TAIPEI-- Acer Inc., the world's fourth-largest personal computer
maker, said Friday that sliding sales and a write-off of
raw-materials inventory led it to its third consecutive full-year
net loss, making it the hardest hit player in the sluggish PC
sector.
The Taiwanese PC maker has been upended in recent months by the
abrupt departure of two chief executives in succession, who both
failed to stem the company's slide. Acer's founder, Stan Shih, has
returned as acting chairman and is trying to revive the former
laptop leader by turning it toward cloud-computing services.
A new chief executive, Jason Chen, took the helm this month, but
has so far offered few concrete details of how he plans to turn
around Acer's fortunes.
Acer said Friday its fourth-quarter net loss was NT$7.63
billion, more than double the NT$3.69 billion expected by analysts.
Revenue slid 14.6% to NT$86.70 billion from a year earlier, as Acer
lost ground to rivals including Lenovo Group Ltd. and Asustek
Computer Inc. who have pushed more aggressively into new sectors
such as tablets and tablet-laptop hybrids.
Acer's senior executives are taking a 30% voluntary salary cut
starting January, the company said in a statement.
In a sign of the company's struggles, it was the second
consecutive quarter that Acer released its earnings in the evening
with less than two hours prior notice. Taiwanese PC makers
traditionally issue their fourth-quarter earnings during business
hours at investor conferences in March.
Analysts say that Acer relied too heavily on making low-end
laptops, which weakened its brand, while also failing to move
quickly enough into the new mobile sector when it started eating
away at traditional PC sales. While Acer is trying to transform its
business model to a more service-oriented one, analysts caution
that it is far from an easy fix.
"There's no way Acer will break even in the first half of this
year," said Daiwa analyst Steven Tseng. "They can maybe break even
in the second half. Right now their hardware business is in trouble
and they can only push through volume with more aggressive
pricing."
Acer's global PC market share slid to 7.8% in the fourth quarter
from 10.1% a year earlier, while those of Lenovo, Asustek and
Hewlett-Packard Co. climbed, according to market research firm
IDC.
Write to Eva Dou at eva.dou@wsj.com
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