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Acer revenues recover reluctantly

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Acer has posted a profit for the first time since Q1 2011, although sales revenue continues to fall.

Acer Logo
Acer Logo

Acer has returned to profit after two quarters of back-to-back losses, posting a net income of NT$75 million ($2.5 million) in Q4 2011. Although Acer has avoided a loss this quarter, weak sales have led to a sixth straight quarterly revenue decline. Dwindling interest in netbooks, hard drive shortages, and the continued growth of the tablet market have all been cited as reasons for the company's troubles. 2011 has been a difficult year for the Taiwanese manufacturer, with disappointing profits in Q1 making way for losses in Q2 and Q3, and the company's preliminary results indicate an total annual loss of $212 million. In contrast, the company posted a $601 million profit last year.

Prior to today's results, Acer announced that it was doubling its marketing budget in Europe, and attempting to reposition itself in the region. If the company is to improve on its ever-declining sales revenue, it needs to hit the mark on big product launches like the Aspire S5 ultrabook and CloudMobile S500 smartphone, both due for release this year.