October 12, 2009

Acer Predicts Stronger 3rd Quarter From Increasing Tech Demand

A rebound in tech demand has led Acer, the world's No.3 PC brand, to announce that it expects third quarter revenue to be up about 5 percent, Reuters reported.

The company also said it expected PC shipments to climb in the fourth quarter from the preceding three months as the holiday shopping season will increase the demand for computers.

Vincent Chen, an analyst at Yuanta Securities, said revenue growth is significant because it shows that people are returning to shops and buying computers.

"A strong operating profit margin also helped, because it means the company can keep costs in control," he added.

Acer also forecast revenue in the July-September period at a record high of $5.18 billion.

Net profit is expected to hit T$3.45 billion, in line with a mean estimate for T$3.42 billion in a survey of 15 analysts by Thomson Reuters I/B/E/S and compared with T$3.04 billion a year ago.

The company will release its official third-quarter results on Oct 30 and provide an outlook for the fourth quarter.

The last quarter of the year, helped by students returning to school and pre-Christmas demand, is typically the strongest period for most PC brands.

The launch of Microsoft's Windows 7 operating system is sure to help sales even more, as the sale of new system software is typically followed by an increase in consumer demand for computers.

Chip giant Intel has also offered an optimistic outlook, raising its revenue forecast in August. Contract PC maker Compal is also revising its shipment forecast upwards.

Due to Acer's reliance on consumers and HP's more diversified offerings, many analysts expect those two companies to emerge from the downturn faster than other rivals such as Lenovo and Dell.


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