Parade Technologies Ltd (譜瑞), a leading video display and interface IC supplier, yesterday said sales rose to a record last month, implying the company’s third-quarter sales guidance should be easily achieved.
The fabless IC designer — whose interface solutions are used for digital data to travel at high speed without degradation — is the sole supplier of embedded DisplayPort (eDP) solutions for Apple Inc’s iMac, MacBook and iPad products. Its products are also increasingly being used in non-Apple notebook computers and tablet devices.
Parade’s consolidated sales hit NT$620.16 million (US$20.69 million) last month, up 10.55 percent month-on-month and 67.35 percent year-on-year, the company said in a filing with the Taiwan Stock Exchange. The figure beat the market consensus by 3 percent to 5 percent and Yuanta Securities Corp (元大證券) said Parade could easily meet its sales guidance of between US$57.5 million and US$62.5 million for this quarter, given that it has posted combined sales of US$39.42 million for the past two months.
Analysts expect a potential new iPad launch later this month to drive strong sales growth for Parade this quarter, but some are worried that the introduction of the 5.5-inch iPhone 6 could affect some iPad Mini demand and thus impact on Parade’s eDP orders.
Yuanta analyst Steve Huang (黃柏璁) yesterday said sales would grow continuously next quarter, given the company’s rising eDP penetration rate in notebook computers, new orders from Samsung Display Co and higher average selling prices of its products.
CIMB Securities Ltd agreed, saying that Parade’s core product, eDP timing controller (Tcon), should enter a multi-year growth on expanded adoption and the company would enjoy its “early mover” advantage to command a 50 percent share in this market.
“Notebook eDP Tcon demand could double from 2014 to 2016, as eDP penetration rises from 37 percent in 2014 to 79 percent in 2016,” CIMB analyst Jack Lu (呂志亨) said in a separate note.
Lu said notebook demand should offset the iPad’s potential “cannibalization” by iPhone 6 next year and Parade’s eDP solutions for smartphones and tablets may gain pace in 2016.
In the first eight months of the year, Parade’s cumulative revenue increased 88.03 percent to NT$3.94 billion from the same period last year.
The company’s shares edged down 0.43 percent to end at NT$344.0 yesterday on the GRETAI Securities Market, before the release of last month’s sales figure. The GRETAI index fell 0.1 percent.
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