Acer Revenue Falls in Q2 Amid European Debt Woes

From PC World: Acer, one of the world's top three PC vendors, reported a decline in revenue in the second quarter compared to the first quarter as the value of the euro fell.

The company's preliminary results for the second quarter showed revenue rose 26 percent year-on-year to NT$150.2 billion (US$4.7 billion), but the figure marked a 7 percent decline from the first quarter's NT$162.1 billion. Acer's net profit in the second quarter was NT$3.59 billion.

In a statement, Acer blamed the quarter-on-quarter revenue drop on the decline in the euro's exchange rate. Acer also turned away some less profitable orders for its wares in order to maintain its profit margin, the company said.

Most of Acer's revenue comes from Europe, where sovereign debt worries in Greece, Spain and elsewhere surfaced in the second quarter, sending the euro tumbling in value against other major world currencies. In the first quarter, Europe accounted for 50 percent of Acer's revenue, with 27 percent coming from the U.S. and most of the remainder from the Asia-Pacific region.

The company said component costs also continued to rise during the quarter.

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