D-Link 2009 Q2 Results

2009-08-05

For the second quarter of 2009, D-Link posted a net revenue of NT$7.025bln, up 3.2% over 1Q09, or down 17.4% compared to the year-ago figure. Due to better product mix shifting towards more switching sales, gross margin excluding inventory related gain/loss rose to 28.9% in 2Q09 from 27.7% in 1Q09, but down by 4.6% compared to 33.5% of the year-ago quarter. By applying article number 10 of Taiwan's GAAP, gross margin including inventory provisional gain/loss was 33.5% in 2Q09, up by 8.9% from 24.6% in 1Q09, or compared to 32.4% of the comparable 2008 quarter. Operating expenses of 31.5% of net revenue was slightly up from 31.0% in the previous quarter, or compared to 29.3% in 2Q08, a result of one-time restructuring fees. NT$2.22bln of 2Q09's operating expenses were trimmed down by NT$273mln or 10.9% YoY, compared to NT$2.493bln in 2Q08. Operating profit margin significantly expanded to 2.0% from -6.4% in 1Q09, or 3.1% in 2Q08.