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Acer Q4 profits and sales up

Microscope contributor

Acer has reported a double digit rebound in fourth quarter net profits with operating income climbing to an all time high, indicating that one of the toughest recessions on record is drawing to an end.

In a typically brief statement, the Tawanese PC giant said retained earnings went up nearly 25% to $110m (£70m), operating profit hit $155m and sales soared 23.8% to $5.2bn (£3.31bn).

This final flurry helped improve overall numbers for 2009 however group profits still fell 3.5% to $354m as revenues grew 5% to $17.9bn.

The yearly profits include "a relatively minor income investment disposal and comprises almost in entirety of Acer's core business income," the firm said.

The recession has been kinder to some than others and Acer, with its heartland in the consumer notebook space has benefited well from the only part of PC market that continued to grow last year.

The next move for Acer is to build its commercial business, something the vendor kick started through Gateway - part of its multi-brand strategy - and is aiming its PCs and servers at mid-market customers.

According to reports yesterday, Acer CEO Gianfranco Lanci wants to be a strong PC player in all segments and he reckoned servers would account for 4% of sales this which should bolster margins.

Alastair Edwards, principal analyst at Canalys, said Acer needed to ramp the level of investment in the commercial push and build the Gateway brand.

"HP has 50% market share in the industry standard server market and there is a share gaining opportunity for Acer but simply assuming that business is out there for the taking is not necessarily the case.

Related Topics: Desktop PCs, VIEW ALL TOPICS

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