Acer: Breaking even in 2011 'impossible'

Posts bigger quarterly losses than expected

Acer  Breaking even in 2011  impossible

Acer has revealed that it will not break even in 2011, posting bigger quarterly losses for Q2 2011 than expected.

The company blames the losses on tricky times after its restructure in the early part of the year, with severance payments for senior roles and inventory clearance costing the company dearly.

Acer chairman JT Wang told investors, "Today I have to say, trying to break even this year becomes impossible."

Sound the alarm

Tablets are partly to blame; the rise of the slate has threatened the notebook, Acer's key business; but Wang said he thinks the "fever" for tablets will pass and notebooks will make a come back.

The company sees the third quarter of the year (July – September) being better than the second, but still anticipates another set of losses.

Gartner's latest set of figures also showed Acer's PC shipments down by 47 per cent in Q2, losing the company the number one PC maker position in Europe, while the European PC market also declined by 19 per cent overall.

Via The Guardian