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Acer losses lead to $44m materials write off

Promises to do better next time
Fri Jan 17 2014, 14:54
Jim Wong tells us how great the Aspire S7 really is

TROUBLED PC MAKER Acer has announced a series of measures designed to revive the company's fortunes.

Acer executives are taking a 30 percent pay cut to reflect the company's need for austerity, a book from which the UK banking sector might consider taking a leaf.

After a troubled third quarter that saw Wong to take over as CEO from Wang, the fourth quarter has also seen the company declare a quarterly loss of $274 million, with a decline in revenue for 2013 predicted at 16.2 percent.

In order to further sure up the company finances, Acer has also written off $44 million in unused raw materials after demand for touchscreen laptop and ultrabook devices slumped in the wake of the tablet boom.

The company's press release said, "Acer acknowledges missteps in the past on resource allocation, and the over expectation of ultrabooks and notebooks with touch panel. Although the products were leading in design they did not accurately fulfill market needs."

What that means in real terms is unclear but whether the materials are to be sold at a loss, destroyed, mothballed, or simply massaged away in some clever bookeeping, they show Acer as a company caught on the hop by the change in demand for its products and trying to right the ship.

Referring to its future strategy, the company said, "Taking immediate action, Acer will formulate its product strategy with more caution and implement precise production planning and inventory control."

In other words, it will stop stockpiling mass market laptops that fewer people than ever seem to want. µ


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