Mixed-signal IC and display chip supplier Parade Technologies Ltd (譜瑞) on Thursday said that the work-from-home trend is expected to continue supporting the company’s business in the second half of this year.
Parade expects revenue to rise to between US$135 million and US$149 million this quarter, compared with last quarter’s US$121.54 million, a company statement said.
The guidance suggests that revenue would increase by 11.57 percent to 23.14 percent from the second quarter, as the company is set to gain more orders for its high-speed signal transmission interface and display chips, as well as embedded DisplayPort solutions.
Yuanta Securities Investment Consulting Co (元大投顧) analyst Steve Huang (黃柏璁) said in a note that Parade’s sales guidance for this quarter far exceeds the market’s expectation of a 5 to 10 percent increase quarter-on-quarter.
“The strong momentum is mainly driven by the continual work-from-home demand for notebooks and Chromebooks, as well as the company’s market share gains in panel makers, and the arrival of [the] high season for its key system customer,” he said.
During a conference call on Thursday, Parade said that it is trying to secure more foundry capacity for its products to support strong demand, as the company’s inventory level is lean.
PCIe 4.0 retimers, which are mainly used in data centers, are expected to become one of the company’s main revenue sources next year, as a 16-lane PCIe 4.0 retimer is expected to enter mass production in the second half of this year, while there are other versions in the design process, it said.
Remote working is the new norm, Parade said, adding that it expects notebook and tablet demand to remain healthy in the fourth quarter, and that momentum is likely to extend into next year.
Parade’s consolidated revenue in the second quarter rose 23.57 percent quarter-on-quarter and 34 percent year-on-year to US$121.54 million, higher than the company’s guidance of between US$105 million and US$115 million.
Net income grew to US$28.22 million from US$20.69 million in the first quarter and US$17.57 million the previous year, or earnings per share of US$0.36, the company said.
Parade said gross margin was 44.27 percent last quarter and forecast that it would be 41.5 to 44.5 percent this quarter.
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