In This Article:
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Revenue: USD126.23 million for Q1 2025, up 4.08% year-over-year.
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Net Income: USD20.19 million for Q1 2025.
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Earnings Per Share: USD0.25 basic and fully diluted for Q1 2025.
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Gross Profit: USD33.73 million for Q1 2025, up 3.40% year-over-year.
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Q2 2025 Revenue Guidance: Between USD121 million to USD134 million.
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Q2 2025 Gross Margin Guidance: Between 42% to 46%.
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Q2 2025 Operating Expense Guidance: Between USD32 million to USD35 million.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Parade Technologies Ltd (ROCO:4966) reported a year-over-year revenue increase of 4.08% for Q1 2025, reaching USD126.23 million.
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The acquisition of Spectra7 is expected to strengthen Parade's position in high-speed connectivity solutions, particularly in data centers and AI-powered computing.
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Parade's gross profit increased by 3.40% compared to the same quarter last year, indicating improved profitability.
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The company anticipates leveraging Spectra7's cutting-edge technology to expand into high-growth markets such as next-generation consumer electronics.
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Parade's strategic focus on high-speed product lines, including USB4 and PCIe Gen 4, is expected to drive future growth and market share expansion.
Negative Points
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Sequentially, Parade's Q1 2025 revenue decreased by 0.93%, indicating potential short-term challenges.
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The company faces uncertainty due to tariff situations, which could impact demand and financial performance in the near term.
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Pricing pressure remains a concern, particularly in the high-speed interface segment, affecting gross margins.
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The integration of Spectra7 may present challenges, as the acquired company's revenue contribution is currently limited.
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Parade's guidance for Q2 2025 indicates potential flat revenue growth, reflecting ongoing market uncertainties and competitive pressures.
Q & A Highlights
Q: Can you share the product mix for the first quarter and the outlook for the second quarter? A: In Q1, our DP product line was slightly above 35%, our PS or high-speed port line was under 50%, our TC or soft driver was slightly above 10%, and our tTED was lower than 5%. Moving forward, we continue to see strength in our PS product line on the high-speed side, and our integrated solutions are expected to help recover our DP product line. (Ji Zhao, CEO)
Q: How do you see the tariff impact in your second quarter? Is it positive or negative? A: Initially, the tariff situation added uncertainty, but customers are now calmer and looking for long-term solutions. We see some positive impacts in Q2, with customer demand pulling in. However, we remain cautious about the longer-term effects on customer behavior. (Ji Zhao, CEO)