Asustek Computer Inc (華碩) and Acer Inc (宏碁) yesterday posted contrasting revenue results for last quarter, with Asustek weaker than expected, while Acer boasted strong sales.
Asustek posted revenue of NT$113.4 billion (US$3.84 billion), a decline of 10 percent annually and 1 percent quarterly, according to the company’s filing with the Taiwan Stock Exchange.
The company missed the forecast it issued in November last year, when it told investors that revenue was expected to increase from the NT$114.47 billion recorded in the third quarter.
Asustek’s annual revenue contracted for a third consecutive year, falling 7.15 percent to NT$433.43 billion, company data showed.
Asustek attributed last quarter’s sluggish sales to its move to reduce shipments of products that have limited room for profit as a way of boosting profitability, but it did not identify the products.
Its PC shipments, including notebooks, accounted for 63 percent of its total revenue in the third quarter of last year, while its smartphone shipments contributed 15 percent, the data showed.
“We are continuing to improve our product and shipment portfolio with the goal of raising Asustek’s operating margin,” spokesman Nick Wu (吳長榮) said by telephone.
The shipment strategy has started to pay off, as shown by an increase in Asustek’s average selling prices, he said.
Asustek expects its operational growth momentum to recover this year, as it is accelerating its delivery of new products to maintain sales momentum in the PC and smartphone markets, Wu said.
Meanwhile, Acer’s revenue grew by 9 percent annually last quarter to NT$67.1 billion.
Sales increased 11 percent from the previous quarter, Acer’s filing with the stock exchange showed.
“A strong fourth quarter demonstrates Acer’s continuous business momentum,” the company said in a news release, attributing the result to the fast-growing gaming products sector, Windows-based commercial notebooks, Chromebooks and its artificial intelligence business.
For the full year, Acer saw a 1.98 percent year-on-year growth in sales to NT$237.33 billion, recovering from the 11.67 percent decline recorded in 2016.
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