Wed, Jan 15, 2014 - Page 13 News List

Acer profits due on senior execs exit: analysts

CHANGE:Yet one analyst said Acer’s dwindling mobile phone sales, lack of design differentiation, and few R&D resources would dog any future strategies

By Helen Ku  /  Staff reporter

Acer Inc (宏碁) could start posting profit as soon as next quarter after it completes restructuring with the departure of more of its senior executives this quarter, analysts said yesterday.

“Given that Acer is still making adjustments to its operating expenses, the company is not expected to post profits until the second quarter of the year at the earliest,” Yuanta Securities Co (元大證券) analyst Vincent Chen (陳豊丰) said in a client note.


The analyst’s remarks came a day after Acer’s newly appointed corporate president and chief executive officer, Jason Chen (陳俊聖), explained the company’s future business strategy to media, saying that the company would focus on cloud-computing technology services.

The world’s fourth-largest PC vendor posted a net profit of NT$13.1 billion (US$437 million) in the third quarter of last year, and analysts forecast the company will go on to post a third annual loss for last year.

Speaking to reporters for the first time since he assumed his position, Jason Chen said on Monday that the company’s new business model is to debut on April 1, when its notebook computers can be supported by the new “build your own cloud (BYOC)” services.


However, Deutsche Bank analyst Andrew Chang (張家福) said Chen’s strategy — a hardware plus software system integration concept — lags “far behind the company’s leading peers, like Apple Inc.”

“Our first impression was not positive, as management did not offer a clear direction, nor strategies of how they intended to make a turnaround,” Chang said in a client note.

Chang said the company’s falling mobile device shipments, lack of differentiation in design, and limited research and development resources would continue to affect its BYOC plans.

“It will also take time and considerable resources for the company to adjust to organizational and channel structure changes, and to communicate those changes with its target customers,” Chang added.

Acer’s shares closed down 0.27 percent at NT$18.4 in Taipei trading yesterday, underperforming the benchmark TAIEX, which fell 0.21 percent.

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