D-Link 2012 Q1 Operation Review

2012-04-27

For the first quarter 2012, net revenue was NT$8.223 billion, up by 1.1% sequentially and up by 5.4% year over year due to stronger sales through in the emerging and Asia Pacific markets.  Gross margin excluding inventory provisional gain/loss was NT$2.439 billion or 29.7% as compared to 30.6% last quarter due to unfavorable product mix and price competition in the retail market.  Gross margin including inventory provisional gain/loss was NT$2.445 billion or 29.7% in 1Q12, as compared to 30.0% in 4Q11.  Operating expenses were reduced to NT$2.2 billion or 26.8% of net revenue or a 5% reduction from previous quarter in absolute dollar terms due mainly to less marketing related spending as the Company adjusted its channel and marketing strategy.  Operating profit margin increased to 2.9% sequentially from 1.5% in 4Q11.  Net non-operating profit in 1Q12 was NT$77 million comprising of NT$15 million income recognized from long term investee companies under equity method, NT$15 million investment gain, NT$33 million in foreign exchange gain, and NT$14 million derived from financial and other income.  The Group’s first quarter consolidated net income after tax and minority interest was NT$236 million and EPS was NT$0.37 per share based on weighted average capital of NT$6.356 billion.