Acer earns slim profits in Q2

Taiwanese computer manufacturer Acer posted its profit results for Q2 2015 ending with June, and has barely made any money.

According to Focus Taiwan, the company has laid blame for the slim earnings on currency volatility and the release of Windows 10, as customers waited for June 29 and the release of Microsoft’s latest operating system before making a purchase.

The New Taipei-based manufacturer reported net income of NT$2 million (US$50,900) for the April-June quarter and earnings per share (EPS) of NT$0.0008.

The company’s operating income was NT$890 million (£18m) during the second quarter on consolidated revenue of NT$60.2 billion (£1.2bn), which decreased 11.4 percent from the previous quarter.

Second-quarter operating margin improved from 0.45 per cent to 1.48 per cent, Acer said, reflecting the company’s plans for revival.

“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,”the PC maker said in a statement.

For the first half of this year, Acer's consolidated revenue fell 18.9 per cent year-on-year to NT$128.15 billion (£2.6nb), and its operating income was NT$1.19 billion (roughly £24m) in the first half of 2015 with operating margin of 0.93 per cent. Acer’s income was NT$176 million (£3.5m) and EPS was NT$0.06 between January and June.

“In the course of the Acer’s transformation, the organisation structural changes, effective product mix strategy and expense control are expected to enhance profitability going forward,” Acer said.

One analyst that asked to remain anonymous told The Channel : "The stage is set for further consolidation."