Acer senior executives to take a 30% voluntary salary cut amid losses
By Kathryn Chiu , The China Post
January 18, 2014, 12:00 am TWN
TAIPEI, Taiwan -- Amid the announcement of an approved write-off of losses and costs, Acer Inc. (宏碁電腦) said on Friday its senior executives are taking a 30 percent voluntary salary cut starting in January.
Acer Inc., the world's fourth-largest personal computer maker, said yesterday that its board of directors approved a write-off of losses of NT$1.3 billion (US$44 million) in raw materials inventory and other costs in last year's fourth-quarter financial report.
“This latest write-off will help optimize the company's operational management,” the company said in a statement, noting that it will formulate its product strategy with more caution and implement more precise production planning and inventory control.
In a sign of the company's struggles, it was the second consecutive quarter that Acer released its earnings in the evening with less than two hours prior notice. Taiwanese PC makers traditionally issue their fourth-quarter earnings during business hours at investor conferences in March.
For the fourth quarter of 2013, the world's No.4 PC vendor reported a net loss of NT$7.6 billion, compared to Reuters-compiled analyst expectations of a NT$3.69 billion loss. The loss includes a NT$1.3 billion write-down in raw materials inventory and other costs.
The company posted a worse-than-expected net loss of NT$13.12 billion in the third quarter and a NT$3.37 billion-loss in the same quarter of 2012. It has reported losses or meager profit at best every quarter for almost three years.
Chief financial officer Eva Ho told reporters at a press conference that Acer will continue to face challenges but that losses should continue to shrink. Coming on the heels of a previously announced 7-percent reduction in workforce and other cost-cutting measures, Ho did not rule out future job cuts.
“Acer acknowledges missteps in the past on resource allocation and the over expectation of ultrabooks and notebooks with touchpanel,” the company said earlier in a press release. “Although the products were leading in design, they did not accurately fulfill market needs.”