Acer secures modest net profit despite weak demand

Taiwanese corporation Acer has managed to achieve marginal net profits in the second quarter, but it's nothing to shout about.
Written by Charlie Osborne, Contributing Writer

Taiwanese corporation Acer said in a statement Friday it has managed to achieve marginal net profits in the second quarter.

acer q2 results

The personal computer maker secured a net profit of 56 million New Taiwan dollars ($1.87 million) over Q2, despite weak demand for PCs and heavy competition from rival PC and tablet makers, including Lenovo and Apple.

Currently the world's third-largest computer maker, the company also reported a net loss of NT$6.8 billion ($234.3 million) by shipments, more than triple the rate of NT$2.1 billion predicted by 17 different analysts, according to Bloomberg. Reuters analysts predicted a loss of NT$3.3 billion.

Acer put the losses down to corporate restructuring and $150 million dollars written of in stock and inventory. Acer chairman J.T. Wang, no doubt disappointed with the results, suggested the losses were also due to the "stagnant" economies in the U.S. and Europe.

A one-time tax settlement in Europe also impacted the Q2 results, which cost the firm NT$6.79 billion.

Acer said that revenue rose 8.3 percent to NT$110.6 billion, although it expects to take another financial hit in Q3.

However, the Taiwanese company may be able to recoup some losses through the launch of Windows 8. Acer stated:

"Acer will start shipping products for the launch of Microsoft Windows 8 in August and September, [and] therefore anticipates revenues to rebound."

Although Acer CEO has previously claimed that Microsoft's move into the tablet market would cause brands to "take a negative reaction", Acer is still on board to develop and release Windows RT products. An Acer spokeswomen told Computerworld that "Acer plans to incorporate Windows RT into our product roadmap, but we have not yet confirmed the timing of our product launches."

The Taiwan-based manufacturer said in June it planned to release an ARM-based device running Windows RT early next year.

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