Acer Inc. Q2 2011 preliminary financial results:
TAIPEI, TAIWAN (August 24, 2011) – Acer Inc. announces the preliminary financial results for Q2 2011. Consolidated revenue was NT$102.1B (US$3.5B), down 32% year-on-year (YOY), operating loss was NT$7.1B (US$246M), profit after tax (PAT) was -NT$6.8B (-US$236M) and earnings per share (EPS) was -NT$2.57. The Q2 loss accounts for US$150 million in sales allowance to clear channel inventory in EMEA, US$30 million for cost of EMEA reorganization, inventory clear-up due to sluggish economic situation, and senior executive severance pay.
For first half (1H) 2011 preliminary results, Acer's consolidated revenue was NT$229.9B (US$8.0B), declining 26% YOY. Operating loss was NT$5.2B (US$179M) due to unfavorable internal and external impacts on company in Q2. PAT was -NT$5.6B (-US$195M) and EPS was -NT$2.12.
Under a new strategy, Acer's business model is changing from monitoring product sell-in only to include the final product sell-through, which means to keep closer watch on the market end for better total inventory control. In Q2 Acer made efforts to further downsize channel inventory due to stagnant European and US economies, and the slow PC market. Additionally, the company paid considerably in senior executive severance pay. Consequently, Acer suffered higher than expected loss in Q2.
In Q3 2011, Acer expects revenue growth and improved gross margin quarter-on-quarter (QOQ). As for Q4 2011, Acer anticipates a stable business operation and better gross margin from Q3.