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 newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesacerfinancial results

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

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?