Parade Technologies Reports Fourth Quarter and Fiscal 2018 Financial Results

Financial Highlights:


Q418 consolidated revenue US$101.24 million, compared with US$88.25
million in the year-ago quarter


Q418 consolidated net income US$22.44 million; Basic and Fully diluted
after-tax EPS US$0.29 (NT$9.01) and US$0.28 (NT$8.66), 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 2018 ended December 31, 2018,
and provided guidance for the first quarter of fiscal year 2019.


Consolidated revenue was US$101.24 million and consolidated net income
was US$22.44 million. Basic and fully diluted after-tax earnings per
share (“EPS”) were US$0.29 (NT$9.01) and US$0.28 (NT$8.66),
respectively. These results compared to consolidated revenue US$88.25
million and consolidated net income of US$14.51 million, or US$0.19
(NT$5.73) and US$0.18 (NT$5.51) per basic and fully diluted share, in
the year-ago quarter.


In US dollars, the fourth quarter of 2018 consolidated revenue increased
18.30% sequentially and was up 14.72% year-over-year.


The gross profit in the fourth quarter of 2018 was US$42.43 million,
representing an increase of 18.24% from the previous quarter and an
increase of 18.77% compared to the same quarter of last year.


The Company also reported financial results for fiscal year 2018.
Consolidated revenue was US$343.15 million, representing an increase of
0.80% from US$340.43 million in the prior year. Gross profit was
US$142.30 million and operating income was US$64.47 million. Net income
for fiscal year 2018 was US$65.06 million, or US$0.85 (NT$25.67) per
basic share and US$0.81 (NT$24.66) per fully diluted share. These
results compared with net income of US$63.57 million, or US$0.84
(NT$25.49) per basic share and US$0.81 (NT$24.55) 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 2019:


Revenue: US$88 ~97 Million


Gross Margin: 40% ~43%


Operating Expense: US$19.5 ~20.5 Million


The financial figures detailed above for the fourth quarter of 2018 and
for the year ended December 31, 2018 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,


 


Sept 30,




Dec 31,


 


Dec 31,




Dec 31,


 


Dec 31,






Dec 31,


 


Sept 30,




Dec 31,


 


Dec 31,




Dec 31,


 


Dec 31,






2018




2018




2018




2017




2018




2017






2018




2018




2018




2017




2018




2017


 


Revenue




101,242




85,579






101,242




88,248




343,145






340,428






3,123,334




2,624,695






3,123,334




2,657,137




10,363,888






10,351,803


Cost of goods sold




58,816




49,698


 




58,816




52,528




200,850


 




202,719






1,814,490




1,524,239


 




1,814,490




1,581,628




6,065,144


 




6,164,614


Gross profit




42,426




35,881


 




42,426




35,720




142,295


 




137,709






1,308,844




1,100,456


 




1,308,844




1,075,509




4,298,744


 




4,187,189


Research & development expenses




12,693




12,927






12,693




12,037




50,673






45,647






391,583




396,484






391,583




362,427




1,528,150






1,388,734


Sales & marketing expenses




4,173




4,048






4,173




4,345




15,968






16,670






128,748




124,156






128,748




130,829




481,584






507,068


General & administrative expenses




2,989




2,736


 




2,989




2,850




11,180


 




10,618






92,202




83,910


 




92,202




85,818




337,207


 




322,865


Total operating expenses




19,855




19,711


 




19,855




19,232




77,821


 




72,935






612,533




604,550


 




612,533




579,074




2,346,941


 




2,218,667


Operating income




22,571




16,170


 




22,571




16,488




64,474


 




64,774






696,311




495,906


 




696,311




496,435




1,951,803


 




1,968,522


Non-operating income and expenses




236




242


 




236




59




506


 




56






7,277




7,425


 




7,277




1,780




15,561


 




1,705


Income before income taxes




22,807




16,412


 




22,807




16,547




64,980


 




64,830






703,588




503,331


 




703,588




498,215




1,967,364


 




1,970,227


Income tax (benefit) expense




365




(72


)




365




2,035




(78


)




1,256






11,248




(2,225


)




11,248




61,273




(1,998


)




38,518


Net income




22,442




16,484


 




22,442




14,512




65,058


 




63,574






692,340




505,556


 




692,340




436,942




1,969,362


 




1,931,709


EPS – Basic (In Dollar)




$0.29




$0.21






$0.29




$0.19




$0.85






$0.84






$9.01




$6.57






$9.01




$5.73




$25.67






$25.49


Shares used in computing EPS-Basic (In thousands)




76,822




76,956






76,822




76,235




76,722






75,793






76,822




76,956






76,822




76,235




76,722






75,793


EPS – Diluted (In Dollar)




$0.28




$0.21






$0.28




$0.18




$0.81






$0.81






$8.66




$6.33






$8.66




$5.51




$24.66






$24.55


Shares used in computing EPS-Diluted (In thousands)




79,965


 


79,844


 


 


79,965


 


79,343


 


79,859


 


 


78,683






79,965


 


79,844


 


 


79,965


 


79,343


 


79,859


 


 


78,683


 




 




UNAUDITED CONSOLIDATED BALANCE SHEETS




USD in Thousands


 


 


NTD in Thousands


As of December 31, 2018 and 2017




Dec 31,


 


Dec 31,






Dec 31,


 


Dec 31,






2018




2017






2018




2017


Current assets




















Cash & cash equivalents




195,701






160,055








6,011,928






4,763,227




Available-for-sale financial assets – current






–












–




Accounts receivable, net




45,944






52,272








1,411,407






1,555,625




Inventories, net




35,800






34,275








1,099,789






1,020,015




Other current assets




17,586


 




9,681


 






540,247


 




288,120


 


Total current assets




295,031


 




256,283


 






9,063,371


 




7,626,987


 


Non-current assets




















Property, plant and equipment, net




10,614






8,786








326,052






261,470




Intangible assets




83,346






88,725








2,560,397






2,640,450




Deferred income tax assets




1,946






1,300








59,772






38,694




Other non-current assets




809


 




818


 






24,853


 




24,344


 


Total non-current assets




96,715


 




99,629


 






2,971,074


 




2,964,958


 


Total Assets




391,746


 




355,912


 






12,034,445


 




10,591,945


 




















 


Current Liabilities




















Accounts payable




31,626






25,788








971,566






767,441




Other payables




20,348






20,633








625,103






614,049




Current income tax liabilities




16,002






19,678








491,583






585,621




Other current liabilities




7,315


 




8,280


 






224,699


 




246,422


 


Total current liabilities




75,291


 




74,379


 






2,312,951


 




2,213,533


 


Equity




















Ordinary shares




26,021






25,812








790,147






783,766




Capital reserves




92,873






84,562








2,817,047






2,562,661




Retained earnings




224,586






190,921








6,879,370






5,874,547




Other equity




(20,433


)




(19,762


)






(561,620


)




(842,562


)


Treasury shares




(6,592


)




–


 






(203,450


)




–


 


Total equity




316,455


 




281,533


 






9,721,494


 




8,378,412


 


Total liabilities and equity




391,746


 




355,912


 






12,034,445


 




10,591,945


 






 




 




 


 




UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS




USD in Thousands






NTD in Thousands


For twelve months ended December 31, 2018 and 2017




Dec 31,


 


Dec 31,






Dec 31,


 


Dec 31,






2018




2017






2018


 


2017


Cash flows from operating activities






















Income before income tax for the year




64,980






64,830










1,967,364






1,970,227




Depreciation and amortization




11,527






9,897










347,530






301,170




Share-based compensation cost




8,199






6,577










246,603






200,144




Interest income




(270


)




(61


)








(8,277


)




(1,844


)


Income and expenses having no effect on cash flows




19,456


 




16,413


 








585,856


 




499,470


 


Accounts receivable




6,328






(4,714


)








194,400






(140,294


)


Inventories




(1,526


)




(7,945


)








(46,871


)




(236,455


)


Other current assets




(6,050


)




(544


)








(185,878


)




(16,221


)


Net changes in assets relating to operating activities




(1,248


)




(13,203


)








(38,349


)




(392,970


)


Accounts payable




5,839






(4,238


)








179,368






(126,119


)


Other payables




(285


)




3,739










(8,755


)




111,259




Other current liabilities




(966


)




(1,432


)








(29,672


)




(42,621


)


Net changes in liabilities relating to operating activities




4,588


 




(1,931


)








140,941


 




(57,481


)


Cash provided by operations




87,776


 




66,109


 








2,655,812


 


 


2,019,246


 


Interest received




277






55










8,356






1,661




Income tax paid




(6,057


)




(3,544


)








(182,618


)




(107,835


)


Income tax refund received




–


 




5,120


 








–


 




156,380


 


Net cash provided by operating activities




81,996


 




67,740


 








2,481,550


 




2,069,452


 


Cash flows from investing activities


















Acquisition of equipment




(5,221


)




(6,610


)








(157,413


)




(201,126


)


Acquisition of intangible assets




(2,886


)




(3,823


)








(87,010


)




(116,335


)


Decrease in refundable deposits




9


 




27


 








276


 




800


 


Net cash used in investing activities




(8,098


)




(10,406


)








(244,147


)




(316,661


)


Cash flows from financing activities


















Proceeds from exercise of employee stock options




489






1,062










14,729






32,323




Purchase of treasury shares




(9,352


)




(1,998


)








(284,138


)




(60,844


)


Treasury shares reissued to employees




2,760






1,998










80,688






60,844




Distribution of cash dividends




(33,182


)




(22,962


)








(965,599


)




(695,744


)


Cash dividend regain from canceled share-based compensation




34


 




12


 








1,060


 




371


 


Net cash used in financing activities




(39,251


)




(21,888


)








(1,153,260


)


 


(663,050


)


Effect of exchange rate changes on cash and cash equivalents




999






(378


)








164,558






(357,353


)


Increase in cash and cash equivalents




34,646






35,068










1,248,701






732,388




Cash and cash equivalents at beginning of year




160,055


 




124,987


 








4,763,227


 




4,030,839


 


Cash and cash equivalents at end of year




194,701


 




160,055


 








6,011,928


 




4,763,227


 






























 


Contacts

Parade TechnologiesYo-Ming Chang, +886-2-2627-9109ir@paradetech.com