09.07.2001
D-Link shares torpedoed by Clarent news

• Development: D-Link hit down limit (7% decline) yesterday on news that VoIP (Voice over IP) client Clarent has been barred from trading on the Nasdaq for overstating revenue in the last two quarters.

• Analysis: Clarent accounted for 10% of D-Link’s revenues in 1H01. Company estimates a figure of less than 4% for the full-year. As payment for 1H01 sales has already been received, accounts receivable will not be a problem. No new Clarent orders are expected in 2001. D-Link is already approaching other VoIP manufacturers.

• Primasia View: We do not expect the Clarent issue to have a serious impact on D-Link. We remain positive on 4Q01 outlook and expect revenues to pick up in August. Maintain Outperform.