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Acer hangs on in there

by on07 May 2015


Still in profit

Troubled PC maker Acer surprised everyone by saying that it managed to remain profitable during the last quarter despite a decline of 11.4 percent in revenues.


The company reported a net profit of $5.52 million in the first three months of the year, the fifth consecutive profitable quarter.

In a statement the company said that the results reflect Acer's effective product mix strategy according to market needs, operating expense control and inventory management.

The falling revenues were put down to "seasonal factors" and the company expected revenues to pick up in the high seasons in the next two quarters".

Analysts are not optimistic and were a little surprised Acer managed to do so well.

Vincent Chen of Yuanta Securities Investment Consulting was quoted as saying: "Data from the supply chains show that Acer's shipments may grow 8-9 percent in the second quarter, which is still lower than the 10 percent rise in shipment forecasts industry-wise,".

The company started seeing profits in the first quarter of 2014 following a series of reforms started by founder Stan Shih who returned from retirement to kick bottom-lines.

In its heydey Acer was the world's second largest PC maker and one of the best known Taiwanese brands internationally.

Last June Acer named co-founder George Huang to succeed Shih as chairman.

 

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