For the first quarter of 2010, D-Link posted net revenue of NT$7.908bln, an increase of 16.2% from 1Q09, but down 10.7% for 4Q09 due mainly to material shortage. D-Link's revenue for 1Q10, in USD terms, increased significantly by 23.2% YoY, which marks the second consecutive quarter of annual growth over 20%. Despite the challenging market conditions, gross margin excluding inventory related gain/loss continued to increase to 34.7% in 1Q10 from 33.3% in 4Q09, or dramatically up by 7.0% compared to 27.7% of the year-ago quarter due to a better product mix towards more upscale switches and Wi-Fi 11n sales. With the adoption of article ten of Taiwan's GAAP, gross margin including inventory provisional gain/loss was 33.9% in 1Q10, slightly down by 0.1% compared to 34.0% in 4Q09, but significantly up by 9.3% from 24.6% of the comparable 2009 quarter. Operating expenses of 30.0% of net revenue was down by 1.0% compared to 31.9% in 1Q09, but up by 1.7% from 28.3% in the previous quarter due mainly to a smaller sales base in 1Q10. 1Q10's operating expense amount trimmed down by 5.4% to NT$2.375bln from NT$2.511bln because of well controlled administration and R&D expenses. Operating profit margin was 3.9%, a large improvement from -6.4% in 1Q09, but down by 1.8% from 5.7% in 4Q09.