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: Google sets up marketplace to buy patents

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

Capgemini to buy IGATE in $4 billion US expansion push

11 hours ago

French IT services and consulting company Capgemini said Monday it was buying New Jersey-based IGATE for $4 billion (3.7 billion euros), boosting US-generated business to nearly a third of its total activity.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.