Acer, the world's second largest PC maker, saw its revenue slump in the first quarter following a management shakeup and what it described as a seasonal lull in demand. The Taiwanese manufacturer is now counting on tablets to boost overall sales.Its first-quarter revenue of NT$127.8 billion (US$4.45 billion) was down 21.2 percent over the same period last year. The company's gross profit also fell by 15.9 percent to NT$13.21 billion. Its net profit figures were not available.
The slide at the company is expected to continue through the first half, as shipments are expected to drop by 10 percent in the current quarter, the company said earlier this month. It expects improvements later in the year, driven largely by sales of its tablets.
The departure of CEO and President Gianfranco Lanci in March over business disputes with the board of directors, and a normal seasonal slowdown in the PC industry have contributed to the early-year slowdown, the company said during an investor conference on Thursday.
"The second quarter marks the new management team's arrival, so we believe that in this period we want to be especially cautious," Acer Chairman and CEO, J.T. Wang, told investors. "I hope everyone will give the new management team a new chance."
Competition from tablets is affecting the company's laptop sales, according to analysts. Laptops accounted for 66 percent of Acer's revenue in the first quarter.
cnet
The slide at the company is expected to continue through the first half, as shipments are expected to drop by 10 percent in the current quarter, the company said earlier this month. It expects improvements later in the year, driven largely by sales of its tablets.
The departure of CEO and President Gianfranco Lanci in March over business disputes with the board of directors, and a normal seasonal slowdown in the PC industry have contributed to the early-year slowdown, the company said during an investor conference on Thursday.
"The second quarter marks the new management team's arrival, so we believe that in this period we want to be especially cautious," Acer Chairman and CEO, J.T. Wang, told investors. "I hope everyone will give the new management team a new chance."
Competition from tablets is affecting the company's laptop sales, according to analysts. Laptops accounted for 66 percent of Acer's revenue in the first quarter.
cnet
