Acer Inc (宏碁), the world’s third-largest personal computer supplier, yesterday said revenues may pick up in September, supported by back-to-school demand and replacement demand following the launch of PCs running Microsoft Corp’s new Windows 7 system and new low-power computers.
That would make the third quarter a better period than the second quarter, company chairman Wang Jeng-tang (王振堂) told reporters on the sidelines of the Taipei-based company’s annual shareholders’ meeting.
“Back-to-school demand is there, but the strength will not be as strong as it used to be,” Wang said, citing unfavorable macroeconomic conditions. “The US and European economies are still at their lows. China, which seems to be recovering, is the only bright spot.”
“People are not going to see a surge in July and August,” said Wang, commenting on Acer’s revenue trend in the third quarter. “They are more likely to see an apparent upturn in September.”
The commercial release of Microsoft’s Windows 7 in the fall and PCs equipped with Intel Corp’s ultra-low-voltage microprocessors would also help boost Acer’s computer sales, he said.
Despite uncertainty about a recovery from the global economic downturn, Wang said he still believed Acer’s notebook computer shipments would grow by between 30 percent and 40 percent sequentially in the second half of the year.
Acer did not provide shipment numbers for the first six months of the year.
Wang said Acer was also open to new merger and acquisition opportunities, as it expected more active M&A discussions during the downcycle.
However, the PC company would be very selective as it has reached economies of scale after acquiring US PC company Gateway and Paris-based Packard Bell in 2007.
Wang said Acer was a “cash-rich” company, adding that it was company policy to keep cash at a healthy level of between NT$20 billion (US$608 million) and NT$30 billion.
Acer’s shareholders yesterday approved a proposal to distribute dividends of NT$2 per common share in cash and 0.1 percent in stock, based on last year’s net profit of NT$11.74 billion, or NT$4.72 per share. Shareholders had earlier rejected a proposal to boost cash dividends by more than 12 percent.
Rival Quanta Computer Inc (廣達電腦), the world’s biggest contract laptop maker, is more optimistic about the second half of this year.
Company president C.C. Leung (梁次震) told reporters that shipments in the second half would account for 60 percent of its total notebook shipments this year. That would represent growth of 50 percent from the first half.
Quanta said it aimed to keep notebook shipments this year steady at around 36.5 million units as it did last year.
Acer shares edged up 0.17 percent to NT$58.10, underperforming the benchmark TAIEX, which gained 1.41 percent yesterday.
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