D-Link 2018Q2 Operation Review

2018-08-06

For the second quarter 2018, net revenue was NT$5.204 billion and increase 4.5% from sequential quarter.  The increase in telco projects shipment was the main driver for the sequential sales growth which offset the sluggish retail sales in wireless and digital home products.  Gross margin including inventory provisional gain/loss was 28.5% below that of prior quarter caused by higher inventory provision charge.  Operating income for two consecutive quarters were positive with net operating margin maintained above 1% level.  Net non-operating loss in 2Q18 was -NT$98 million comprising of NT$15 million loss recognized from investee companies under equity method, NT$41 million in foreign exchange loss as a result of the stronger US$, and NT$42 million other loss due to one-time tax charges.  The Group’s second quarter consolidated net loss after tax and non-controlling interest was NT$54 million and EPS -NT$0.08 per share based on weighted average capital of NT$6.42 billion.