Corporate Governance
Chairman Message | Board of Directors
 
 

Letters to Shareholders, Customers, Partners and Employees

Dear Shareholders,

2016 was a challenging year for D-Link, with the overall global economy in turmoil. Britain s referendum resulted in the UK exiting the European Union, leaving the global economy in a state of shock. The U.S. market was worse than expected, and the recovery of the Eurozone and Japanese economy remains to be seen. Emerging market currencies continued to weaken due to the strength of the U.S. dollar.

Furthermore, the networking equipment industry remained fiercely competitive, with retailers gradually being replaced by e-commerce channels. Faced with these difficulties, D-Link  has remained committed to innovation and execution. The management team has concentrated on improving the organizational structure and efficiency, and continues to focus  on core markets and businesses, while readjusting their goals to turn loss into profit.

Looking at last year s financial performance, D-Links global consolidated revenue was 22.9 billion NT (13.9 % less than the previous year), gross margin was 26.2% (2 percent higher than the previous year), operating loss was 860 million NT (730 million NT less than the previous years 1.6 billion NT loss), net loss after tax was 950 million NT (920 million NT less  than the previous year), and EPS was -1.5 NT. This was due to D-Link s organization restructuring and adjustments in partner selection.

D-Link was founded over 30 years ago. After last year s restructuring, in addition to our continuing to strive for excellence in the industry, we believe that our true value comes from the quality in our 170 + overseas offices in 60 + countries and the localization of our marketing channels. The creation of the D-Link Partners Team will help us to build our brand equity, integrating the high-quality products of our strategic partners, including commercial platforms  and infrastructure. D-Link will provide even more complete, integrative solutions for global channels, demonstrating our competitiveness to the global market.

On the product side, D-Link has always focused on product innovation, adhering to its own brand as the developmental core. D-Link is aware of its role as an industry leader and role model, and we are actively aligning with international companies to support their ecosystems. D-Link s wireless cameras currently support IFTTT, Amazon Alexa, and Google Assistant. D-Link has also partnered with Microsoft to create Super Wi-Fi to upgrade global Wi-Fi coverage, and launched Omna 180 Cam HD, the first home security camera compatible with Apple HomeKit. Last year, D-Link was lauded by popular American IT magazine PC Magazine for having the best networking products of 2016. The AC5300 Ultra Wi-Fi Router (DIR-895L) received the Outstanding Technology Gold Award in the wireless router category, the HD Wi-Fi Camera (DCS-936L) received the Outstanding Technology Gold Award in the internet camera category, and the worlds first 4T4R AC2600 Wi-Fi Range Extender (DAP-1860) received the Special Recommendation Award in the wireless router category. Winning these three technology awards simultaneously made D-Link notable for having the most nominated and winning networking products.

Looking toward 2017, the overall global economic outlook remains uncertain. D-Link plans to focus on its core goals: brand value and sustainable management. D-Link has adopted three strategies. The first strategy is for the company founders to pass on their legacy and passion for D-Link to the current management team and hone their professional management skills. The second strategy is to drive innovation and brand exposure simultaneously, while also investing in high-value products and solutions based on different market needs. The third strategy is to attract long-term, highyield shareholders to stabilize our long-term sustainable  development.

We would like to thank our shareholders for their trust and support. The management team and all D-Link employees will continue to uphold our business stability, spirit, and sustainable development. We will continue to meet our corporate social responsibilities and strive to achieve our performance goals. Lastly, we wish everyone all the best in health and in life.

 

Chairman

JOHN HSUAN

 

CEO

DOUGLAS HSIAO

 

President

ANNY WEI 


 
 

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