Acer Inc (宏碁) posted profits that missed analysts’ estimates after it lost market share to Hewlett-Packard Co and Dell Inc.
First-quarter net income slumped 72.1 percent to NT$331 million (US$11.2 million) from NT$1.18 billion a year earlier, the Taipei-based company said in a statement yesterday.
The average of 15 analyst estimates compiled by Bloomberg was for profit of NT$647 million.
Competition from tablets such as Apple Inc’s iPad and weak sales in Europe prompted Acer to write down US$150 million of inventory last year and spurred market-share losses.
Higher-value laptops, called ultrabooks, and the end of a hard-disk drive shortage may help the company boost sales this quarter.
Consolidated revenue dropped 11.4 percent to NT$113 billion, in line with the NT$113.6 billion average of 18 analyst estimates compiled by Bloomberg. Revenue will climb to NT$123 billion this quarter, according to the estimates.
The company will not pay a dividend for last year’s earnings after posting its first annual loss since at least 1995, it said in a filing to the Taiwan Stock Exchange yesterday.
Acer’s global PC market share fell in the first quarter from a year earlier as shipments dropped 9.2 percent, the largest decline among the top five vendors, researcher Gartner Inc said on April 11. Shipments fell 8.8 percent in Europe, the Middle East and Africa and by 26 percent in the US, Acer’s two largest markets.
Acer is scheduled to hold an investors conference today to offer its sales guidance for the second quarter and for the rest of the year.