Acer reports Q3 net profit well below estimatesOctober 22, 2012 - 15:01 AMT PanARMENIAN.Net - Taiwanese PC maker Acer Inc reported third quarter net profit of T$68 million ($2.32 million), well below estimates, according to Reuters. The company did not explain why its profit undershot expectations so dramatically, but said it would hold a briefing this week to give more details of the earnings and its outlook. One analyst said the figure was likely to be the result of foreign exchange losses and higher tax rates, which may continue to impact the fourth quarter. "The lower-than-expected net profit was due to a forex loss of over T$100 million and a higher tax rate at 34 percent; previous guidance was around 20 percent," said KGI Securities analyst Angela Hsiang, citing her conversation with the company. In the previous quarter Acer also reported profit far below forecasts, which it attributed to a one-off tax issue. One year ago, the company posted a worse-than-expected net loss as it struggled with stiff competition from tablet PCs and the effects of a restructuring. Acer warned in August that growth in the PC industry could slow. Worldwide shipments of personal computers fell over 8 percent in the third quarter compared to a year earlier to 87.5 million, the steepest decline since 2001, Gartner analysts said. Acer's Q3 profit was slightly up from net profit of T$56 million in the second quarter. In the third quarter of 2011 it made a net loss of T$$1.1 billion. Consolidated revenue in the third quarter was T$104.4 billion, down 5.6 percent compared to the second quarter but up 11.4 percent from a year ago. In January to September, total revenue dropped 5.7 percent compared to a year ago. Acer shares closed down 0.92 percent before the results were announced, versus the broader market's 0.48 percent decline. Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | Russia provides info about arrested Armenian ex-MP Russian law enforcement agencies have provided information about the arrest of Tigran Urikhanyan. Lemkin Institue slams Pashinyan's “cryptic engagement with Genocide denial” The Lemkin Institute is alarmed over Pashinyan’s statements “questioning Armenia's legal basis to pursue justice against Turkey”. 41 detained as antigovernment protests continue in Yerevan 41 people were detained in Yerevan as people demanding Pashinian’s resignation stage campaigns of civil disobedience. Armenia votes for UN resolution granting Palestine new rights The U.N. General Assembly voted by a wide margin on May 10 to grant new “rights and privileges” to Palestine. |