Feeds

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

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

The essential guide to IT transformation

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.