For the third quarter of 2013, D-Link posted net revenue of NT$8.159 bln, up 12.9% from 

sequential quarter. The strengthening local currency in major emerging markets added 

incentive for the channels to restock resulting in stronger pull-in both in retail and projects. 

The upcoming retail season in the developed markets also contributed positively to top line 

performance. Gross margin excluding inventory provisional gain/loss was 27.8% in 3Q13, 

up from 27.0% in prior quarter benefitting from both favorable products mix and the roll out 

of the new generation AC routers with cloud features. Gross margin including inventory 

provisional gain/loss was 27.6% in 3Q13, up from 25.5% in 2Q13. Due to the higher 

revenue base, operating expenses as percent of net revenue was 24.5%, improved from 

27.5% in previous quarter. Operating margin in 3Q13 also hit our target range at 3.1%. 

Net non-operating profit in 3Q13 was NT$166 million comprising of NT$94 million income 

recognized from long term investee companies under equity method, NT$6 million 

investment loss, NT$45 million foreign exchange gain and NT$33 million derived from 2 

financial and other income. The Group reported third quarter consolidated net income 

after tax and minority interest of NT$333 million and EPS was NT$0.55 per share based on 

weighted average capital of NT$6.112 billion.