Acer Q2 2011 results in, reveals $234.3m USD in losses
While Acer knew that this year would be tough, nobody expected the Taiwanese manufacturer to take the huge loss it did.
Acer this Wednesday revealed its second quarter performance for the year with massive losses. The company ended the quarter with a net loss of NT$6.8 billion ($234.3 million USD), which is more than triple of the predicted averages (NT$2.1 billion) from 17 different analysts, according to Bloomberg. The loss is also about twice as large as the average of 6 analysts (NT$3.3 billion) polled by Reuters. For comparison, Acer earned NT$2.65 billion ($91 million USD) in Q2 2010.
As one would expect, Acer chairman J.T. Wang was certainly dissatisfied with the results. He blamed the stagnant European and U.S. economies, slowing PC market and increased company senior severance pay as causes for the higher-than-expected losses during its Q2 2011 period. Worse, Wang informed investors that the company now expects to take another hit in revenue for the upcoming third quarter, which is the exact opposite of his statement in July. As a result, reaching the full-year profit goal could be all but “impossible,” says Bloomberg.
Analyst Andrew Chang of Macquarie predicts a 29 percent drop in Q3 2011 results compared to Q3 2010 due to alack of compelling Acer products in the third quarter. The rumored Acer Ultrabook, however, may be launching within the coming months.
Although this year has been quite dry for the company so far, at least one analyst sees some hope for the manufacturer in the long term should they decide to take advantage of HP’s recent PC hardware spinoff.
“Acer should benefit from HP’s share the most in Europe because it’s the second biggest in consumer space in the region,” said HSBC analyst Jenny Lai.
The Q2 2011 results follow right after the appalling Q1 2011 report, where Acer profits fell 64% compared to Q1 2010.