D-Link 2009 Q1 Results

2009-04-29

For the first quarter of 2009, D-Link posted a net revenue of NT$6.805bln, down 7.6% over 4Q08, or down 19.9% compared to the year-ago figure, primarily due to continuously tough circumstances in the global economy. Due to price erosion and product mix shifting, gross margin excluding inventory related loss dropped to 27.7% in 1Q09 from 29.5% in 4Q08, or compared to 33.7% in the year-ago quarter. By applying article number 10 of Taiwan’s GAAP, gross margin including inventory provisional loss was 24.6% in 1Q09, down by another 3.5% from 28.1% in 4Q08, or compared to 32.0% of the comparable 2008 quarter. Operating expenses of 31.0% of net revenue were slightly down from 31.2% in the previous quarter, or compared to 28.1% in 1Q08, a result of a smaller sales base in 1Q09, and provisions for credit loss. NT$2.109bln of 1Q09’s operating expenses were trimmed down by NT$186mln or 8.1% QoQ, compared to NT$2.295bln in 4Q08. Operating profit margin shrank to -6.4% from -3.1% in 4Q08, or 3.9% in 1Q08.