06.15.2001
D-Link remains attractive despite setback

• Development: D-Link’s stock fell after the company spokesman disclosed that the company is expecting poor performance in 3Q01.

• Analysis: We estimate that D-link’s 2Q01 revenue would outperform the company target by 14% and we expect 3Q01 will repeat. The company is shipping new Layer 3 switches, which is expected to have 45% in gross margin.

• Primasia View: We believe D-link stock will be weakened by poor TAIEX performance in the short term, however we expect it to strengthen in the long term.

GeorgeWu@Primasia.com +886-[0]2-2547-8872