Acer Says Fourth-Quarter Revenue Fell 5 to 10 Percent  

Posted by Mohammad Talha in ,

Acer, the world's third biggest PC maker, said on Friday that its revenue fell by 5-10 percent in the fourth quarter of last year, as retailers cut their inventory amid a softer market. In December, the company had actualy said that profits could increase.

TAIPEI, Jan 9 (Reuters) - Acer Inc, the world's third biggest PC maker, said on Friday its revenue fell by 5-10 percent in the fourth quarter of last year, as retailers cut their inventory amid a softer market.

However, the company said in a statement it expects its operating margin in the last three months to have improved or remain broadly unchanged from the third quarter of 2008.

"In the current worldwide economic situation, even though most of the channels have been more cautious and less willing to carry inventory by year end, Acer's product demand has remained healthy and stable," the company said in a statement.

A newly implemented change to accounting rules in Taiwan that regulates inventory control, known locally as accounting standard No. 10, would also not have any influence on the company, the statement said.

Acer, which has not publicly disclosed its operating margin in the past, reported a revenue of T$159 billion ($4.8 billion) in the third quarter of last year.

In contrast to rivals it issued an upbeat outlook in December, saying that its fourth-quarter profit could exceed its own previously undisclosed profit forecast due to effective cost control.

Acer is the latest in a string of tech companies to warn of reduced earnings, impacted by the global economic slowdown. On Thursday its smaller cross-town rival Asustek said it would not be able to meet its previous shipment forecasts. (full Story)

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