Menu
Acer revenue falls in Q2 amid European debt woes

Acer revenue falls in Q2 amid European debt woes

Component costs continued to rise in the second quarter, the company said

Acer, one of the world's top three PC vendors, reported a decline in revenue in the second quarter compared to the first quarter as the value of the euro fell.

The company's preliminary results for the second quarter showed revenue rose 26 percent year-on-year to NT$150.2 billion (US$4.7 billion), but the figure marked a 7 percent decline from the first quarter's NT$162.1 billion. Acer's net profit in the second quarter was NT$3.59 billion.

In a statement, Acer blamed the quarter-on-quarter revenue drop on the decline in the euro's exchange rate. Acer also turned away some less profitable orders for its wares in order to maintain its profit margin, the company said.

Most of Acer's revenue comes from Europe, where sovereign debt worries in Greece, Spain and elsewhere surfaced in the second quarter, sending the euro tumbling in value against other major world currencies. In the first quarter, Europe accounted for 50 percent of Acer's revenue, with 27 percent coming from the U.S. and most of the remainder from the Asia-Pacific region.

The company said component costs also continued to rise during the quarter.

One bright note was the company's net profit, which rose compared to the first quarter's NT$3.29 billion despite the revenue decline, foreign exchange depreciation and rising component costs.

In June, Acer executives said the company had raised PC prices for the first time in five years due to tight component supplies and other reasons, calling it a very rare event in the PC industry.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesacerfinancial results

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.‚Äč

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments