Taiwan Acer CEO resigns over 3Q widening loss

Nov 05, 2013

J. T. Wang resigned as chairman and CEO of Acer Tuesday as the Taiwanese personal computer maker reported a net third-quarter loss of Tw$13.1 billion ($442.2 million).

Wang's resignation has been approved by the board of directors but he will remain in the chairmanship until the end of his tenure next June, the said in a statement.

"Acer encountered many complicated and harsh challenges in the past few years. With the consecutive poor financial results, it is time for me to hand over the responsibility to a new leadership team to pave the way for a new era," Wang said.

His position as CEO will be filled by president Jim Wong from January, but the company did not say who will become chairman after June.

The company saw its net loss rise from $11.39 million in the second quarter.

Third-quarter revenues dropped 11.8 percent year-on-year to Tw$92.2 billion ($3.1 billion).

The company said the third-quarter resulted from a rise in inventory levels and from one-time compensation payments related to longstanding litigation.

Shipments of Acer's notebooks, tablet PCs and Chromebooks are expected to fall 10 percent in Q4 compared to the third quarter, the company said.

In the face of the tough outlook, Acer has set up a business restructuring group led by founder Stan Shih and co-founder George Huang.

It envisages a seven percent cut in the number of global employees next year.

Explore further: Underfire Uber ramps up rider safety

add to favorites email to friend print save as pdf

Related Stories

Taiwan's Acer swings to profit in Q1

May 07, 2013

Taiwan's leading personal computer maker Acer said Tuesday it swung to profit in the first quarter of 2013 thanks to income from foreign exchange and stock sales.

Taiwan's Acer swings to loss in April-June quarter

Aug 07, 2013

Taiwan's leading personal computer maker Acer on Wednesday reported a net loss of $11.39 million in the April-June quarter mainly due to increasing expenses on investments and declining gross margins.

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.

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.

Recommended for you

Underfire Uber ramps up rider safety

2 hours ago

Uber is ramping up driver background checks and other security measures worldwide after the smartphone-focused car-sharing service was banned in New Delhi following the alleged rape of a passenger.

Sony cancels NKorea parody film release after threats

3 hours ago

Hollywood studio Sony Pictures on Wednesday abruptly canceled the December 25 release date of "The Interview," a parody film which has angered North Korea and triggered chilling threats from hackers.

Sprint accused of billing for unwanted services

7 hours ago

(AP)—Federal regulators are accusing Sprint Corp. of illegally billing its wireless customers hundreds of millions of dollars in charges for text message alerts and other services that they didn't order.

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.