Q2 2026 Parade Technologies Ltd Earnings Call Transcript
Key Points
- Q2 2026 revenue increased 6.61% sequentially, with strong growth in the integrated TTED device segment, which exceeded expectations and is expanding into new markets.
- The TTED device, which integrates TCON, driver, and touch, is gaining rapid adoption with no significant competition, and shipment forecasts for 2026 have been raised above 5 million units.
- The ASIC-like project is progressing well, with two complex chips expected to tape out late this quarter, and revenue contribution anticipated in late 2027, with increasing customer confidence.
- The company is seeing promising results in the data center ACC cable market, with successful plug tests for 224G Ethernet cables and strong feedback from key cable customers.
- The automotive segment is benefiting from increased EV sales, with new DP hub products starting mass production in Q4 and a target to grow auto revenue to $50 million in a couple of years.
- Management expects Q3 2026 revenue to grow sequentially, driven by traditional notebook seasonality and continued TTED growth, with a positive outlook for 2027 PC shipments.
- Gross margin in Q2 2026 declined year-over-year due to multiple OSAT price increases, which have pressured profitability and required cost-sharing negotiations with customers.
- The company faces ongoing cost pressures from rising DRAM and storage prices, which have suppressed demand, particularly in the gaming notebook segment, and could impact Q4 outlook.
- Management noted that Q2 gross margin may be the trough for the year, but recovery is uncertain and depends on successful price adjustments and cost-saving measures.
- The ASIC-like business carries execution risks, as the chips are large and complex, and revenue contribution is not expected until late 2027, with margins only expected to be in line with corporate average.
- The data center cable business has not yet provided clear revenue guidance, and the timeline for meaningful contribution remains uncertain, with the company still familiarizing itself with the acquired ACC technology.
- The overall PC market in 2026 has been challenging due to memory price hikes and CPU shortages, leading to a subdued demand environment that could persist into 2027.
(interpreted) Welcome, everyone, to Parade Technologies Limited's 2026 second-quarter webcast investor conference. Investor Relations of Parade Technologies, Mr. Yo-Ming Chang, will present 2026 second-quarter financial result first. (Operator Instructions)
And after the presentation, there will be a question-and-answer session in English by CEO, Dr. Jack Zhao; and Vice President of Finance, Mr. Kuowei Wu. And we also will remain last 15 minutes for the attendees who would like to ask questions in Chinese. (Operator Instructions)
(interpreted) And now, I would like to introduce Mr. Yo-Ming Chang, Investor Relations of Parade Technologies. Mr. Chang, please begin.
(interpreted) Thanks, Jason. Welcome, everyone, to Parade Technologies 2026 Q2 webcast investor conference. Parade Technologies' second-quarter 2026 consolidated revenue was USD134.48 million, and the net income was USD18.78 million. Its both fast and fully dilute after tax earnings per share
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