Foreign Currency Fluctuations + HQ Move Impacts Acer Profits
Acer has reported profits of $990,00, on revenues of $297.8 million the result has been delivered despite a tightening of the Australian PC market, a move to new offices and a major foreign currency fluctuations.
Revenues were down $6M on the previous year due in part to a decision to not expand in the highly competitive and heavily discounted consumer market where Lenovo, Dell and HP are heavily discounting their PC ranges.
A major contributor to the downturn in Acer profits was a was fluctuation in foreign currency which some media organisations interpreted as being associated with finance income. This impacted Acers profits by $1.9M.
Also contributing to a downturn in profits was a decision to move the national headquarters of Acer from Homebush to Homebush West. The move which is believed to have cost the Company in excess of $750,00 is set to be amortised over the next three years.
ChannelNews has been told that the move will save Acer over $500,000 a year while also delivering expanded warehousing capability.
Last week in New York Acer introduced a new range of gaming consumer and B2B PC’s.
The Company is also set to deliver a new range of Chromebooks for schools
In the USA Chromebooks have 62% share of the education market, Acer has the lions share of this market according to education executives attending last weeks launch.