Acer finishes torrid 2011 back in the black

Full-year operating losses stretch to more than $200m but shareholders at least get a small post-tax return in closing quarter

During the fourth quarter of 2011, Acer returned to profitability, but full-year figures revealed the inevitable massive sales slump and a nine-figure operating loss.

Preliminary results published yesterday show that fourth-quarter sales dropped 14.4 per cent annually to $4.2bn (£2.7bn), while operating profit plummeted 98.4 per cent to $2.4m. However, following net losses in Q2 and Q3, the $2.5m post-tax quarterly profit banked in Q4 marks the first time shareholders have been able to pocket anything in almost a year.

For the whole of last year, Acer's turnover fell 24.4 per cent to $15.7bn, with operating losses of $212m. This compares with an operational profit of $575m in 2010.

According to Acer, the lack of profitability for last year was "mainly due to the one-time write-off in EMEA in Q2". The vendor took a $150m hit after admitting it had mismanaged inventory levels in the region, leaving partners with a surfeit of stock.

"After the operational and strategic adjustments from Q2 2011, Acer's current financial and business operation is becoming more healthy and stable," added the vendor's media statement.