​Acer sees net profit surge as operating income heads south

The Taiwanese giant has continued its profit tumble this quarter, reporting an operating loss of NT$279 million.
Written by Asha Barbaschow, Contributor

Acer 2Q2016 results

Screenshot: Asha Barbaschow/ZDNet

Acer has released its financial results for the second quarter of the year, reporting an operating loss of NT$279 million.

The result comes after the PC maker pulled an NT$866 million operating profit in quarter one.

Revenue for this quarter was NT$56.1 billion, down from NT$60 billion in the same quarter last year. Realised gross profit also saw a 19 percent decrease quarter-on-quarter, coming in at NT$5.4 billion.

The non-operating income of NT$1.05 billion was largely due to foreign exchange gains, Acer said, while net income -- profit after tax -- reached NT$538 million, up from NT$2 million at the same time last year.

"Acer is broadening its business boundaries based on its BeingWare vision, and will add value to PCs and new devices through the combination of hardware, software, and services," the company said in a statement.

"The recent strategic changes in the regrouping of its core and new businesses have been made to address the new evolving needs."

When it comes to geographic breakdown, Europe, Middle East, and Africa (EMEA) was the most profitable region, holding a 37 percent piece of the IT hardware pie. Pan Asia Pacific, which includes Asia Pacific, Japan, Taiwan, Hong Kong, and Mainland China accounted for only 34 percent of global sales, compared with 37 percent year-on-year.

Notebook PCs remained the Taiwanese giant's most popular product, while smartphones accounted for only 1 percent of overall product sales for the quarter. Desktop PCs dropped by one percent to 16 percent.

At Computex earlier this year, Acer unveiled its Liquid Zest Plus, a 5.5-inch smartphone running Android Marshmallow. The smartphone that was released in July has a 5,000mAh battery that the company said can run up to three days without recharge.

It also announced two TravelMate P2 notebooks aimed at the small business sector. The 14-inch and 15.6-inch notebooks are hitting Europe and China this month, and the North America later this year.

Acer suffered a 73.4 percent profit drop for its first quarter, reporting profit after tax of NT$46 million from NT$173 million the year prior, while it posted revenue of NT$56.3 billion representing a drop of 17 percent.

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