The Channel logo

News

By | Paul Kunert 7th May 2013 15:33

Hey, Acer: Is that a rounding error, or did you actually make a profit?

Actually, it was a little financial magic wot won it

Only a foreign exchange tailwind and stock disposal helped ailing Acer return to profit for calendar Q1 of 2013.

The Taiwanese firm booked sales of NT$91.9bn (£2bn) during the period, down more than 18 per cent year-on-year. This was "in line with the original shipment outlook", Acer said in a statement accompanying the numbers.

After two consecutive loss-making years, the early portents for a bumper 2013 don't look great: operating profit from the first three months of the year came in at NT$29m (£632,000) compared to NT$138m (£3m) in Q1 2012.

The accounts were hauled up by a series of one-off influencing factors, ensuring Acer posted profit after tax of NT$515m (£11.2m) for the quarter - still a wafer-thin margin of less than one per cent.

Acer said its profit had been bolstered "due to a number of non-operating incomes during Q1, including foreign exchange and stock disposal gains".

In years gone by, the meteoric rise of the netbook and low-cost notebooks propelled Acer upwards, taking it close to the top of the global PC market, but it was caught out by the Q3 2010 consumer spending slowdown.

A lack of competitive tablet alternatives, certainly none of the Acer-branded slablets are shifting respectable volumes, has hindered its recovery since.

A massive $150m write-down of stock put paid to any Acer profits in 2011 and the write-down of assets related to Acer's sub brands forced it into the red in 2012. ®

comment icon Read 5 comments on this article alert Send corrections

Opinion

Houses of Parliament in night-time

Andrew Orlowski

Come on everybody, let's upload all our stuff into Government by Cloud
Joe Tucci EMC
frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties

Features

Alistair Darling and Alex Salmond debate Scottish independence
You keep the call centres, Hamish, we'll take the banks
Internet of Things
Everyone loves those Things, just not on each others' terms
No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever