Acer confident of Q1 profits despite sales revenue drop


CNA

TAIPEI — Taiwanese PC maker Acer Inc. will make a profit in the first quarter of this year as it has completed key management reshuffles in 2011, company chairman J.T. Wang said yesterday.

“I’m quite confident that we will make a profit in the first quarter, although our sales revenue might drop slightly,” Wang told a media briefing when he visited the home of Acer founder Stan Shih.

He said that for the past nine months, Acer has put a lot of effort into reducing inventory in retail channels and collecting accounts receivable, and the company’s operation now has fewer burdens, thanks to the two major management reshuffles in April and November last year.

Speaking on Acer’s operations in the second quarter, Wang said he is not too optimistic about the traditionally slow season for electronics.

He noted that Microsoft Corp.’s Windows 8 software will not launch during the April-June period, so that consumers might delay their purchasing plans until the second half of this year.

However, given that there are fewer working days and continued disruption in hard disk supplies in the first quarter, revenue in the second quarter is expected to be better than the first, due to a lower base period, he said.

Wang added that the hard drive supply situation will not return to normal levels until the third quarter, but he said Acer’s notebook shipments will increase steadily from February.

In terms of market positioning, Wang said Acer still holds about 20 percent of the European PC market share. He also said that the company will put more efforts this year into emerging markets such as Brazil, India, Indonesia and China.