D-Link 2001 Annual Report Download - page 4

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Year Two Thousand and One has been another year
of growth in both net sales and profit for the Group.
It has been a year in which we strengthened our
position as one of the world's leading developers
and manufacturers of data networking, broadband
and communication solutions in the small and
medium enterprise sector.
Globally consolidated revenues for Fiscal Year (FY)
2001 grew to an all time high of US$520 million, a
surge of 17 percent over the US$445 million in
Fiscal Year 2000. Net income rose to $28.2 million,
up from $26.6 million last year, an increase of 6
percent. Net income per share was US$0.06,
compared to US$0.072 for the same period last year.
D-Link Group managed to post these spectacular
growth results by successfully executing its vision
and product strategies in a most challenging
economic environment and undaunted competitive
landscape. The events of September 11th, global
economic downturn, cutback of enterprise IT
spending, and continued industry consolidation
created challenges that have never been
experienced before.
Geographically, we continued to penetrate all
major markets. In the US, D-Link wireless
and home gateway products made a splash by
being one of the top 4 vendors in merely a
year's time. D-Link gained even more expo-
sure and visibility in all of the top tier retail
IT stores and market share was greatly
enhanced as a result. In Asia, we made major
progress by being the leading broadband
Customer Premise Equipment (CPE) or Wide
Area Network (WAN) solution provider in the
Japanese market. We continued to win new business
mandates from our blue-chip Japanese Original
Design Manufacturing (ODM) partners. Sales to
Japan grew an astonishing 57% during the year. In
China, it has been another year of fruitful
revenue growth, or 30% Year over Year (YoY).
D-Link Local Area Network (LAN) solutions
continue to beat global competitors and clinched a
number two seat in the Chinese data networking
market. The Group made its first step by pitching
Metro Ethernet technology to help deploy cost-
effective last mile solutions for the Chinese
telecommunication industry.
Product wise, D-Link took advantage of the quick
convergence of voice and data by providing
connectivity solutions over the Ethernet platform.
While the wired LAN solutions continued to be core
product offerings, we also strengthened our wireless
LAN (802.11a, 802.11b and bluetooth), broadband
access (Asynchronous Digital Subscriber Line and
Cable Modems), Voice over Internet Protocol(VoIP),
and residential gateway product lines. Together these
new technologies contributed 35% of FY2001's
revenue and continued to prosper well into FY2002.
Letter tto
Shareholders
2