D-Link 2010 Q4 Operation Review

2011-03-04

For the fourth quarter of 2010, D-Link posted net revenue of NT$9.144bln, up by 6.5% compared to 3Q10 and up 3.3% over 4Q09, due mainly to consumer end demand rebounds in Europe and North America plus several telco project wins in emerging markets. Due to product mix shifting towards more broadband sales and less switch contribution, gross margin excluding inventory related gain/loss dropped to 30.8% in 4Q10 from 32.1% in 3Q10, or down by 2.5% compared to 33.3% of the year-ago quarter. In compliance with Taiwan’s GAAP, gross margin including inventory provisional gain/loss was 29.6% in 4Q10, declining by 1.4% from 31.0% in 3Q10, or down by 4.5% compared to 34.1% of the comparable 2009 quarter. Operating expenses of 26.1% of net revenue was substantially down by 2.3% from 28.4% both in the previous quarter and in the year-ago comparable quarter. Operating profit margin was lifted to 3.5% from 2.6% in 3Q10 because of well control in expenses and relatively higher sales base but down by 2.2% as compared to 5.7% in 4Q09.