Parade Technologies Investor Presentation

Company Overview

About Parade Technologies, Ltd.

• Founded: 2005
• TPEx IPO: 2011, Stock Code: 4966
• Employees: 750+
• Global Patents: 295+
• Milestones:
  • 2015: Acquisition of Cypress TrueTouch
  • 2020: Acquisition of Fresco Logic
  • 2025: Acquisition of Spectra7
• 2024 Fiscal Year Revenue: USD 504 million

Core Competencies and Strategy

• Expertise in DisplayPort technology and high-speed digital interface transmission.
• Extensive portfolio of high-speed interface products.
• Market leader in DP/eDP timing controllers.
• Diverse solutions for touch screens and integrated display technology.
• Strategic partnerships with leading CPU/GPU suppliers and global tier-1 customers.

ESG Highlights

Board Governance

• Board Independence: 42% independent board members.
• Board Diversity: 1 female independent director, with another joining in October 2025.
• Board Attendance Rate: 96% in 2024.
• Annual Self-Evaluation: Conducted yearly.

Employee and Compliance

• Conflict Minerals Compliance: 100% supplier compliance with 3TG conflict mineral regulations.
• Employee Training: 100% compliance training completed in 2024.
• Anti-Bribery Policy: Implemented.
• Average Training Hours: 44 hours per employee in 2024.
• Compensation and Benefits: Competitive packages for employees.

Environmental Protection

• Safety Indicators: Frequency-Severity Indicator (FSI) of 0.11 in 2024.
• Renewable Energy: 60% of energy used at San Jose HQ is renewable (2024).
• GHG Emissions: Quarterly progress updates on GHG disclosure plan to the board.

Financial Highlights

Q2 2025 Performance (Quarter-over-Quarter)

• Revenue:
  • Q1 2025: USD 126 million
  • Q2 2025: USD 133 million (QoQ Increase: +6%)
• Operating Income:
  • Q1 2025: USD 20 million
  • Q2 2025: USD 23 million (QoQ Increase: +15%)
• Diluted EPS:
  • Q1 2025: USD 0.25
  • Q2 2025: USD 0.29 (QoQ Increase: +16%)

Q2 2025 Performance (Year-over-Year)

• Revenue:
  • Q2 2024: USD 121 million
  • Q2 2025: USD 133 million (YoY Increase: +10%)
• Operating Income:
  • Q2 2024: USD 16 million
  • Q2 2025: USD 23 million (YoY Increase: +46%)
• Diluted EPS:
  • Q2 2024: USD 0.22
  • Q2 2025: USD 0.29 (YoY Increase: +32%)

H1 2025 Performance (Year-over-Year)

• Revenue:
  • H1 2024: USD 242 million
  • H1 2025: USD 260 million (YoY Increase: +7%)
• Operating Income:
  • H1 2024: USD 32 million
  • H1 2025: USD 43 million (YoY Increase: +33%)
• Diluted EPS:
  • H1 2024: USD 0.45
  • H1 2025: USD 0.54 (YoY Increase: +20%)

Outlook & Strategy

Q3 2025 Business Forecast

• Revenue: USD 140 million – USD 154 million
• Gross Margin: 42% - 46%
• Operating Expenses: USD 32 million – USD 35 million

Products & Technologies

Product Portfolio (H1 2025)

• High-Speed Interface (HS I/F): 50%-55%
  • Repeater
  • Jitter Cleaning
  • Converter
• DisplayPort (DP): 33%-38%
  • Embedded DisplayPort Timing Controllers (eDP Tcons)
• Source Drivers (Source Dr.): 10%-15%
  • SIPI Driver
  • iSP Driver
• Touch: 3%-5%
  • Single Touch
  • Multi-Touch

Growth Drivers (2011 - H1 2025)

• DisplayPort (DP)
• High-Speed Interface (HS I/F)
• Touch
• Source Drivers

High-Speed Interface Product Line Updates

• Strong growth momentum in Q2 2025.
• HDMI 2.1 Repeater & Jitter Cleaning: Best solution for HDMI 2.1 design challenges.
• DP 2.0 to HDMI 2.1 Converter: Supports extended HDMI 2.1 connectivity.
• DP 1.4 Retiming Mux/DeMux: For discrete GPUs in gaming/workstation applications.
• USB4 Retimer: Adopted by CPU/GPU suppliers; gaining market share.
• USB4 System-Level Solutions: Including USB4 Retimer, Hub, and Host Controller.
• Spectra7 Drivers:
  • 56Gbps Re-driver in production.
  • 112Gbps under customer consultation. Opportunities for PCIe 6/7 re-drivers due to speed increases.
• Seasonal demand expected in Q3 2025.

Display Solutions Product Line Updates

• Demand remained stable in Q2 2025.
• Innovation strategy to enhance market share through efficient architectures.
  • TED: Tcon-Embedded-Driver
  • tTED: Touch-Tcon-Embedded-Driver (Mass production to begin in Q4 2025)
  • TTcon: Touch-Tcon
  • TSD: Touch Source Driver
• Stable demand for custom eDP-Tcon products in advanced displays.
• Seasonal demand trends for Q3 2025.

Automotive Solutions

• DP/eDP preferred for new Automotive SoCs.
• Transition of display panels from LVDS to eDP/DP for enhanced performance.
• DP 1.4 Retiming Mux + DP to LVDS Converter: Cost-effective solution replacing current FPDLink SerDes.
• DP 1.4 Retiming Mux: Deployed by tier-1 automotive companies.
• Comprehensive solutions for infotainment systems and instrument clusters:
  • eDP Timing Controller
  • Source Driver
  • Touch Controller
  • Regional dimming display panel technologies for enhanced automotive safety.

Automotive Solution Architecture Components

• Application Processor SoC / GPU:
  • Connects with DP Mux/Retimer, USB Retimer, HDMI Retimer, PCIe Retimer/Redriver.
• Automotive Panel: Includes Tcon/SD, Touch Controller, tTED.
• USB Ports: USB Type A, USB Type C.
• Rear Seat HDMI I/O: HDMI supported.
• Accelerator Peripheral Devices (Sensor/ADAS): SoC-based applications.

Key Terms and Concepts

• DisplayPort (DP), eDP (embedded DisplayPort)
• TCON (Timing Controller)
• High-Speed I/F (High-Speed Interface)
• Re-driver, Re-timer, Mux (Multiplexer), DeMux (Demultiplexer)
• Host, Hub, Convertors
• USB4, HDMI 2.1, PCIe 5/6/7
• Automotive SoC, FPDLink SerDes
• TED, tTED, TTcon, TSD
• ESG (Environmental, Social, Governance)
• Frequency-Severity Indicator (FSI)
• GHG Disclosure Schedule (Greenhouse Gas Emissions)

Disclaimer

This presentation includes forward-looking statements regarding anticipated future activities, events, or developments of Parade Technologies. Actual results may substantially differ due to various factors, including market conditions, legal, financial, environmental uncertainties, and changes in governmental policies. Parade Technologies assumes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances.