D-Link 2009 Q3 Results

2009-11-04

For the third quarter of 2009, D-Link posted a net revenue of NT$8.334bln, significantly up 18.6% over 2Q09 due mainly to the combination of demand increase and channel inventory adjustment in emerging markets, and gradual warm-up for end demands in developed countries. Sales, however, were down 3.4% marginally down compared to the year-ago figure. Thank to growing switching sales, gross margin excluding inventory related gain/loss rose to 30.6% in 3Q09 from 28.9%% in 2Q09, but down by 2.1% compared to 32.7% of the year-ago quarter. By applying Article number 10 of Taiwan GAAP, gross margin including inventory provisional gain/loss was 30.9% in 3Q09, down by 2.6% from 33.5% in 2Q09 owing to the much less inventory write-back of NT$21mln in 3Q09 versus significant reversal of NT$325mln in 2Q09, or compared to 31.7% of the comparable 2008 quarter. Operating expenses of 28.6% of net revenue was down by 2.9% from 31.5% in the previous quarter, or compared to 26.5% in 3Q08. Operating profit margin expanded to 2.3% from 2.0% in 2Q09, or compared to 5.2% in 3Q08.