Acer reports net loss in Q4 from trademark write-off

Acer said it sees growth opportunities in tablets and touch-based Windows 8 devices

Taiwanese PC maker Acer reported a net loss in last year's fourth quarter, weighed down by a $US120 million write-off related to its Gateway, eMachines and Packard Bell product brands.

Acer said its fourth quarter loss reached NT$3.37 billion ($116 million), down from a net profit of NT$94 million in the same period a year earlier. Revenue reached NT$101.5 billion, a dip from NT$127.5 billion in the previous year.

In January, Acer announced a write-off from the lost value in its Gateway, eMachines and Packard Bell trademarks, which were acquired by the Taiwanese firm back in 2007 as part of a $710 million deal. Acer has since discontinued the eMachines brand, and plans to refocus its product portfolios under Gateway and Packard Bell.

Excluding the write-off, Acer would have made a net profit of NT$131 million, a year-over-year increase of 39 per cent.

The company reported the net loss as PC shipment growth continues to remain sluggish at a time when tablets and smartphones are in demand among consumers. The changing market has been particularly painful for Acer, with the company reporting back-to-back quarterly net losses in 2011.

Over 80 per cent of the company's revenue comes from desktops and notebooks. But in the coming year, Acer expects its tablets and convertible PCs will increasingly help drive growth, said company executives in a Tuesday earnings call. Acer CEO J.T. Wang said the supply chain for tablets has become mature. In addition, the company has noticed a "sales momentum" behind touch-based Windows 8 products.

For this year, Acer is projecting it will ship 5 million tablets using the Android and Windows 8 operating systems. But the company hopes to exceed that figure, and reach 10 million units.

"We will have a full line of tablets of Windows 8, and also we will have a full line of Android tablets," Wang said. "By the second half (of this year), we will have a very competitive, full range. So you can expect we will be very aggressive in this category."

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesfinancial resultsacer

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?