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Apr-24-2008Acer's Net Tumbles 48%; PC-Shipment Rise Seen(topic overview)
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Acer added 3.2 percent to NT$65.50 as of 10:05 a.m. on the Taiwan Stock Exchange, the biggest gain since April 16, compared with a 0.4 percent advance by the benchmark Taiex index. The Taipei-based company yesterday posted first-quarter profit of NT$2.95 billion, exceeding estimates for NT$2.84 billion, after it gained market share in the U.S. Chairman J.T. Wang forecast Acer's laptop shipments this year will rise more than its earlier forecast of 40 percent. "The results are fantastic because they did so well in the U.S.,'' Calvin Huang, who rates the stock "buy'' at Daiwa Institute of Research in Taipei, said yesterday after the earnings announcement. "They should continue to outgrow the market and the top five.'' [1] The median of eight analyst estimates compiled by Bloomberg was NT$2.84 billion. Acer today forecast its notebook shipments may climb to as much as 24 million units this year, a 41 percent increase from 2007, on demand in Europe and the U.S. The Taipei-based company also plans to release its first smart phone as early as the fourth quarter, after buying Eten Information Systems Co. last month to expand into the market for handheld devices.[2]
Revenue in the second quarter will be "slightly less'' than in the first, in line with the "normal market trend,'' President Gianfranco Lanci said at a briefing in Taipei. In February, Taipei-based Acer forecast it would sell 30 percent to 35 percent more computers this year, outpacing Gartner Inc.' s prediction for 10.9 percent growth in the industry. The company said it expects to sell 5 million to 7 million low-cost computers this year, including a model that will use Intel Corp.' s Atom processor to be released in June.[2] Acer revised up its 2008 PC shipment target after posting strong results in the first quarter of the year. The world's third-largest PC vendor predicts it will ship between 25 million and 30 million PCs this year, up from a previous target of 25 million, president Gianfranco Lanci said at the company's first-quarter investor's conference in Taipei on Wednesday.[3]
The company's net profit slumped to NT$2.95 billion from NT$5.66 billion last year, but not because business was tough. Last year Acer sold NT$4.34 billion worth of stock in the first quarter that counted toward its net profit figure, compared to just NT$565 million this year.[3] Q1 net profit was down some 48 per cent from T$5.66bn to T$2.95bn ($97 million), or T$1.25 a share, compared to the year earlier, when the firm saw gains from share sales. Acer said the take-over of U.S. computer maker Gateway Inc, which completed in October last year, helped plump up sales in the Americas region to 30 per cent of its total in the first quarter. That's up seven per cent on a year ago.[4] TAIPEI (AFP) — Taiwan's leading personal computer vendor Acer Inc said Wednesday its first quarter net profit fell 47 percent due to a lack of asset sales, that boosted earnings in the previous quarter.[5]
Acer Inc. said first-quarter net profit fell 48% amid lower income from the sale of investments, but the Taiwan company sounded an upbeat.[6]
Acer posted a net profit of 2.95 billion Taiwan dollars (97.36 million US) in the three months to March, down from 5.66 billion dollars a year earlier, with earnings per share dropping to 1.25 dollars from 2.40 dollars.[5] Non-operating profit fell to NT$565 million from NT$4.34 billion a year earlier, when it recorded gains from the sale of shares in Taiwan Semiconductor Manufacturing Co., Hon Hai Precision Industry Co. and Wistron Corp.[2] First-quarter net income dropped 48 percent to NT$2.95 billion ($97 million), or NT$1.25 a share, from a year earlier, when the company had gains from share sales, Acer said today.[2]
Including results of U.S. PC vendor Gateway Inc, which Acer acquired last year, consolidated sales in the first three months were up 28 percent from a year earlier at 127.38 billion dollars.[5] The Taiwan dollar gained 6.7 percent against the U.S. dollar in the first quarter, the best performer among 10 Asian currencies tracked by Bloomberg. Acer said the Gateway acquisition, completed in October, helped increase sales in the Americas region to 30 percent of its total in the first quarter, from 23 percent a year earlier.[2]
Acer Inc today reported a drop in first quarter net profit after one-off investment gains this time last year. The Taiwan-based firm, which now holds the number three spot behind rivals HP and Dell in global shipments, has reason to be cheerful, however, with its recent aggressive expansion showing stable core growth in the first quarter.[4] Around 63 percent of Acer's PC shipments in the first quarter were laptops, continuing the shift away from desktops, said Lanci. He predicted that Acer's revenue in the second quarter will be similar to the first quarter or slightly lower, due to seasonality.[3] Growth may slip a bit in the second quarter to 55 percent because the April-June period is normally the slowest time of year for PC sales, said Lanci.[3] Laptop sales have been particularly strong, running at a nearly 60 percent growth rate in the first quarter.[3]
Laptops reeled in the most sales for the firm at 63 per cent, up one per cent on the same quarter a year earlier.[4] Desktops sales pulled in 17 per cent. According to Reuters, company chairman JT Wang said at a conference today that he expects Acer's laptop shipments to grow more than 40 per cent in 2008, buoyed by brisk demand in emerging markets such as China, Russia, Brazil, and India.[4]
April 24 (Bloomberg) -- Acer Inc., the world's third-largest computer maker, climbed the most in a week in Taipei trading after reporting better-than-expected profit and saying laptop shipments will rise more than earlier forecast.[1] April 23 (Bloomberg) -- Acer Inc., the world's third-largest computer maker, reported profit that fell less than analysts expected after the purchase of Gateway Inc. helped boost its market share.[2] Acer's market share climbed to 9.9 percent during the quarter, from 6.9 percent a year earlier, after buying Irvine, California-based computer maker Gateway.[2]
Notebook computers were the largest contributor to sales at 63 percent, rising from 62 percent a year earlier, while the share from desktops was unchanged at 17 percent.[2]
Acer expects smart phones to account for 10 percent of sales within three years.[2]
Acer posted first-quarter revenue of NT$127.4 billion (US$4.21 billion), up 28 percent compared to the same time last year.[3] E-Ten adds smartphones to Acer's product line. Acer predicts smartphones will become a large portion of its future revenue, as much as 10 percent within the next few years.[3]
The company's revenue and market ranking gained from the purchase of U.S. PC vendor Gateway last year, although it did not provide specific figures.[3] The company's president Gianfranc Lanci said revenue in the second quarter to June may be slightly lower compared to the first-quarter level. "There may be a small decline, but the figures should be pretty similar," he said.[5]
The company saw almost no impact on earnings from a stronger Taiwan dollar against the U.S. currency, Lanci said.[2]
Shares of Acer fell 2.3 percent NT$63.50, before earnings were reported.[2] Fourth-place Lenovo Group had a 6.7 percent share, according to Gartner. Another market research company, IDC, gave Acer a global market share of 9.9 percent compared with Lenovo's 6.9 percent.[5]
"Acer is benefiting from the trend to replace desktop computers with notebooks,'' said Vickie Hsieh, who helps manage $1.4 billion, including shares of Acer, at President Investment Trust Corp. in Taipei.[2]
Without the new regulations, operating profit would have increased 67 percent to NT$3.26 billion, Acer said.[2] Operating profit, or sales minus the cost of goods sold and administrative expenses, climbed 41 percent to NT$2.74 billion, in line with the NT$2.77 billion median of five analyst estimates. Companies in Taiwan on Jan. 1 began implementing rules requiring them to count staff bonuses as an operating expense.[2] Sales gained 28 percent to NT$127.4 billion in the three months ended March 31.[2]
Acer even sees strength in the U.S., where some economists fear a recession is already cutting into growth. [3]
SOURCES
1. Bloomberg.com: Asia
2. Bloomberg.com: Asia
3. PC World - Business Center: Acer Revises up PC Shipment Target After Strong Q1
4. Acer Q1 profits down, revs revved up | Channel Register
5. AFP: Taiwan's Acer first quarter net profit drops
6. Free Preview - WSJ.com
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