D-Link 2003 Annual Report Download - page 6

Two Thousand and Three has been a year in which we fur-
ther strengthened our global business position and rein-
forced our D-Link brand position as one of the world's
leading designers, developers and manufacturers of net-
working, broadband and communication solutions. We are
stronger than ever before, and we are prepared for the next
phase of our Company's growth.
In 2003, the Company aggressively drove record global
consolidated revenue of US $728 million (NT $25.0 billion)
and a net income of US $40 million (NT $1,374 million),
compared to fiscal 2002 US $583.6 million (NT $20.2 bil-
lion) and a net income of US $25 million (NT $868 mil-
lion). Consolidated revenue increased 24% during this year
while growing gross margin to 31.2% overall.
Increased investments in digital home technologies, channel
expansion and global market development with affordable
standard-based products resulted in significant market share
increases. In 2003, we successfully improved earnings 59%
from 2002 and maximized return on equity to 13.5%.
As we move toward the year 2004, the creation of greater
shareholder value continues to be the key driving factor
behind our actions.
Globally Positioned In-Market
The Company gained a distinct advantage in 2003 over our
competition by already being globally positioned in-country
through 87 offices serving more than 100 countries world-
wide. In-market data collection and technology assessments
acquired from in-country D-Link business units allowed the
Company to build global marketplace business plans that
embrace each market individually with standard-based prod-
uct offerings. Since we are already in-market globally in
sales, marketing and support, the Company is better able to
integrate key product initiatives and ideas in harmony
globally.
North American Region
For the year, the North America Region grew 31% and
accounted for 37% of the globally consolidated revenue in
2003. Operating with greater resources than ever before,
the North American region embraced extended responsibil-
ities and provided a leadership role in strategic product
development and product marketing in 2003. In addition
to research and development, sales and marketing services
and regional management for North America, the region
has made significant inroads with emerging technologies
such as wireless, Voice over Internet Protocol (VoIP) and
teleconferencing technologies.
European Region
Following a strategic reorganization, our European business
units drove a steady revenue increase, posting a solid 30%
gain in 2003, and represents 25% of the revenue for the
Company. The European business units also achieved sig-
nificant success with 43% of sales coming from high-speed
wireless sales to the D-Link business community by thread-
ing the new product lines to distribution channels and exist-
ing reseller partners. About 25% of the business in Europe
was earned from European consumers at retail and e-tail
segments.
Letter to
Shareholders
Ken Kao
Chairman and CEO
D-Link Group