Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Parade Technologies Ltd (ROCO:4966, Financial) reported a significant year-over-year revenue increase of 16.49% for Q3 2024, reaching USD136.25 million.
- 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.
- The PS9010 USB4 dock controller was launched, offering high-speed, multi-protocol connectivity, which is expected to meet rising market demands.
- 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.
- 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
- Parade Technologies Ltd (ROCO:4966) faces increased competition in the notebook panel market, particularly in the low-end segment, impacting its market position.
- The company's Q4 2024 revenue guidance indicates a potential decline, with expected revenue between USD121 million to USD134 million, lower than Q3 2024.
- The overall PC notebook demand in Q4 2024 is lower than expected, which could affect the company's sales performance.
- There is uncertainty regarding the adoption of Parade's USB4 retimer by Intel, as Intel currently prefers to use its own solutions.
- 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
Q: Is there a change in the competition landscape for notebook panels, given the same gross margin guidance for Q4?
A: Competition in the panel segment, especially for notebooks, has increased post-COVID. We are focusing on high-end, integrated solutions, and see interest in touch-enabled panels. Despite high competition, we remain positive about high-end notebook panel integration. - Jack Zhao, President & CEO
Q: What is the addressable market size for the redriver market in data centers compared to the retimer market?
A: The redriver market is attractive due to lower power and cost compared to retimers. Redrivers are in demand for data center applications, especially for cable applications. The exact market size is not specified, but customer interest is high. - Jack Zhao, President & CEO
Q: Can you provide insights into the USB4 market and its potential as a revenue driver?
A: USB4 is becoming dominant with speeds up to 40 Gbps. Our USB4 retimer is a significant revenue contributor and is expected to continue growing. We anticipate USB4 penetration in PCs to reach 30-40% next year, with our products well-positioned in major platforms. - Jack Zhao, President & CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
