Acer back in profit, but barely

Revenue, however, was still down by 17 percent year-over-year

Acer's booth at Computex

Acer's booth at Computex

After three consecutive quarters of net losses, PC maker Acer has reported a profit in this year's first quarter on better control of costs.

The recovery was, however, very small with the company generating NT$1 million (US$33,000) in net profit during the period, Acer said in its earnings report on Thursday.

The first quarter profit was still down from the NT$515 million Acer recorded a year earlier. But it's a positive sign for a company that's been hit hard by the shrinking PC market.

The Taiwanese company, which was best known for its notebooks, was hit as consumers drifted to tablets and smartphones. Microsoft's Windows 8 operating system did not help, and Acer's own products have struggled to re-energize sales.

In response, the company initiated a major overhaul of its business in November, eventually hiring a new CEO and laying off employees to control costs.

Earlier this week, Acer co-founder and Chairman Stan Shih said he was satisfied with the company's new direction, and expected the PC maker to start breaking even soon.

But even as the company reported better earnings in the first quarter, its revenue was NT$76.7 billion, down 16.6 percent year-over-year. In the first quarter, Acer's PC shipments saw a year-over-year decrease of 20 percent, according to research firm IDC.

To generate more revenue, the company is focusing less on PCs and more on mobile devices, including wearables. Last month, Acer unveiled its first smartband called the Liquid Leap, which works with a smartphone to monitor a user's health and fitness information.

The company is also making software and services a centerpiece of its revival. As part of that strategy, Acer wants its products to include a private cloud service on board that consumers can use to store information remotely. Ideally, the company will bundle in paid features into the cloud service as a way to generate additional revenue.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issueshardware systemstabletslaptopsfinancial resultsacer

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?