Sat, Jul 14, 2012 - Page 13 News List

Acer cuts profit, shipment forecast

EXPECT NOTHING:Despite revenue predicted to fall short of expections, the company’s increase in shipments saw it dethroning Dell Inc as the world’s No. 3 PC vendor

By George Liao  /  Staff Reporter

Share prices of Taiwanese PC brand Acer Inc (宏碁) tumbled 3.02 percent yesterday to their lowest level in 10 months after the company cut its shipment and revenue forecast, citing weaker-than-expected PC demand.

Acer shares fell to NT$28.9 yesterday, under-performing the TAIEX’s 0.37 percent loss.

“Acer’s PC shipments and profit margins have not been as good as we originally expected. Also because of the persistent eurozone debt crisis and the global economic downturn, the company has turned more conservative about outlook for the third quarter and the whole year,” Acer spokesman Henry Wang (汪島雄) said by telephone.

“The company expects [shipments] to grow between zero and 5 percent sequentially in the third quarter,” Wang said.

Annual shipments would be flat or grow 5 percent, he added.

Wang’s comments came after the Chinese-language China Times reported yesterday that Acer halved its shipments target to 5 percent growth year-on-year this year, compared with the 10 percent estimate it made earlier this year, citing an unspecified Acer executive.

This quarter, Acer’s PC shipments would also grow 5 percent quarter-on-quarter at best, or would remain the same from the second quarter, the report said.

Acer also said second-quarter revenue and operating margins would fall short of its expectations, the report added.

Acer’s PC shipments in the second quarter grew 3.6 percent from the same period last year to 9.65 million units, seizing an 11 percent share of the worldwide market, a report released on Thursday by market researcher Gartner Inc said. The growth helped Acer overtake Dell Inc as the world’s No. 3 PC vendor, Gartner said.

When asked if Google’s Nexus 7 poses a threat to Acer’s PC sales, Wang said low prices did not always translate into market advantages, adding the company would keep an eye on how the new tablet fares in the market.

As for Microsoft’s Surface tablet, Wang said the US firm could become another competitor for Acer.

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