D-Link 2011 Q2 Operation Review

2011-08-26

For the second quarter of 2011, D-Link posted a net revenue of NT$8.021bln, up 2.8% over 1Q10, but down by 2.4% compared to the year-ago figure primarily due to currency fluctuation. If looking at US$ book, 2Q11’s sales remained up by 7.6% YoY. Due to better product mix shifting towards more upscale switches and business class wireless products, gross margin excluding inventory related gain/loss expanded to 33.4% in 2Q11 from 33.0% in 1Q11, and up by 1.2% compared to 32.2% of the year-ago quarter. By applying Article number 10 of Taiwan’s GAAP, gross margin including inventory provisional gain/loss was 33.1% in 2Q11, up by 0.5% from 32.7% in 1Q11, or a substantial improvement of 2.3% compared to 30.8% of the comparable 2010 quarter, benefited from strong execution in inventory management. Operating expenses of 29.0% of net revenue was down from 30.5% in the previous quarter, or compared to 29.1% in 2Q10. Operating profit margin was 4.1%, up by 1.9% from 2.2% in 1Q11, or up by 2.4% compared to 1.7% in 2Q10.