PC Maker Acer is in trouble and its figures might be another reason that CEO Gianfranco Lanci was asked to clean out his desk.
CEO and president Gianfranco Lanci was supposed to have left having disagreed with his lack of a cunning plan to capitalise on the rapid growth of the mobile device market.
However in three weeks Acer has announced chairman J.T. Wang will remain as CEO, and it’s promoting Jim Wong to the role of president.
But it has announced its figures, which show that ignoring the move into mobile was costing the outfit sales.
Things have been going badly for the last two quarters, but now it seems that Acer is expecting second quarter sales to fall a further ten percent from an already gutted first part of the year.
Acer had promised that its sales forcast would be consistent with the January to March period when it shipped 10.9 million computers. That would have been bad enough. the first quarter of 2011 was dire. A 12 percent drop from the same period in 2010.
Wong was not involved in the problems as he had previously been VP of the IT products group, which covers PCs.
Acer has created a new business unit called the Touch Business Group which is focused on mobile devices. Wong is supposed to be in charge of this and will have the job of turning everything around.
But the figures revealed that the outfit has more woes which go beyond failing to spot the move to mobile.
The figures blame the restructuring, which were unlikley to harm sales too much, inventory adjustments, and the seasonally slow second quarter. However if it was seasonally slow, then why were the expected figures so high?
Acers’ stock price has dropped 46 percent since the fourth quarter of last year and shareholders are understandably jittery.
You can’t lose that much value that quickly and be a healthy company. Wong has promised that he will move quickly to ease shareholder concerns.
Many analysts have suggested that if something is not done soon, with the share price that low, it will be a tempting buy out target.
It will have its work cut out to survive. It is a brave Acer employee who sells the Italian Goddess a laptop and only sticks a GB of RAM under the bonnet, and last we heard she was looking to have a word with someone.