D-Link 2009 Annual Report Download - page 3

In 2008, we introduced a new management team, and their
presence has been made as they continue to follow
through on executing the goals set for D-Link. In doing so,
we refreshed the look of a number of programs, forming
and maintaining global alliances while bolstering the
relationships of new and current vendors, and of channel
partners. In those efforts, we have worked to continue
controlling expenses, and to consolidate and leverage
resources throughout the organization. As an organization
that truly believes in
Building Networks for People, D-Link
saw the opportunity to showcase its resourcefulness while
providing users with quality products at affordable prices.
D-Link continues to offer the best value proposition for
networking solutions in both business and home
environments, and we have the track record to prove it. It is
worth noting that prior to the economic crisis of 2009
D-Link produced consistent year-to-year revenue growth.
Furthermore, we have continued to expand our presence
throughout the world, and we are confident that the
Company’s revenue will return to a healthy state as soon as
the world’s economy does.
According to Gartner, one of the world’s leading industry
analyst firms, D-Link retained its position as the worldwide
leader of shipments of Ethernet small enterprise switch
ports in 2009 with over 13 million ports shipped for a 31%
market share.* In the same year, we claimed the second
highest position in worldwide shipments of switch ports for
medium-to-large enterprises with 47 million ports shipped
for roughly an 18% market share. In 2009, D-Link also held
the lead position in Wireless LAN Stand-Alone Access Points
in Unit Shipments in both “Small-Enterprise” and “Midsize-
and Large-Enterprise” market segments.
In regards to the Consumer segment, D-Link has held a
strong position in networking for years. As consumers adopt
more applications with their Internet connection, we have
begun to unleash a new line of products to satisfy their
needs, providing great performance and convenience. The
DIR-685, which has continued to win a number of awards
and recognition from the public, is just one of the products
for our consumers to benefit from.
Another strength that D-Link continues to bolster is the
number of efficient devices for our Green product lines. At
D-Link, we believe that being a world leader also means
being a responsible one. As the first networking brand to
offer Green networking, we have expanded our
energy-saving innovations, and have incorporated them in
most of our product lines. Our strict standards for Green
compliance include incorporating energy-saving
technology, meeting government-regulated standards such
as WEEE, RoHS, and ENERGY STAR, and using eco-friendly
sustainable packaging, which includes the use of sleeveless
designs, recyclable cardboard trays, and soy ink.
FINANCIAL UPDATE
The economic recession resulted in the Company
accumulating a total net revenue of NT$31.016 billion in
2009, which was down by 6.0 percent compared to
NT$32.992 billion of the previous year. Gross margin
including inventory provisional gain/loss was 31.0 percent,
slightly down by 0.2 percent from 31.2 percent in 2008,
mainly from pricing competition caused by the global
recession. If it were not for the inventory management in
2009, the gross margin could have further dropped.
Although this was the first year that D-Link did not post
positive percentage growth with regard to net revenue,
there are still signs of potential in the future as we move out
of the recession.
Although operating expenses of 29.7 percent of net revenue
went up from 28.7 percent in 2008, the expense amount was
trimmed down to NT$9.222 billion, a 2.5% decrease when
compared to NT$ 9.459 billion of the previous year.
2009 was a year full of unique challenges as D-Link, and the rest of the world, still faced the
impact of one of the greatest economic downturns in history. The state of the global economy
affected everyone, yet through the outstanding work of D-Link’s most important assets, our
employees and leadership team, we were able to exceed our goals.
JOHN LEE
Chairman
D-Link Group
TONY TSAO
Chief Executive Officer
D-Link Group
Letter to Shareholders, Customers,
Partners, and Employees
02 | D-Link Corporation | Annual Report 2009