Feeds

Misery at Acer: 'Breaking even this year is impossible'

Pile 'em high and, well, leave 'em there for now

Top 5 reasons to deploy VMware with Tegile

Acer has announced its first-ever quarterly loss as a veritable vortex of inventory backlogs, internal reshuffling, sluggish PC demand and runaway iPad popularity chewed through its profits.

The Taiwanese firm's Q2 loss after tax was NT$6.8bn ($236m), according to its preliminary results, which came from "$150m in sales allowance to clear channel inventory in EMEA, $30m for cost of EMEA reorganisation, inventory clear-up due to sluggish economic situation, and senior executive severance pay".

The troubles started for netbook giant Acer with the arrival and subsequent soaring popularity of tablets, particularly the iPad. Falling revenues prompted the acrimonious departure of its CEO Gianfranco Lanci in March this year, after he disagreed with the board over the future direction of the company.

Acer's chairman, JT Wang, who took over from Lanci, said at the time that the firm would be "stepping into the new mobile device market, where we will invest cautiously and aim to become one of the leading players".

So far the strategy has yet to pay off, as Wang told an investor conference today that the worsening environment in Europe and the ongoing efforts at restructuring would continue to cost the company this year, according to Reuters.

"Today I have to say – trying to break even this year becomes impossible," Wang said.

Here in the UK, the firm is doing particularly badly, with shipments falling 45 per cent, pushing Acer into the number three spot in the UK market behind HP and Dell, according to Gartner. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.