Acer Reports Q2 2017 Results: Operating Income NT$992 Million with 1.8% Margin, Consolidated Revenues NT$53.6 Billion

TAIPEI, TAIWAN - Acer Inc. (TWSE: 2353) announced today the financial results for Q2 2017: consolidated revenues of NT$53.6 billion, impacted by the Taiwan (NT)/US dollar exchange rate, were down 4.6% year-on-year (YoY) in terms of NT$, but grew by 2.3% measured in US$; gross profits were NT$6.09 billion with 11.4% margin, showing steady improvement; and operating income was NT$992 million with 1.8% margin, marking its highest in six years[1].

A major factor in Acer’s non-operating loss of NT$696 million was its foreign exchange hedge contract evaluation, but which does not impact operations. Net income[2] was NT$244 million and earnings per share (EPS) were NT$0.08.

Acer’s operating margin of 1.8% was helped by the shipment growth of its thin & light notebooks, gaming devices, and Chromebooks. The gross margin of 11.4% reflected the company’s drive to optimize operations by focusing on areas of high growth, maintaining an effective product mix strategy tailored to different market segment needs, and collaboration with channels.

In 1H 2017, Acer’s consolidated revenues were NT$109.66 billion, down 2.5% or up 4.5% YoY measured in US currency; gross profits were NT$11.5 billion with 10.5% margin; operating income reached NT$1.45 billion, nearly threefold YoY, with 1.3% margin. Despite the rising cost of components and unfavorable foreign exchange rates in 1H, Acer enhanced its overall profitability, and reported net income of NT$307 million and EPS of NT$0.1.

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About Acer

Founded in 1976, Acer is one of the world’s top technology companies with a presence in more than 160 countries. The company continues to evolve by embracing innovation across its offerings, which include computers and displays, while branching out to new businesses. Acer is also committed to sustainable growth, exploring new opportunities that align with its environmental and social responsibilities. The Acer Group employs over 9,000 employees that contribute to the research, design, marketing, sales and support of products, solutions, and services that break barriers between people and technology. Visit www.acer.com for more information.