Feeds

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

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

Secure remote control for conventional and virtual desktops

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.