Acer Inc. (TWSE: 2353) announced today the financial results for fiscal 2016 and the fourth quarter ended December 31, 2016, following approval by its Board of Directors.
Acer reported 2016 consolidated revenues of NT$232.72 billion (US$7.21 billion), down 11.8% year-on-year (YoY); gross profits of NT$23.21 billion (US$719.12 million) with 10% margin; and operating income of NT$1.19 billion (US$ 36.94 million), up 27.1% YoY. Reflecting the intangible asset impairment charge of NT$6.36 billion (US$197.16 million) announced in December, Acer also reported loss after tax (net loss) of NT$4.9 billion (US$151.81 million) and loss per share of NT$1.62, which did not impact its operations and cash.
Excluding the impairment charge, the 2016 pro-forma net income (or profits after tax) would be NT$1.46 billion (US$ 45.35 million) with earnings per share of NT$0.48. Hence, the Board also approved the distribution of cash to shareholders of NT$0.50 per share from its capital surplus. Acer has continued to maintain a healthy gross profit margin of 10% in 2016 along with an effective product mix strategy for different market segment needs.
For the fourth quarter, Acer reported consolidated revenues of NT$61.65 billion (US$ 1.91 billion), gross profits of NT$5.56 billion (US$172.36 million) with 9% margin, operating income of NT$133 million (US$ 4.13 million) with 0.2% margin; with net loss of NT$5.73 billion (US$177.63 million) and loss per share of NT$1.89 to reflect the impairment charge. However, the pro-forma net income would be NT$631 million (US$19.54 million) with earnings per share of NT$0.21.
Separately, the Board approved the nomination of four independent directors for election at the next shareholders’ meeting to be held on June 21 in Taipei. The nominees are: Dr. Ji-Ren Lee, Professor of International Business at National Taiwan University, and Dr. F.C. Tseng, Vice Chairman of TSMC, for an extended term. New nominees are Dr. Simon Chang, Chairman of Taiwan Mobile Foundation and former Premier of the Executive Yuan, Taiwan, and Dr. Charles Hsu, Chairman of eMemory Technology Inc. and former Chairman of the Research Institute of Electronics Engineering at Taiwan’s National Tsing-Hua University.
Note: The spot rate as of December 2016 was used: US$1: NT$32.279.