D-Link 2012 Q4 Operation Review

2013-03-08

For the fourth quarter 2012, net revenue was NT$8.16 billion, down by 2.5% sequentially but up by 0.3% year over year as limited spending budget was allocated more to smartphone upgrade in the retail market.  Gross margin excluding inventory provisional gain/loss was 29.3% as compared to 30.0% last quarter due to more incentive rebates and seasonal programs aimed to promote sales and reduce inventory.   Gross margin including inventory provisional gain/loss was 30.8% in 4Q12, which improved from both QoQ and YoY perspective.  Operating expenses were 27.4% of net revenue as compared to 26.3% in 3Q12.  For two consecutive quarters, operating profit margin was maintained at 3.3% within the optimal range.  Net non-operating profit in 4Q12 was NT$136 million comprising of NT$79 million income recognized from long term investee companies under equity method, NT$29 million investment gain, NT$8 million in foreign exchange loss, and NT$36 million derived from financial and other income.  The Group’s fourth quarter consolidated net income after tax and minority interest was NT$262 million and EPS was NT$0.41 per share based on weighted average capital of NT$6.338 billion.