Acer reports Q4 loss, executives agree to salary cut

The company wrote off NT$1.3 billion ($US43 million) related to raw materials inventory and other costs

Acer reported another net loss at NT$7.6 billion ($US251 million) for the fourth quarter, as senior executives at the struggling PC maker agreed to a 30 per cent cut to their salaries.

It's the third consecutive quarter for which Acer has reported a net loss, as the PC market continues to shrink. During the fourth quarter, the company's revenue reached NT$86.7 billion, down from NT$101.5 billion a year earlier.

Part of the fourth quarter net loss was due to a write-off of NT$1.3 billion related to raw materials inventory and other costs, Acer said.

The Taiwanese PC maker, which once rode high on low-price notebook sales, has routinely reported weak earnings in recent years. More consumers are buying smartphones and tablets, taking demand away from consumer PCs, Acer's primary business.

Acer has tried to respond with low-priced tablets, smartphones, and laptops with thin and light designs known as ultrabooks, but competition in mobile devices remains stiff. At the same time, ultrabooks and Microsoft's Windows 8 OS have failed to boost PC sales.

Acer's previous CEO resigned in November. Then last month, the PC maker named Jason Chen, a former executive with the contract chip maker Taiwan Semiconductor Manufacturing Co. as its new president and CEO to revive the business.

The company still hasn't issued too many details on how it intends to turn its fortunes around. So far, the PC maker has said it plans to develop personalized cloud products that will work on its notebooks, tablets, and smartphones. Through the software, users will be able to more easily store and share content between devices, it said.

On Friday, Acer said it made missteps in investing too much in the notebook business, adding that it had originally expected ultrabooks and laptops built with touch screens would perform well in the market.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?