parade technologies
TRANSCRIPT
January 5, 2021
Parade Technologies Best solution provider for touch, display and high-speed digital
interface applications
Safe Harbor Notice
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This presentation includes forward-looking statements. All statements,
other than statements of historical facts, that address activities, events
or developments that Parade Technologies Ltd. expects or anticipates
will or may occur in the future (including but not limited to projections,
targets, estimates and business plans) are forward-looking statements.
Parade’s actual results or developments may differ materially from those
indicated by these forward-looking statements as a result of various
factors and uncertainties, including but not limited to price fluctuations,
actual demand, exchange rate fluctuations, market share, competition,
environmental risks, change in legal, financial and regulatory
frameworks, government policies, international economic and financial
market conditions, political risks, cost estimates and other risks and
factors beyond our control.
Parade does not undertake any obligation to publicly update any
forward-looking statement to reflect events or circumstances after the
date on which any such statement is made or to reflect the occurrence
of unanticipated events.
About Parade Technologies, Ltd.
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World’s leading provider of Touch, Display and High-
Speed Digital Interface solutions
Market leader in DP/eDP timing controller
Leading expertise in DisplayPort technology and high-speed digital
interface transmission
Industry’s rich portfolio of high-speed interface product
Rich portfolio of touchscreen and TDDI solutions with the industry’s most
robust noise immunity and wet finger touch performance
Strategic collaboration with leading CPU/GPU vendor and tier-1
global brand end customers
IPO on September 13, 2011 - Taipei Exchange: 4966 Acquire Cypress TrueTouch mobile business on August
1, 2015 ; Acquire Fresco Logic on June 2, 2020
Worldwide 578 employees
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Global Presence
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Korea
(Customer
Support)
Taipei
(Operations,
Sales, R&D,
Customer
Support)
Shanghai
(R&D, Customer
Support)
Hong Kong
(Sales,
Logistics)
Nanjing
(R&D) California
(Headquarters)
Sufficient, Timely and Efficient
Japan
(Customer
Support)
Washington
(R&D)
Ireland
(R&D)
Shenzhen
(Customer
Support)
Beijing
(Customer
Support)
Beaverton
(R&D)
Chongqing
(R&D,
Customer
Support)
Touch Controller Single touch, two-finger touch and
muti-touch for screen size from
1.5~10.1”
TDDI/Flexible AMOLED touch controller
For Smart phone/ Tablet/
Wearables/ E-reader//Industrial
High-Speed I/F
Re-driver/Re-timer/Jitter Cleaning; support DP, USB ,HDMI, PCIe, SATA
DP 1.4a to HDMI 2.0b Convertors; USB Type-C 10Gb/s re-timer; USB Type-
C re-driving switch/with USB-PD Controller; USB 3.2 Hub; Type-C PD
4,16-Channel PCIe 4(16Gb/s) re-timer For PC/ Notebook/ Dasktop/ Tablet/
TV/ Server/ Dongle applications
DP/eDP Tcon eDP v1.2/v1.4 Tcon; support TFT LCD and AMOLED panels, up to 4K resolution TED (Tcon-Embedded Driver);
Supports eDP 1.4b Panel Self-Refresh For Tablet/Notebook/ALL-in-One /Monitor applications
Parade’s Products
Source Driver
Point-to-Point source driver: SIPI / iSP
source driver
For Notebook/Tablet panels
applications
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Product Mix- FY2019
32%~37% 47%~52%
7%~12% 5%~10%
DP
eDP Tcons
High-Speed I/F
Repeater
Jitter Cleaning
Converter
Source Dr.
SIPI
iSP
Touch
Single Touch
Muti –Touch
Data Transmission Move to Higher Speed
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1G LEGACY
10G TODAY
40G TOMORROW
100G NEXT GEN
Jitter and signal degrade
problems will become
significant due to
increasing data rate
USB 2.0 SATA 1.0 PCIe HDMI 1.0
USB 3.1 Gen 2 SATA 3.0 DP 1.2/ eDP 1.3 HDMI 2.0
DP 2.0 Thunderbolt 4
PCIe 4/5 HDMI 2.1 USB 4.0
? High-Speed interface
products will become
important to solve the
Jitter and signal
degrade problem
Higher resolution/ Higher refresh rate/ HDR
– faster speed and higher bandwidth
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HD FHD QHD→4K
1366 X 768
1 Gb/s
1920 X 1080
3 Gb/s
2560 X 1600
8 Gb/s~20Gb/s
Resolution:
Data Rate:
2011 2015
Evolution of DP/eDP- Low power/Higher bandwidth
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DP v1.2a
2012
2014
DP v1.3
2016
DP v1.4
2019
DP v2.0
eDP v1.1
2008
2010
eDP v1.2
eDP v1.3 (PSR)
eDP v1.4 2011
2014
- Added AUX channel commands
to control panel backlight and other
display functions
- Added HBR2 5.4 Gb/s as option
Fast link training by Sink made
mandatory
-Added Partial-Update
Panel Self-Refresh(PSR)
option -Added Display Stream
Compression option
-Added Regional Backlight
Control option
-Added Multi-touch over
AUX options
eDP v1.4 (a/b)
- Addition of specifying
Y-coordinates for
partial frame update
- Refinement to eDP 1.4
standard
- * Automotive leans to
adopt DP similar
standard for their
advanced panel
display
2015
Expansion product portfolio to match
mobile panel evolution and high-speed
data transmission Build up broad Tcons, source drivers, touch
and high-speed I/F solutions portfolio for
different mobile device applications
Address products unique features by leverage
our core technology and innovation
Provide best integrated solution for high-
speed transmission, high-end display,
lower cost, lower power and lower EMI/RFI
Customized solution for target customers Through integrate more functionalities to offer
customers the ability to deliver differentiated
features and user experience to their end-
customers
Continue to cultivate strong relationship
with strategic partners Best performance and production quality
Timely deliver new technology and products
Growth Strategies
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DisplayPort
Technology
SERDES
Technology
Low Power
Low Cost Low EMI/RFI
High Speed/
Bandwidth
Parade
Touch Sensing
Technology
Equalizer/
Jitter Cleaning
Technology
Industry’s most advance products
• Very low power eDP 1.2 v Tcon with Smart-Backlight TM feature
• eDP 1.4b Tcon support PSR2 for lower power, lower BOM cost
• eDP Tcon for AMOLED Panels supports eDP 1.4b for Extended
Battery Life
Leading market share position
• eDP1.4v Tcons have mass production for years and available
supporting low power/higher resolution and high refresh rate
panels and multiple Tcon to Source Driver interfaces
• Demand on PSR Tcon in major OEM and general Notebook
market increased
• Have majority market share in Notebook eDP Tcons
• Secured design-wins with major OEMs
Developing highly integrated solutions for thin-profile
panels
• TED(Tcon embedded driver) solution for thin-profile panel has mass production
Parade in Timing Controller Market
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Advance
Leading
Opportunity
Parade in Source Driver Market
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Notebook/Tablet Panel – Move to higher bandwidth
• While eDP removed the data bottleneck between the GPU
and Tcon, there was still a difficulty for the Tcon output
specially when supporting higher-bandwidth, COG panels
Ability to support high-resolution/high refresh, COG
panels
• With our core high-speed technology and advantages of SIPI interface, SIPI source driver provide advantages over the market existing source drivers
• SIPI source driver will get more benefit when Notebook/ Tablet panel move to higher resolution and high bandwidth demand
SIPI source driver growth well
• eDP v1.2 and eDP v1.4 TCON paired with SIPI source driver has design-in/win with many panel makers and are leading soulations for NB/Tablet panel
High Resolution/
Bandwidth
Ability
Status
DP/USB/HDMI/PCIe has increasing their data
rates • USB Tpye-C goes to 20 Gbps; HDMI 2.1 goes to 12 Gbps
• Strong demand for high-speed interface products to solve
high-speed transmission problems
Market leader in USB Type-C switch and Repeaters
• High-Speed interface products have qualified by Tier-1 OEMs
• Market leader in USB Type-C 10Gb/s re-timer and USB Type-C
re-driving/re-timing switch/with USB-PD Controller
• HDMI 2.0 repeater with Jitter cleaning: market best solution to
solve design challenge of HDMI 2.0
• New DP1.4a to HDMI 2.0b converters may remove jitter during
the protocol conversion process and may support HDR at 4K
• 4 &16-Channel 16 Gb/s PCIe retimer: for server with low power
Acquisition of Fresco Logic on June 2, 2020
• Synergy of Fresco’s USB expertise with Parade’s proven high-
speed data transport experience will position Parade as a key
supplier of integrated solutions for USB4 host, hub, docking and
device applications
Parade in High-Speed Interface Market
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Acquisition
Opportunity
Leading
Parade in Touch Market
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Acquire Cypress’s TrueTouch mobile business
• Purchase price of $100 million
• 90 employees from Cypress. Included R&D, Marketing and Sales
Expands market position in display and touch market
• Own unmatched IP portfolio of hundreds of capacitive touch-sensing patents
• Market-leading touch solutions • Enables roadmap for touch and display integration (tTED)
Developing total solutions for panel maker
• Integrated Touchscreen Controller and Display Driver Solution(TDDI) for Smartphone FHD / FHD+ LTPS in-cell displays has mass production
• Keep developing AMOLED touch and other display/touch integrate solutions (tTED/TSD)
Acquisition
Status
Developing
Revenue
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Revenue (US in millions)
$51
$79
$161
$142
$205
$226
$282
$340 $343
$382
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Annual Financial Performance
Net Revenue
(US$ in millions)
Gross Margin
(% of Net Revenue)
Net Income R&D Expense
(US$ in millions) (US$ in millions)
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$51 $79
$161 $142
$205 $226
$282
$340 $343
$382
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
42.6%
48.0% 51.4%
43.5% 41.3% 40.3% 41.1% 40.5% 41.5% 42.7%
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
$7.1 $10.9
$18.1
$22.6 $24.2
$32.4
$44.4 $45.6
$50.7 $53.6
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
$8.6
$15.4
$43.4
$22.9
$40.5 $36.0
$42.0
$63.6 $65.1
$78.7
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Key Balance Sheet Items
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(in USD thousands) 12/31/2016 12/31/2017 12/31/2018 12/31/2019
Cash and Cash Equivalents 124,987 160,055 195,701 270,380
Account Receivable 47,558 52,272 45,944 39,944
Inventory 26,329 34,275 35,800 31,481
Total Assets 305,674 355,912 391,746 459,393
Shareholders' Equity 232,616 281,533 316,455 375,577
Business Outlook
Based on current business outlook, Parade is providing
the following guidance for the fourth quarter of fiscal
2020:
Revenue: US$135 - 149 Million
Gross margin: 41.5%-44.5%
Operating expense: US$27- 28 Million
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Investment Highlights
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Leading Position in Fast Growing DisplayPort and High-Speed
Interface Markets
Leading expertise in DisplayPort technology and high-speed
digital interface transmission
Technology leader for next-generation display-touch
integration solutions
Own unmatched IP portfolio of hundreds of capacitive touch-
sensing patents New development for the high-speed applications in server
market
Strategic Collaborations with Leading CPU/GPU vendor and
Tier-1 Global Brand End-Customers
Focus on Driving Future Growth and Profitability
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