Acer profits likely higher

Investment gains probably bolstered Acer's profit for the fourth quarter. Acer said Nov. 8 that it had sold shares of BenQ Corp (明基電通),the country's largest mobile-phone maker, and expected to record a gain of NT$1.7 billion.

The company also had a gain of NT$699 million from the sale of about 7.45 million shares of Hon Hai Precision Industry Co (鴻海精密), the nation's largest listed company, from Dec. 2 to Jan. 5, according to information Acer released.

Investment gains will continue to account for a substantial share of Acer's net income for the next two years, analysts said, citing the company's guidance on its share-sale schedule.

"Acer may need to diversify its products line to broaden its income source and to lessen its dependence on investment gains," said Tracy Chen, a Taipei-based fund manager at PCA Securities Investment Trust Co, which manages US$3.7 billion in assets.

The fund didn't own Acer shares.