D-Link 2007 Q4 Results

2008-02-21

For the full year of 2007, pro forma net revenue totaled NT$33.231bln, an 11.2% increase over FY 2006. Gross margin rose to 34.3% as compared to 32.9% of FY 2006. Operating margin slightly declinedmade a slight decline to 6.9%, as compared to 7.6% of FY 2006. Net margin increased to 10.0%, as displaying growth compared to the 8.4% fromof the previous year, due primarily to capital gains from the disposal of Alpha's shares and a major tax write-back plus one-time tax credit. For the fourth quarter of 2007, D-Link posted net revenue of NT$8.886bln, marginally down by 1.3% over 3Q07, or up by by 8.0% compared to the its year-ago figure. Owing Due to relatively higher discounts & and rebates from special promotions launched in Europe, gross margin dropped to 32.6% in 4Q07 from 35.0% in 3Q07, compared to 34.5% in the year-ago comparable quarter. Operating expenses of 27.8% of net revenue were slightly above the 27.4% of from the previous quarter, or compared to 23.2% in 4Q06 due, a result of increased spending on research and development on R&D for the future growth. Operating profit margin shrank to 4.8% from 7.6% in 3Q07, or 11.3% in 4Q06 primarily due to gross margin erosion.