D-Link 2006 Annual Report Download - page 14

As one of the top three broadband equipment suppliers
in these emerging markets, D-Link is well positioned for
continued growth in this region.
Broadband Subscriptions Russia
Case Study – Turtle Nest Inn
Turtle Nest Inn on Grand Cayman Island needed to replace their PBX system in order to bring costs down and allow on-site staff to
configure the PBX themselves. The owners knew the cost savings of an IP system would be significant, but they were also attracted by
the flexibility. The Inn needed local and long distance capabilities (mostly outgoing long distance) for eight guest apartments, a laundry
facility, the lobby, and the owner's apartment.
Turtle Nest Inn replaced their PBX with a D-Link DVX-1000 IP PBX system. They estimate that the switchover will save them
$10,000 per year. Plus, D-Link equipment allowed them to set up the system and change configurations without having to call for
any support. In fact, co-owner Alain Beiner, who has experience with networking equipment, set up the system by himself.
"It was pretty easy actually," said Beiner. "My background is in networks rather than phone systems, but it was easy to understand."
More than 50 percent of D-Link's total revenue during 2006 was generated from the lucrative Emerging Markets and APAC where the company continues to enjoy a
strong leadership role in network connectivity. D-Link has experienced double-digit growth
over the past several years, driven by strong demand for D-Link switch, broadband and
WLAN products needed for local economic expansion and infrastructure development.
D-Link has established its brand worldwide for 20 years, including in these budding
markets, and continues to benefit from its vision and investments. D-Link attributes its
expanding sales channels and growing presence to persistent investment in local corporate
infrastructure and close working relationships with local partners. These solid relationships
with key distributors and resultant strong sales networks have allowed D-Link to tap into
leading companies and key government agencies that provide communications services in
these developing areas.
Going forward, the company has reasons to believe that D-Link is well positioned to fuel
and take advantage of these positive trends in the emerging markets and APAC regions.
In-Stat predicts two trends favoring the telecom market where growth will exceed US$50
billion by 2008. D-Link's Emerging and APAC market growth is being driven in large part
by the telecom equipment market. In-Stat also expects home network growth to rise by
more than 20 percent by 2010. This growth is being attributed to non-PC uses for home
networks, which is opening additional opportunities.
With such great market demand for its networking products from both consumers and
business, and with a large and expanding presence in the vast region, D-Link expects
revenue will continue its strong double-digit pace of growth in these areas due to the local
economic growth and the company’s continued competitiveness as a result of its
increasingly sophisticated presence. D-Link has progressively penetrated into Japan by
partnering with local system integrators to provide customized solutions to a series of
vertical market sectors. Given the fact that Japan is the second largest networking market in
the world, D-Link's growing presence in Japan promises great sales potential in the future.
D-Link 2006 Annual Report 11
Notable Accolades
Taiwan wins PC Office Editors’
Choice for the DSM-120
D-Link China Wins Editors’ Choice
Award from Popular Computer Week
for the DI-504 Router
Taiwan Wins Golden Rhino
Awards in Switching and Cabling
D-Link Japan Wins Interop Best of
Show Award for the xStack
DGS-3400 Series.