Taiwan's Acer swings back to profit in Q1

May 08, 2014

Taiwan's struggling personal computer maker Acer said Thursday it had swung back to profit in the first three months to March, ending three consecutive quarterly losses due to better cost and inventory control.

Acer posted a of Tw$1 million ($34,000) in the first quarter, improved from a net loss of Tw$7.63 billion in the fourth quarter last year but down from Tw$515 million in net in the same period last year.

Consolidated revenue fell by 11.4 percent on-quarter and 16.6 percent on-year to Tw$76.72 billion while operating income rose to Tw$127 million thanks to "effective control of inventory and costs, stabilising gross profit and other factors," it said in a statement.

Acer has set up a business restructuring group led by founder Stan Shih, who also returned as chairman and interim president late last year to launch a series of reforms after two top executives quit over the firm's poor performance.

In January, Acer vowed to formulate product strategy, production planning and inventory control with more caution when it posted a third consecutive full-year in 2013 while senior executives have taken voluntary salary cuts of 30 percent from the same month.

Shih founded Acer in 1976 and built it into the world's second largest PC maker in its heyday, and one of the best known Taiwanese brands internationally, before retiring in 2004.

But Acer's fortunes have worsened in recent years as sales have been hit by competition from Apple and other rivals.

In December Shih relinquished his positions of CEO and president to Jason Chen, a former marketing executive at leading microchip maker, Taiwan Semiconductor Manufacturing Co..

He is scheduled to retire as chairman on June 18, the same day as its shareholders meeting, during which his successor will also be elected.

Explore further: Struggling BlackBerry announces new round of layoffs

Related Stories

Taiwan's Acer names new CEO after 3Q losses

Dec 23, 2013

Taiwan's struggling personal computer maker Acer Monday named a new chief executive officer following losses of hundreds of millions of dollars in the third quarter.

Taiwan's Acer looks to Internet trading

Jan 07, 2014

Taiwanese computer maker Acer said Tuesday it has made its first major investment since overhauling its top management late last year, acquiring a 15.6 percent stake in a PChome subsidiary.

Founder faces tough battle on return to Taiwan's Acer

Nov 22, 2013

The founder of Taiwanese personal computer maker Acer has returned as its head to help turn around the firm's fortunes but analysts warn it has a tough fight in its attempts to expand in the mobile device market.

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.

Recommended for you

Charter buying Time Warner Cable in $55.33B deal

35 minutes ago

Charter Communications will spend $55.33 billion to acquire Time Warner Cable in a cash-and-stock deal that would instantly create one of the largest pay-television and broadband operators in the U.S.

Yik Yak's frat-bro founders shrug off growing pains

15 hours ago

The most popular post of all time on Yik Yak is a dirty joke. Less than 2 years old, the Atlanta-based social network is geared mostly toward college students who access and post unsigned announcements through an app on their ...

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.