Parade Technologies Reports Fourth Quarter and Fiscal 2018 Financial Results

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.

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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). Parades 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 VESAs 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 companys devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the companys 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 endedTwelve Months endedSequential QuarterThree Months endedTwelve 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,
201820182018201720182017201820182018201720182017
Revenue101,24285,579101,24288,248343,145340,4283,123,3342,624,6953,123,3342,657,13710,363,88810,351,803
Cost of goods sold58,81649,69858,81652,528200,850202,7191,814,4901,524,2391,814,4901,581,6286,065,1446,164,614
Gross profit42,42635,88142,42635,720142,295137,7091,308,8441,100,4561,308,8441,075,5094,298,7444,187,189
Research & development expenses12,69312,92712,69312,03750,67345,647391,583396,484391,583362,4271,528,1501,388,734
Sales & marketing expenses4,1734,0484,1734,34515,96816,670128,748124,156128,748130,829481,584507,068
General & administrative expenses2,9892,7362,9892,85011,18010,61892,20283,91092,20285,818337,207322,865
Total operating expenses19,85519,71119,85519,23277,82172,935612,533604,550612,533579,0742,346,9412,218,667
Operating income22,57116,17022,57116,48864,47464,774696,311495,906696,311496,4351,951,8031,968,522
Non-operating income and expenses23624223659506567,2777,4257,2771,78015,5611,705
Income before income taxes22,80716,41222,80716,54764,98064,830703,588503,331703,588498,2151,967,3641,970,227
Income tax (benefit) expense365(72)3652,035(78)1,25611,248(2,225)11,24861,273(1,998)38,518
Net income22,44216,48422,44214,51265,05863,574692,340505,556692,340436,942

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)76,82276,95676,82276,23576,72275,79376,82276,95676,82276,23576,72275,793
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)

79,96579,84479,96579,34379,85978,68379,96579,84479,96579,34379,85978,683
UNAUDITED CONSOLIDATED BALANCE SHEETSUSD in ThousandsNTD in Thousands

As of December 31, 2018 and 2017

Dec 31,

Dec 31,

Dec 31,

Dec 31,

2018201720182017

Current assets

Cash & cash equivalents195,701160,0556,011,9284,763,227
Available-for-sale financial assets – current
Accounts receivable, net45,94452,2721,411,4071,555,625
Inventories, net35,80034,2751,099,7891,020,015
Other current assets17,5869,681540,247288,120
Total current assets295,031256,2839,063,3717,626,987

Non-current assets

Property, plant and equipment, net10,6148,786326,052261,470
Intangible assets83,34688,7252,560,3972,640,450
Deferred income tax assets1,9461,30059,77238,694
Other non-current assets80981824,85324,344
Total non-current assets96,71599,6292,971,0742,964,958

Total Assets

391,746

355,912

12,034,445

10,591,945

Current Liabilities

Accounts payable31,62625,788971,566767,441
Other payables20,34820,633625,103614,049
Current income tax liabilities16,00219,678491,583585,621
Other current liabilities7,3158,280224,699246,422
Total current liabilities75,29174,3792,312,9512,213,533

Equity

Ordinary shares26,02125,812790,147783,766
Capital reserves92,87384,5622,817,0472,562,661
Retained earnings224,586190,9216,879,3705,874,547
Other equity(20,433)(19,762)(561,620)(842,562)
Treasury shares(6,592)(203,450)
Total equity316,455281,5339,721,4948,378,412

Total liabilities and equity

391,746

355,912

12,034,445

10,591,945

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWSUSD in ThousandsNTD in Thousands

For twelve months ended December 31, 2018 and 2017

Dec 31,Dec 31,Dec 31,

Dec 31,
201820172018

2017

Cash flows from operating activities

Income before income tax for the year64,98064,8301,967,3641,970,227
Depreciation and amortization11,5279,897347,530301,170
Share-based compensation cost8,1996,577246,603200,144
Interest income(270)(61)(8,277)(1,844)
Income and expenses having no effect on cash flows19,45616,413585,856499,470
Accounts receivable6,328(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 payable5,839(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 activities4,588(1,931)140,941(57,481)
Cash provided by operations87,77666,1092,655,812

2,019,246
Interest received277558,3561,661
Income tax paid(6,057)(3,544)(182,618)(107,835)

Income tax refund received

5,120156,380

Net cash provided by operating activities

81,996

67,7402,481,5502,069,452

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 deposits927276800

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 options4891,06214,72932,323
Purchase of treasury shares(9,352)(1,998)(284,138)(60,844)
Treasury shares reissued to employees2,7601,99880,68860,844
Distribution of cash dividends(33,182)(22,962)(965,599)(695,744)
Cash dividend regain from canceled share-based compensation34121,060371

Net cash used in financing activities

(39,251)(21,888)(1,153,260)

(663,050)
Effect of exchange rate changes on cash and cash equivalents999(378)164,558(357,353)
Increase in cash and cash equivalents34,64635,0681,248,701732,388
Cash and cash equivalents at beginning of year160,055124,9874,763,2274,030,839
Cash and cash equivalents at end of year194,701160,0556,011,9284,763,227

Parade Technologies
Yo-Ming Chang, +886-2-2627-9109
[email protected]