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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.

Earlier this month we reported that Arch rival Lenovo Australia had reported a $669,295 profit on revenues of $699million. Acer Revenues were $297 million.    

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.

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