In This Article:
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Revenue: USD136.25 million for Q3 2024, up 12.72% sequentially and 16.49% year over year.
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Net Income: USD23.58 million for Q3 2024.
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Earnings Per Share (EPS): USD0.30 basic and fully diluted for Q3 2024.
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Gross Profit: USD57.95 million for Q3 2024, an increase of 13.01% from the previous quarter and 13.24% year over year.
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Q4 2024 Revenue Guidance: USD121 million to USD134 million.
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Q4 2024 Gross Margin Guidance: 42% to 46%.
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Q4 2024 Operating Expense Guidance: USD32 million to USD35 million.
Release Date: October 30, 2024
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 significant year-over-year revenue increase of 16.49% for Q3 2024, reaching USD136.25 million.
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The company introduced several new products, including the PS8353 DP 2.1a linear redriver and the TC1312V device, enhancing their product portfolio in high-speed connectivity and automotive displays.
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The PS9010 USB4 dock controller was launched, offering high-speed, multi-protocol connectivity, which is expected to meet rising market demands.
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Parade Technologies Ltd (ROCO:4966) is seeing strong interest in its PCIe Gen 6 redriver, indicating potential future growth in the server and data center markets.
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The company is optimistic about the growth potential of its USB4 retimer, which is expected to be a significant revenue driver in the coming years.
Negative Points
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Parade Technologies Ltd (ROCO:4966) faces increased competition in the notebook panel market, particularly in the low-end segment, impacting its market position.
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The company's Q4 2024 revenue guidance indicates a potential decline, with expected revenue between USD121 million to USD134 million, lower than Q3 2024.
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The overall PC notebook demand in Q4 2024 is lower than expected, which could affect the company's sales performance.
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There is uncertainty regarding the adoption of Parade's USB4 retimer by Intel, as Intel currently prefers to use its own solutions.
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The company's panel driver IC segment is experiencing pricing pressure, particularly in the Chinese market, which could impact profitability.
Q & A Highlights
Q: Could you update the third quarter revenue breakdown by business? A: In Q3, DisplayPort (DP) accounted for over 40%, high-speed PS products were about 45%, source drivers (TC) were around 10%, and TrueTouch (TT) was less than 5%. - Jack Zhao, President & CEO
Q: Can you update us on the PCIe redriver development timeline for 2025 and 2026? A: We have developed PCIe Gen 6 redrivers and received products with 16, 8, and 4 channels. These products are promising, and we are working with customers for verification. Interest in PCIe Gen 6 redrivers is growing due to lower power and cost. - Jack Zhao, President & CEO