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 |
USD in Thousands |
NTD in Thousands |
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|
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 Technologies
Yo-Ming Chang, +886-2-2627-9109
ir@paradetech.com