Acer profits little from large turnover

cashPC maker Acer released its financial results for the second quarter of 2016 and while its revenues amounted to $1.94 billion, its net profits were only $79,000.

The figures underline the challenges PC makers face as demand weakens for PCs.

Acer’s operating margin for the quarter was only 1.48 percent, and while that’s an improvement on the Q1 margin of 0.45 percent, it’s an uncomfortably small figure.

Acer said better gross margins “reflect Acer’s focus on value creation and optimised product mix strategy”.

It said changes it was making to its expenses “positively impacted the overall profitability” while it also faced challenges from foreign exchange fluctuations.

In the first half of 2015, its consolidated revenues amounted to $4.12 billion, down 18.9 percent compared to the same period in 2014.

This, Acer said, “reflected the delayed PC purchase as customers waited for Windows 10”.