Acer records over 40% increase in net profit in October

Taipei-Taiwan-based PC brand Acer Inc. (??) has reported a year-on-year increase of more than 40 percent in net profit for October and its highest monthly revenue this year.

In a filing with the Taiwan Stock Exchange on Monday, Acer said its net profit for October totaled NT$288 million (US$9.58 million), up 40.02 percent from a year earlier, while its earnings per share was NT$0.10.

In October, Acer's consolidated sales rose 11.74 percent from a year earlier to NT$22.46 billion, the highest level so far this year.

Market analysts said the figures reflected Acer's momentum from the third quarter, when it reported about NT$1.45 billion in net profit, an increase of than 480 percent from a year earlier, and an EPS of NT$0.48, which was its highest level in 27 quarters.

Since the beginning of the year, Acer has benefited from growing global demand for gaming PC models, a trend that is expected to continue for the rest of this year, according to analysts.

In addition, Acer has also been seeing returns on its non-core business investments, which have contributed to the significant improvement of its bottom line, analysts said.

According to the Taipei-based market information advisory firm TrendForce Corp., Acer's notebook computer shipments grew by a quarterly 2.8 percent to 3.31 million in the third quarter, which put the company in sixth place worldwide with a global market share of 7.7 percent.

Acer's gaming PC sales are estimated at about 10 percent of its total revenue.

However, Acer's latest net profit report failed to boost its shares on the Taiwan Stock Exchange on Tuesday, as the stock fell 0.24 percent to close at NT$21.20, while the weighted index gained more than 1 percent.

The stock dropped because investors were rushing to pocket their gains after Acer released its third quarter results on Nov. 9, according to analysts.

Prior to Tuesday, Acer shares had gained more than 30 percent since Nov. 9, while foreign institutional investors bought a net 34 million Acer shares over the past five sessions.

Source: Focus Taiwan News Channel