Financial Highlights:

  • Q215 consolidated revenue US$49.30 million, compared with US$46.85 million in the year-ago quarter
  • Q215 Consolidated net income US$8.78 million; Basic and Fully diluted after-tax EPS US$0.12 (NT$3.63) and US$0.12 (NT$3.56), respectively

Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading video display and interface IC supplier, today announced financial results for the second quarter fiscal 2015 ended June 30, 2015, and provided guidance for the third quarter of fiscal year 2015 that is excluding any financial estimation from the Cypress’s TrueTouch mobile business acquisition. The Cypress’s TrueTouch mobile business acquisition is expected to close during the third quarter of 2015.

Consolidated revenue was US$49.30 million and consolidated net income was US$8.78 million. Basic and fully diluted after-tax earnings per share (“EPS”) were US$0.12 (NT$3.63) and US$0.12 (NT$3.56), respectively. These results compared to consolidated revenue US$46.85 million and consolidated net income of US$9.23 million, or US$0.13 (NT$3.75) and US$0.12 (NT$3.68) per basic and fully diluted share, in the year-ago quarter.

In US dollars, the second quarter consolidated revenue increased 2.39% sequentially and was up 5.24% year-over-year.

The gross profit in the second quarter of 2015 was US$20.34 million, representing an increase of 4.75% from the previous quarter and an increase of 4.70% compared to the same quarter of last year.

Based on current business outlook excluding Cypress’s TrueTouch mobile business acquisition, Parade is providing the following guidance for the third quarter of fiscal 2015:

  • Revenue: US$47.5 ~54.5 Million
  • Gross Margin: 40% ~43%
  • Operating Expense: US$11 ~12 Million

The financial figures detailed above for the second quarter of 2015 have been reviewed by independent accountants.

About Parade Technologies, Ltd.

Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO) is a leading fabless supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. Parade’s portfolio of IC products serves the growing demand for DisplayPort™, eDP™ (Embedded DisplayPort), HDMI™, MHL®, SATA, and USB ICs for display, storage and interface applications.

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 “Standard-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   Six Months ended Sequential Quarter   Three Months ended   Six Months ended June 30,   March 31, June 30,   June 30, June 30,   June 30, June 30,   March 31, June 30,   June 30, June 30,   June 30, 2015 2015 2015 2014 2015 2014 2015 2015 2015 2014 2015 2014   Revenue 49,304 48,155 49,304 46,848 97,459 91,379 ######## 1,517,857 ######## 1,410,129 ######## 2,758,072 Cost of goods sold 28,961 28,734 28,961 27,419 57,695 53,476 893,165 905,703 893,165 825,319 ######## 1,614,051 Gross profit 20,343 19,421 20,343 19,429 39,764 37,903 627,360 612,154 627,360 584,810 ######## 1,144,021 Research & development expenses 6,293 6,127 6,293 5,877 12,420 11,354 194,072 193,125 194,072 176,894 387,197 342,687 Sales & marketing expenses 2,479 2,329 2,479 2,197 4,808 4,231 76,454 73,420 76,454 66,100 149,874 127,689 General & administrative expenses 1,969 1,933 1,969 1,705 3,902 3,255 60,714 60,930 60,714 51,329 121,644 98,237 Total operating expenses 10,741 10,389 10,741 9,779 21,130 18,840 331,240 327,475 331,240 294,323 658,715 568,613 Operating income 9,602 9,032 9,602 9,650 18,634 19,063 296,120 284,679 296,120 290,487 580,799 575,408 Non-operating income and expenses 90 28 90 36 118 76 2,780 889 2,780 1,104 3,669 2,313 Income before income taxes 9,692 9,060 9,692 9,686 18,752 19,139 298,900 285,568 298,900 291,591 584,468 577,721 Income tax expense 915 962 915 458 1,877 1,401 28,209 30,314 28,209 13,804 58,523 42,344 Net income 8,777 8,098 8,777 9,228 16,875 17,738 270,691 255,254 270,691 277,787 525,945 535,377 EPS - Basic (In Dollar) $0.12 $0.11 $0.12 $0.13 $0.23 $0.24 $3.63 $3.42 $3.63 $3.75 $7.05 $7.22 Shares used in computing EPS-Basic (In thousands) 74,585 74,707 74,585 74,118 74,646 74,151 74,585 74,707 74,585 74,118 74,646 74,151 EPS - Diluted (In Dollar) $0.12 $0.11 $0.12 $0.12 $0.22 $0.23 $3.56 $3.36 $3.56 $3.68 $6.92 $7.09 Shares used in computing EPS-Diluted (In thousands) 75,981   76,058   75,981  

75,545

  76,052   75,512 75,981   76,058   75,981   75,545   76,052   75,512   UNAUDITED CONSOLIDATED BALANCE SHEETS   USD in Thousands   NTD in Thousands As of June 30, 2015 and 2014 June 30,   June 30, June 30,   June 30, 2015 2014 2015 2014 Current assets Cash & cash equivalents 168,859 135,767 5,211,001 4,055,378 Available-for-sale financial assets - current - 1,086 - 32,432 Accounts receivable, net 27,182 30,171 838,845 901,201 Inventories, net 18,230 21,636 562,577 646,269 Other current assets 11,471   5,469   354,001 163,362   Total current assets 225,742   194,129   6,966,424 5,798,642   Non-current assets Property, plant and equipment, net 4,363 2,767 134,635 82,642 Intangible assets 165 220 5,076 6,570 Deferred income tax assets 176 116 5,443 3,461 Other non-current assets 1,211   1,819   37,357 54,331   Total non-current assets 5,915   4,922   182,511 147,004   Total Assets 231,657   199,051   7,148,935 5,945,646     Current Liabilities Accounts payable 16,863 25,932 520,406 774,585 Other payables 22,534 15,219 697,117 451,957 Current tax liabilities 10,624 7,290 327,853 217,764 Other current liabilities 4,038   4,785   124,619 142,901   Total current liabilities 54,059   53,226   1,669,995 1,587,207   Equity Ordinary shares 24,895 24,680 755,326 748,802 Capital reserves 55,744 49,024 1,669,845 1,466,614 Retained earnings 101,543 74,155 3,045,088 2,207,488 Other equity (4,584 ) (2,034 ) 8,681 (64,465 ) Total equity 177,598   145,825   5,478,940 4,358,439   Total liabilities and equity 231,657   199,051   7,148,935 5,945,646     UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS   USD in Thousands   NTD in Thousands For six months ended June 30, 2015 and 2014 June 30,   June 30, June 30,   June 30, 2015 2014 2015 2014 Cash flows from operating activities Income before income tax for the period 18,752 19,139 584,468 577,721 Depreciation and amortization 855 686 26,666 20,706 Loss on disposal of equipment 46 - 1,435 - Share-based compensation cost 1,491 1,062 46,487 32,065 Interest income (31 ) (14 ) (981 ) (412 ) Income and expenses having no effect on cash flows 2,361   1,734   73,607   52,359   Accounts receivable 7,093 4,154 218,885 124,094 Inventories (4,587 ) (13,947 ) (141,563 ) (416,592 ) Other current assets (5,443 ) (2,552 ) (168,007 ) (76,240 ) Other non-current assets 291   291   8,994   8,706   Net changes in assets relating to operating activities (2,646 ) (12,054 ) (81,691 ) (360,032 ) Accounts payable 6,070 9,621 187,309 287,384 Other payables (814 ) (445 ) (25,132 ) (13,286 ) Other current liabilities 298   2,409   9,209   71,942   Net changes in liabilities relating to operating activities 5,554   11,585   171,386   346,040   Cash provided by operations 24,021   20,404   747,770   616,088   Interest received 33 17 1,033 528 Income taxes paid (405 ) (486 ) (12,622 ) (14,676 ) Net cash provided by operating activities 23,649   19,935   736,181   601,940   Cash flows from investing activities Decrease (increase) in available for sale financial assets - current 1,086 (6 ) 33,507 (196 ) Acquisition of equipment and computer software (1,350 ) (355 ) (42,085 ) (10,725 ) Decrease (increase) in refundable deposits 0   (52 ) 13   (1,543 ) Net cash used in investing activities (264 ) (413 ) (8,565 ) (12,464 ) Cash flows from financing activities Proceeds from exercise of employee stock options 84 231 2,615 6,995 Purchase of treasury shares (2,461 ) (1,374 ) (77,497 ) (41,920 ) Treasury shares reissued to employees 2,461 1,374 77,497 41,920 Cash dividend regain from canceled share-based compensation 1   2   27   48   Net cash provided by financing activities 85   233   2,642   7,043   Effect of exchange rate changes on cash and cash equivalents 36 (26 ) (119,691 ) (222 ) Increase in cash and cash equivalents 23,506 19,729 610,567 596,297 Cash and cash equivalents at beginning of period 145,353   116,038   4,600,434   3,459,081   Cash and cash equivalents at end of period 168,859   135,767   5,211,001   4,055,378  

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