Parade Technologies (4966) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue was $120.87 million, net income $17.58 million, and EPS $0.22, reflecting a 16.02% year-over-year revenue increase and a 0.34% sequential decrease.

• For the six months ended June 30, 2024, revenue was NT$7,724 million, up 24% year-over-year; net income reached NT$1,141 million, a 46% increase.

• Gross profit for Q2 was $51.28 million, up 11.97% year-over-year but down 1.31% sequentially.

• New product launches included PS8830/PS8833 USB4 Thunderbolt 4 Retimers and PS8778 USB4 Gen 3x2 Thunderbolt 4 DP 2.1 Alt Mode Redriver, targeting AI PC and high-speed connectivity markets.

• Earnings per share for the six months were NT$14.31 basic and NT$14.24 diluted, compared to NT$9.94 and NT$9.85 in the prior year.

Financial highlights

• Q2 2024 revenue: $120.87 million; net income: $17.58 million; EPS: $0.22.

• Revenue increased 16.02% year-over-year and decreased 0.34% sequentially.

• Gross profit: $51.28 million, up 11.97% year-over-year, down 1.31% sequentially.

• Cash and cash equivalents increased to NT$10,352 million as of June 30, 2024, from NT$7,010 million a year earlier.

• Total assets reached NT$25,889 million, up from NT$22,119 million as of June 30, 2023.

Outlook and guidance

• Q3 2024 revenue guidance: $130 million–$144 million.

• Gross margin guidance: 42%–46%; operating expense: $32.5 million–$35.5 million.

• Q3 expected to benefit from traditional PC seasonality and AI PC momentum; Q4 expected to be similar, with potential upside from AI PC adoption and holiday demand.

• PC and notebook market expected to see high single-digit growth in 2025, driven by AI PC adoption.

• The company continues to invest in R&D and capital expenditures to support future growth.