06.27.2001
D-Link received new orders

• Development: D-Link received new orders for Layer 3 switches, with new clients including Intel, Fujitsu, and NEC. ODM orders are expected to increase as worldwide network companies look to cut costs.

• Analysis: D-Link has the capability to produce most parts of advanced Layer 3 switches which have a 45% gross margin compared to 15% from the L2 traditional switch.

• Primasia View: The company currently only trades at a P/E 12.2x, but we expect D-Link to have CAGR sales growth of 25.3% between 2000-2004.

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