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Acer barely returns to profit after three successive quarterly losses

updated 10:27 am EDT, Thu May 8, 2014

Change in fortune stems from Acer improving inventory and costs

Acer has reported a profit after three successive quarters of losses, but only just. After enduring a loss of $254 million in the previous quarter, the computer manufacturer bounced back, defeating its expected NT$1.17 billion ($38 million) loss and achieving a NT$1 million ($37,000) profit, though this still pales against the T$514.55 million ($17.1 million) it reported in the same period last year.

Consolidated revenues for the quarter were NT$76.7 billion ($2.5 billion), giving it an operating income of NT$127 million ($4.2 million) and an earnings per share of NT$0.0004. The company puts the change in fortunes down to the "effective control of inventory and costs, stabilizing gross profit, and other factors."

It has been a turbulent year for the company, with CEO J.T. Wang resigning at the end of last year after poor PC sales compounded its issues. Jim Wong, company president at the time, also stepped down, leaving founder Stan Shih to remove himself from the board of directors and take control of the company. Jason Chen was moved from his position as senior vice president of worldwide sales and manufacturing at Taiwan Semicondoctor Manufacturing Company to the CEO role in January. More recently, Taiwanese officials raided Acer's headquarters and homes of some employees as part of an insider trading investigation, after a number of fund managers sold large quantities of Acer shares on the day before J.T. Wang's resignation.

The company has also released a list of nominees for the board of directors, reports Reuters. Six candidates are listed, including Stan Shih and CEO Jason Chen.

Analysts are largely against the company, with the majority polled rating Acer as either "sell" or "strong sell".




by MacNN Staff

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