Taiwan's Acer swings to loss in second quarter

Aug 24, 2011

Taiwan's leading computer vendor Acer Inc said Wednesday it suffered a loss of Tw$6.8 billion ($236 million) in the three months to June, swinging from a profit of $41.53 million in the previous quarter.

More than half of the loss, or $150 million, came from payments to clear inventory in Europe, the Middle East and Africa, the company said in a statement.

"In Q2 Acer made efforts to further downsize channel inventory due to stagnant European and US economies, and the slow PC market," it said.

"Additionally, the company paid considerably in senior executive severance pay. Consequently, Acer suffered a higher than expected loss in Q2."

The loss compared with a of 3.59 billion Taiwan dollars seen a year earlier, while its revenue tumbled 32 percent year-on-year, the company said.

Gianfranco Lanci, an Italian, resigned as Acer's and president in April after the company's profit in the first quarter hit a six-year low, largely knocked by the brisk demand for Apple's .

In the first half of this year, Acer accumulated $195 million in losses.

Explore further: US newspaper industry revenue fell 2.6 pct in 2013

add to favorites email to friend print save as pdf

Related Stories

Taiwan's Acer to cut 300 Europe jobs after losses

Jun 15, 2011

Taiwan's leading personal computer maker Acer said Wednesday that it plans to cut 300 jobs from its units in Europe following massive losses amid a slow economic recovery in the region.

Acer pledges efforts to rebound amid slowing sales

Apr 01, 2011

(AP) -- Taiwan's Acer Inc. has pledged to meet new challenges in the slowing PC market after it replaced its top executive as sales fall amid competition from tablets and other devices.

Taiwan's AU Optronics sees profit up 54.6 percent

Jul 28, 2010

Taiwan's AU Optronics Corp said Wednesday its net profit in the three months to June jumped 54.6 percent over the previous quarter, partly due to strong demand for high-priced items.

Recommended for you

US venture investments highest since 2001 (Update)

21 hours ago

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

Weibo IPO below expectations, raises $285.6 mn

Apr 17, 2014

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

User comments : 0

More news stories

LinkedIn membership hits 300 million

The career-focused social network LinkedIn announced Friday it has 300 million members, with more than half the total outside the United States.

Researchers uncover likely creator of Bitcoin

The primary author of the celebrated Bitcoin paper, and therefore probable creator of Bitcoin, is most likely Nick Szabo, a blogger and former George Washington University law professor, according to students ...

Impact glass stores biodata for millions of years

(Phys.org) —Bits of plant life encapsulated in molten glass by asteroid and comet impacts millions of years ago give geologists information about climate and life forms on the ancient Earth. Scientists ...