Realtek continued to grow in 2005, posting a new revenue record. We generated over NT$10 billion for the full year, with monthly revenue exceeding NT$1 billion in the months from August to December. For 2006, we will introduce several compelling products and are confident of continued revenue and net profit growth.
Revenue for 2005 totaled NT $10.6 billion, an increase of 14.2% compared to 2004. Gross profit was NT$4.73 billion, an increase of 22.3%. Net income was approximately NT$1.88 billion, an increase of 11.3%. Return on equity was 10.7%, an increase of 10%. Earnings per share were TWD2.5, an increase of 12.6%.
In March 2006, to meet future operating needs and efficiently integrate internal resources to speed product development, we re-organized our internal divisions. The new organization comprises five main divisions: Communications Network Business Unit, Communications Network Marketing & Sales Division, Computer Peripheral Business Unit, Multi-Media Business Unit, UWB (Ultra-Wide Band) Business Unit.
As a leading supplier in the network communications IC market, we increased design wins for Gigabit Ethernet controllers for PC OEMs. Our high performance products and wide variety of product lines have allowed us to successfully defend our position as a leader in the switching products market. In order to meet the needs of high-speed, low-power, and short-range wireless technology, we successfully developed an Ultra-Wide Band (UWB) PHY based on the WiMedia Alliance PHY specification. During 2005, WLAN IC shipments have shown steady growth. With the rapid growth of the Internet, broadband communications, and wireless applications, we believe our future in all these areas is very bright.
In Computer Peripheral and related products, we strengthened our position as the worlds leading supplier of PC audio codecs and achieved a global market share of 65% in 2005. We have continued to develop a new generation of High Definition Audio (HDA) codecs that deliver advanced multi-streaming high-definition 10-channel audio. Our new HDA VoIP IC, the ALC888T, was awarded the “Technology Innovation Accelerated Award” at the Intel Developers Forum, Spring 2006. In addition, we will introduce our new LCD monitor, Digital TV, and Digital Video Recorder controllers for the fast growing “Digital Home” market.
Our commitment to innovative research and development creates an environment for us to offer IC solutions that provide high performance, low cost, energy efficiency, and reduced size, through our core technologies of digital, analog, and radio frequency (RF) development techniques. In addition, our products meet the Restriction of Hazardous Substances directive (RoHS), which will come into force on 1st July 2006.
To meet challenges from our competitors, we are aggressively honing our R&D skills, speeding development of new technologies, and strengthening our customer service capabilities. We continue to develop communications networking and computer peripheral and multimedia products that satisfy our customer’s demands for innovative technologies and service. We are never satisfied with current accomplishments and will continue expanding our international marketing channels while focusing on the domestic market and technical service support.
We wish to thank you for your support in the past. We appreciate your confidence in us and look forward to your continued support in the future.

Po-Len Yeh, Ph.D.           Sun-Chien Chiu
Chairman                          President