Acer Inc (宏碁) yesterday said it is separating its new and core businesses in a bid to accelerate corporate transformation.
The PC brand said in a statement that its new businesses include Build Your Own Cloud (BYOC) and “smart” products, while its core business focuses on information technology products.
The statement came after it reported annual net income of NT$604 million (US$18.46 million) for last year, down 66.25 percent from NT$1.79 billion a year earlier.
Earnings per share were NT$0.2, compared with NT$0.63 per share in the prior year, the firm said in a filing with the Taiwan Stock Exchange.
Acer said that due to continued efforts to optimize its product portfolio, its gross margin last year improved 0.62 percentage points to 9.4 percent, while its operating margin last year dropped 0.42 percentage points to 0.4 percent.
The company’s board approved a distribution of NT$0.5 cash dividend, suggesting a dividend yield of 4.13 percent based on the firm’s share price of NT$12.1 at the close of trading in Taipei yesterday.
TIRE MAKERS
Meanwhile, tire maker Cheng Shin Rubber Industry Co (正新橡膠) — which produces and markets tires under the Cheng Shin and Maxxis brands — announced it is to establish a subsidary to focus on the sale of its tires in Taiwan.
The new subsidiary is to begin operations on June 1, Cheng Shin said in a stock exchange filing.
The Yuanlin (員林), Changhua County-based company released its financial results for last year, which showed its net income fell to NT$12.78 billion from the previous year’s NT$16.02 billion, partly due to price competition in China and the falling prices of crude oil.
Earnings per share were the lowest in four years last year at NT$3.94, while consolidated revenue fell 9.5 percent year-on-year to NT$116.7 billion.
The company’s board approved plans to distribute a cash dividend of NT$3 per share, which was unchanged for three consecutive years. The cash dividend would translate into a yield of 4.79 percent, based on its closing price of NT$62.6 in Taipei trading yesterday.
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