Our company values the opinions of investors. We regularly engage in dialogues with investors to grasp the major issues of concern to them, and we consider their feedback and our interactions with them in the course of our business operations. Particular channels of communication include: our annual shareholders’ meeting (held once annually); our earnings conference calls (held quarterly); investment forums and conferences hosted by global investment banks such as Merrill Lynch, Morgan Stanley, UBS, Nomura, Citi, HSBC (with regular attendance at 8 to 10 events each year); in person investor meetings (which typically range between 70 and 90 annually) and investor conference calls (which typically range between 60 and 80 annually).
The following is an example of an engagement between our company and investors:
Participants: Investors, analysts or media representatives
Meeting Level: Parade Chairman & CEO Dr. Jack Zhao, Parade VP of Finance Mr. Kuowei Wu and Parade Investor Relation Mr. Yo-Ming Chang
Meeting Format: Earnings Conference Call
Discussion Focus: Financial result, Business Operation and Industry Trend
Interactive content:
Jerry Su (UBS Investment Bank)
Maybe circling back to the second quarter outlook. I think Yo-Ming already provided the revenue guidance range, but can we have some more comments about the outlook for each product line compared with Q1?
Jack Zhao (Parade Chairman & CEO)
Compared with Q1, our Yo-Ming in the announcement, the our 2 TTED chip and those are will be significant increase in the Q2 and Q1 already shipped quite many under production. Q2 will ship a lot more. And the other area might be the PS parts will continue to kind of uptrend even though the overall, the notebook demand will not be as good as we had thought, but still PS parts are continue doing well. We also will ship Q2, we’ll ship some parts outside the PC notebook side, for example, the automotive, we’ll ship more. And yes, those are the few themes.
Jerry Su (UBS Investment Bank)
Okay. Then probably I also want to understand the outlook into the second half because I think, Jack, you previously mentioned that the notebook demand or PC demand seems to be softer than what you have previously expected. So how much visibility do you have into the second half of the year? How should we think of the revenue outlook for second half comparing with the first half?
Jack Zhao (Parade Chairman & CEO)
I would think the in terms of our pure receiving for the second half, it’s healthy and meet our expectation in terms of seasonality. The even though the 2026 and the larger picture of PC demand may not be as good as we had wished. But we do think the second half still will be better than the first half. And for our own business, and we continue to pull in some segment outside the PC area will contribute start to contribute in the 2026. And also the late of 2026, we even have some of redriver parts designed to the data center, the storage side will start to shipping. Those will help on the later of 2026.
James Wey (KGI Securities (Hong Kong) Ltd.)
Okay. I see. So speaking of the data center-related product, I think previous — one of the investors asked around the business from Spectra7. I think if I hear correctly that currently, you are shipping for cables. But can you give us some idea about what’s Parade’s opportunity once the transceiver method move from copper into optical. For example, in the CPO, these product lines, what’s Parade’s opportunity and potential revenue can be coming from?
Jack Zhao (Parade Chairman & CEO)
Those optical things to Parade is a longer-term thing for us. And we are currently more focused on the– in terms of revenue the opportunity is more on the copper cable. And there are 2 areas is driving the cable. One, as we reported and discussed on the Ethernet cable, and it’s relatively easy to understand. There are another category on the data center and now it is getting heated up. Those are the PCIe Gen 6 active cables and that really address the issue that the PCB board with the high-grade, high-speed PCB is getting a lot more expensive. And in some case, PCB in the shortage. So the customer, many data center, the demand to use the cable for high-speed signal and the rest of them just use on the PCB can use more lower-grade PCB board. So that’s another area we’re working on with multiple customers with our PCIe Gen 6, the redriver there. And yes, that’s what we are working on 2 areas. One is those Ethernet, one is the PCIe Gen 6 for later on Gen 7 and those kind of cables.
Vivian Yang (Nomura Securities Co. Ltd.)
My question is regarding the shortage. So other than CPUs, do we see any other components are facing shortage?
Jack Zhao (Parade Chairman & CEO)
Think the shortage on the manufacturing side, I would think — you heard a lot of substrate shortage, Tglass substrate shortage, right? Then in the manufacturing side, you will hear the lead frame has a long lead time and that you may have a test capacity shortage. In terms of components and besides memory, flash, CPU, I think those are the industry focus. It’s less for the other components, but I would think that IC supplier like us, most of them also suffer from the cost increase.