| EPS – Basic (In Dollar) |
$0.30 |
$0.22 |
$0.30 |
$0.24 |
$0.74 |
$0.57 |
$9.57 |
$7.11 |
$9.57 |
$7.71 |
$23.87 |
$17.68 |
|||||||||||
| Shares used in computing EPS-Basic (In thousands) |
79,629 |
79,939 |
79,629 |
79,318 |
79,737 |
78,888 |
79,629 |
79,939 |
79,629 |
79,318 |
79,737 |
78,888 |
|||||||||||
| EPS – Diluted (In Dollar) |
$0.30 |
$0.22 |
$0.30 |
$0.24 |
$0.74 |
$0.56 |
$9.54 |
$7.09 |
$9.54 |
$7.68 |
$23.76 |
$17.53 |
|||||||||||
| Shares used in computing EPS-Diluted (In thousands) |
79,836 |
80,232 |
79,836 |
79,639 |
80,106 |
79,530 |
79,836 |
80,232 |
79,836 |
79,639 |
80,106 |
79,530 |
|||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS As of SEPTEMBER 30, 2024 and 2023 |
USD in Thousands | NTD in Thousands | |||||||||||||||||||||
| Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||
| Current assets | |||||||||||||||||||||||
| Cash & cash equivalents |
304,902 |
240,124 |
9,650,152 |
7,748,801 |
|||||||||||||||||||
| Accounts receivable, net |
54,152 |
54,839 |
1,713,915 |
1,769,655 |
|||||||||||||||||||
| Inventories, net |
110,296 |
117,406 |
3,490,868 |
3,788,694 |
|||||||||||||||||||
| Other current assets |
23,486 |
23,297 |
743,341 |
751,801 |
|||||||||||||||||||
| Total current assets |
492,836 |
435,666 |
15,598,276 |
14,058,951 |
|||||||||||||||||||
| Non-current assets | |||||||||||||||||||||||
| Property, plant and equipment, net |
10,604 |
13,808 |
335,622 |
445,570 |
|||||||||||||||||||
| Right-of-use assets |
8,514 |
4,613 |
269,463 |
148,874 |
|||||||||||||||||||
| Intangible assets |
100,239 |
99,687 |
3,172,557 |
3,216,902 |
|||||||||||||||||||
| Deferred income tax assets |
12,433 |
11,840 |
393,502 |
382,067 |
|||||||||||||||||||
| Other non-current assets |
156,286 |
156,074 |
4,946,461 |
5,036,493 |
|||||||||||||||||||
| Total non-current assets |
288,076 |
286,022 |
9,117,605 |
9,229,906 |
|||||||||||||||||||
| Total Assets |
780,912 |
721,688 |
24,715,881 |
23,288,857 |
|||||||||||||||||||
| Current Liabilities | |||||||||||||||||||||||
| Accounts payable |
48,733 |
48,663 |
1,542,412 |
1,570,357 |
|||||||||||||||||||
| Other payables |
25,609 |
26,003 |
810,539 |
839,104 |
|||||||||||||||||||
| Current income tax liabilities |
12,169 |
10,494 |
385,147 |
338,644 |
|||||||||||||||||||
| Lease liabilities – current |
3,492 |
3,038 |
110,505 |
98,046 |
|||||||||||||||||||
| Other current liabilities |
6,321 |
4,383 |
200,058 |
141,448 |
|||||||||||||||||||
| Total current liabilities |
96,324 |
92,581 |
3,048,661 |
2,987,599 |
|||||||||||||||||||
| Non-current Liabilities | |||||||||||||||||||||||
| Lease liabilities – non-current |
5,022 |
1,575 |
158,958 |
50,828 |
|||||||||||||||||||
| Total non-current liabilities |
5,022 |
1,575 |
158,958 |
50,828 |
|||||||||||||||||||
| Equity | |||||||||||||||||||||||
| Ordinary shares |
26,730 |
26,731 |
811,610 |
811,641 |
|||||||||||||||||||
| Capital reserves |
136,328 |
135,591 |
4,189,121 |
4,232,535 |
|||||||||||||||||||
| Retained earnings |
566,617 |
519,088 |
16,880,227 |
15,353,693 |
|||||||||||||||||||
| Other equity |
(3,262) |
(9,217) |
1,139,130 |
1,246,010 |
|||||||||||||||||||
| Treasury shares |
(46,847) |
(44,661) |
(1,511,826) |
(1,393,449) |
|||||||||||||||||||
| Total equity |
679,566 |
627,532 |
21,508,262 |
20,250,430 |
|||||||||||||||||||
| Total liabilities and equity |
780,912 |
721,688 |
24,715,881 |
23,288,857 |
|||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 and 2023 |
USD in Thousands | NTD in Thousands | |||||||||||||||||||||
| Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||||||
| Income before income tax for the period |
64,209 |
49,446 |
2,058,620 |
1,534,590 |
|||||||||||||||||||
| Depreciation and amortization (including the right-of-use assets) |
16,130 |
16,494 |
516,652 |
510,197 |
|||||||||||||||||||
| Loss on disposal of equipment |
22 |
– |
694 |
– |
|||||||||||||||||||
| Loss on disposal of intangible assets |
356 |
263 |
11,415 |
8,134 |
|||||||||||||||||||
| Share-based compensation cost |
22,833 |
25,390 |
721,721 |
776,250 |
|||||||||||||||||||
| Interest income |
(8,287) |
(4,851) |
(265,706) |
(150,377) |
|||||||||||||||||||
| Income and expenses having no effect on cash flows |
31,054 |
37,296 |
984,776 |
1,144,204 |
|||||||||||||||||||
| Accounts receivable |
(49) |
(20,132) |
(1,547) |
(649,649) |
|||||||||||||||||||
| Inventories |
12,589 |
28,087 |
398,435 |
906,362 |
|||||||||||||||||||
| Other current assets |
(24,519) |
(24,147) |
(748,986) |
(634,589) |
|||||||||||||||||||
| Net changes in assets relating to operating activities |
(11,979) |
(16,192) |
(352,098) |
(377,876) |
|||||||||||||||||||
| Accounts payable |
(2,294) |
35,661 |
(72,600) |
1,150,765 |
|||||||||||||||||||
| Accrued expenses |
(6,428) |
(14,560) |
(203,433) |
(469,850) |
|||||||||||||||||||
| Other current liabilities |
(760) |
(9,091) |
(24,067) |
(293,354) |
|||||||||||||||||||
| Net changes in liabilities relating to operating activities |
(9,482) |
12,010 |
(300,100) |
387,561 |
|||||||||||||||||||
| Cash inflow generated from operations |
73,802 |
82,560 |
2,391,198 |
2,688,479 |
|||||||||||||||||||
| Interest received |
8,287 |
4,851 |
265,706 |
150,377 |
|||||||||||||||||||
| Income taxes paid |
(3,002) |
(6,822) |
(96,164) |
(211,015) |
|||||||||||||||||||
| Income taxes received |
– |
1 |
– |
||||||||||||||||||||
| Net cash provided by operating activities |
79,087 |
80,589 |
2,560,741 |
2,627,841 |
|||||||||||||||||||
| Cash flows from investing activities | |||||||||||||||||||||||
| Acquisition of equipment |
(2,670) |
(3,621) |
(85,510) |
(111,985) |
|||||||||||||||||||
| Acquisition of intangible assets |
(277) |
(216) |
(8,874) |
(6,689) |
|||||||||||||||||||
| Decrease in refundable deposits |
4,462 |
7,662 |
141,233 |
247,251 |
|||||||||||||||||||
| Increase in other prepayments |
(15,407) |
(13,719) |
(493,499) |
(424,340) |
|||||||||||||||||||
| Net cash flows used in investing activities |
(13,892) |
(9,894) |
(446,650) |
(295,763) |
|||||||||||||||||||
| Cash flows from financing activities | |||||||||||||||||||||||
| Distribution of cash dividends |
(32,487) |
(83,624) |
(1,015,560) |
(2,439,014) |
|||||||||||||||||||
| Repayment of the principal portion of lease liabilities |
(2,860) |
(2,492) |
(91,613) |
(77,091) |
|||||||||||||||||||
| Purchase of treasury shares |
(28,581) |
– |
(926,309) |
– |
|||||||||||||||||||
| Treasury shares reissued to employees |
26,395 |
25,424 |
807,932 |
760,161 |
|||||||||||||||||||
| Cash dividend regain from canceled share-based compensation |
59 |
128 |
1,864 |
3,787 |
|||||||||||||||||||
| Net cash flows used in financing activities |
(37,474) |
(60,564) |
(1,223,686) |
(1,752,157) |
|||||||||||||||||||
| Effect of exchange rate changes |
802 |
2,856 |
272,146 |
193,496 |
– |
||||||||||||||||||
| Net increase in cash and cash equivalents |
28,523 |
12,987 |
1,162,551 |
773,417 |
|||||||||||||||||||
| Cash and cash equivalents at beginning of period |
276,379 |
227,137 |
8,487,601 |
6,975,384 |
|||||||||||||||||||
| Cash and cash equivalents at end of period |
304,902 |
240,124 |
9,650,152 |
7,748,801 |
|||||||||||||||||||
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