Mon, Oct 14, 2013 - Page 13 News List

Acer’s revenue drops by 19.26% year-on-year

PC PLUNGE:The weakness was in line with two market tracker’s reports that found it was one of the two vendors performing the weakest, despite shifting to tablets

By Kevin Chen  /  Staff reporter

PC brand Acer Inc (宏碁) on Friday reported a 19.26 percent decrease year-on-year in revenue for last month, larger than the 13.77 percent year-on-year plunge in August, as the company continued losing market share with declining shipments.

Revenue was NT$32.97 billion (US$1.12 billion) last month, compared with NT$40.83 billion a year earlier, but up 7.52 percent from the NT$30.66 billion recorded the previous month, the company said in a filing to the Taiwan Stock Exchange.

Last month’s result was the highest monthly level in the past three months and last quarter’s NT$92.18 billion in sales represented a 2.98 percent increase from the NT$89.51 billion recorded in the previous quarter.

However, that remained 11.75 percent lower than the NT$104.45 billion made a year earlier, company data showed.

Acer did not elaborate on its latest result in the filing. Nevertheless, its weak performance was in line with two market trackers’ industry reports released on Wednesday that the company was one of the two PC vendors showing the worst performance in the quarter, with cross-town rival Asustek Computer Inc (華碩) being the other.

In the three months ending on Monday last week, Gartner Inc said Acer saw its PC shipments decline 22.6 percent year-on-year to 6.67 million units, while data compiled by the International Data Corp showed that Acer suffered a 34.5 percent annual decline in shipments to 5.48 million units last quarter.

Despite the firm’s increasing focus on tablets to buffer the weakening PC demand, Acer risks reporting a second straight quarter of operating loss last quarter following an operating loss of NT$613 million the previous quarter, Credit Suisse analyst Thompson Wu (武光明) said in a note on Friday.

In the first nine months of the year, Acer’s revenue totaled NT$273.49 billion, down 16.64 percent year-on-year, the filing showed.

Shares of Acer have dropped 22.62 percent since the beginning of the year, underperforming a 3.09 percent increase of other bellwether electronics stocks over the same period, Taiwan Stock Exchange data showed.

Acer ended 1.76 percent lower at NT$19.5 on Friday.

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