03.29.2001
D-Link looking ahead to growth in 2Q01

• D-Link's (2332 'You Xun') capacity is fully booked for May and June. The company is planning to outsource some of its products.

• D-Link claims to have received a multi-million US dollar VoIP ODM contract from Clarent, its VoIP partner. Aside from revenue generation, the deal will more importantly help D-Link get a surer foothold in the new emerging VoIP market. We believe D-Link will eventually move from ODM to own brand manufacturing in VoIP.

• We expect revenue in 1Q01 and 2Q01 to come in at around NT$3.1-3.3b and NT$3.5b, respectively. We reiterate our ACCUMULATE recommendation.

BennyLo@Primasia.com +886-[0]2-2547-8869