Parade Technologies Reports Second Quarter 2020 Financial Results
Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading high-speed interface IC supplier, today announced financial results for the second quarter fiscal year 2020 ended June 30, 2020, and provided guidance for the third quarter of fiscal year 2020.
Consolidated revenue was US$121.54 million and consolidated net income was US$28.22 million. Basic and fully diluted after-tax earnings per share ("EPS") were US$0.36 (NT$10.81) and US$0.35 (NT$10.54), respectively. These results compared to consolidated revenue US$90.70 million and consolidated net income of US$17.57 million, or US$0.23 (NT$7.10) and US$0.22 (NT$6.84) per basic and fully diluted share, in the year-ago quarter.
In US dollars, the second quarter of 2020 consolidated revenue increased 23.57% sequentially and was up 34.00% year-over-year.
The gross profit in the second quarter of 2020 was US$53.81 million, representing an increase of 22.57% from the previous quarter and an increase of 41.22% compared to the same quarter of last year.
On May 6, 2020, Parade announced the mass production of the PS8925 PCI Express Gen 4 retimer for enterprise system deployment. The device has completed rigorous testing and validation in enterprise-level network and storage systems now entering production. The PS8925 is a 4-lane device within Parade's family of PCI Express Gen 4 retimer IC products that support up to 16 bi-directional lanes using 32 high-speed data channels operating at 16 Gbps.
On June 2, 2020, Parade announced the completion its acquisition of Fresco Logic, Inc. Parade believes the synergy of Fresco's USB expertise with Parade's proven high-speed data transport experience will greatly benefit Parade's USB4 product integration development. Leveraging the intellectual property portfolio of each company should serve to position Parade as a key supplier of integrated solutions for USB4 host, hub, docking, and device applications. As an established leader in interface devices for USB, PCI Express, and DisplayPort, all of which will now be supported through the high-speed USB4 interface, the acquisition of Fresco Logic presents an evolutionary growth opportunity for Parade.
On June 16, 2020, AIC Inc. and Parade Technologies jointly announced the two companies will align on PCI Express Gen 4 retimer technologies to enable the launch of a pioneering PCI Express Gen 4 appliance. AIC's server hardware, supporting multiple PCI Express Gen 4 slots in a single rackmount chassis, is a flexible and compact extension box accommodating accelerators such as GPUs, NIC, FPGA and NVMe drives. Utilizing Parade's PCI Express Gen 4 retimer chip, AIC's high-density PCI Express Gen 4 appliance provides stable data transport of the doubled data rate of PCI Express Gen 4 at 16 Gbps, compared to 8 Gbps of PCI Express Gen 3. And this partnership provides a gateway for early entry into the PCI Express Gen 4 market for both companies.
On July 14, 2020, Parade announced two new eDP Tcon devices developed for high-performance PC gaming applications along with new complementary LCD source drivers. The new Tcon devices, the DP808 and DP807, enable resolution support up to UHD while providing a fast 120 Hz refresh rate, and even higher refresh rates at lower resolutions. The DP808 and DP807 provide high-speed SIPI™ outputs to the source drivers that drive the LCD display. To support the higher pixel rate capabilities of the DP808 and DP807, Parade has also introduced the TC2082, TC2090, and TC2101 SIPI source drivers.
Based on current business outlook, Parade is providing the following guidance for the third quarter of fiscal 2020:
The financial figures detailed above for the second quarter of 2020 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.
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