Huge figure includes late write-down of raw materials, executives taking salary cuts
The tough times at Acer continue, with todays announcement of preliminary figures for the Q4 2013 period. Top line numbers include a $274.39 million operating loss, which includes $44 million in raw materials being written-off. As if this isn't enough of an indicator of the tough times the Taiwanese manufacturer is facing, its senior executives are all taking a 30% salary cut in order to "share responsibility."
The full year figures also make for pretty grim reading, too. The total after-tax loss is approaching $700 million for 2013, and is accompanied by an interesting quote:
Acer acknowledges missteps in the past on resource allocation, and the over expectation of ultrabooks and notebooks with touch panel. Although the products were leading in design they did not accurately fulfill market needs.
A sign of the ever changing landscape of personal, and mobile computing. Acer does currently offer a relatively healthy line of Android smartphones and tablets, without any of them standing out. Speeding up the "corporate transformation" is one thing, but whether it actually works only time will tell.