Parade Technologies Reports Third Quarter 2024 Financial Results

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 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

Contacts

Parade Technologies
Yo-Ming Chang, [phone]
[e-mail]