D-Link 2010 Q3 Operation Review

2010-10-26

For the third quarter of 2010, D-Link posted a net revenue of NT$8.589bln, up 4.5% over 2Q10, or up 3.1% compared to the year-ago figure. Due to seasonal promotion for back-to-school, gross margin excluding inventory related gain/loss slightly dropped to 32.1% in 3Q10 from 32.2% in 2Q10, but up by 1.5% compared to 30.6% of the year-ago quarter. By applying Article number 10 of Taiwan’s GAAP, gross margin including inventory provisional gain/loss was 31.0% in 3Q10, up by 0.2% from 30.8% in 2Q10, or compared to 30.9% of the comparable 2009 quarter. Operating expenses of 28.4% of net revenue was down by 0.7% from 29.1% in the previous quarter, or compared to 28.6% in 3Q09. Operating profit margin was 2.6%, up by 0.9% from 1.7% in 2Q10, or compared to 2.3% in 3Q09.