Acer earns slim profit in second quarter, readying for the launch of Windows 10
Taiwanese computer maker Acer Inc. reported a slim profit for the second quarter of 2015, bracing for delayed purchases prior to the launch of the Windows 10 operating system by adjusting its product strategy and cutting costs.
The New Taipei-based manufacturer reported net income of NT$2 million (US$79,000) for the AprilJune quarter and earnings per share (EPS) of NT$0.0008.
Operating income was NT$890 million during the second quarter on consolidated revenue of NT$60.2 billion, which decreased 11.4 percent from the previous quarter.
Acer said its second-quarter operating margin of 1.48 percent improved significantly from 0.45 percent in the first quarter, reflecting the company’s effective revival plans.
The rising operating and gross margins reflect Acer’s focus on value creation and an optimized product mix strategy; while the effective expense control also positively impacted the overall profitability and stabilized operations, he PC maker said in a statement.
However, Acer admitted that its lower-than expected net income in the April-June quarter was impacted by non-operating factors, including foreign exchange volatility.
In the first six months of 2015, Acer’s consolidated revenue fell 18.9 percent year- on- year to NT$128.15 billion, reflecting delayed PC purchases as customers waited for Windows 10. The touchfriendly operatin system was released on July 29.
Acer’s operating income reached NT$1.19 billion in the first half of 2015 with operating margin of 0.93 percent. Its net income was NT$176 million and EPS was NT$0.06 between January and June.
Acer shares fell 0.35 percent to close at NT$12.75 on the Taiwan Stock Exchange prior to its earnings announcement.