Acer Incorporated (TPE:2353) reported its earnings for the third quarter of 2013 this morning before the market opened on Wall Street. The Taiwanese PC maker showed a loss of $446 million for the three months through September. The company’s Chief Executive JT Wang resigned on the back of the loss.
The struggling PC market is not an easy place for companies to operate in 2013, and Acer Incorporated (TPE:2353) appears to be cracking under the pressure. The firm’s revenue for the third quarter came to $3.13 billion. In the second quarter of the year Acer lost just over $11 million, surprising analysts who were looking for a small profit by consensus.
Acer CEO resigns
JT Wang had been the CEO at Acer Incorporated (TPE:2353) since 2005. Today’s announcement revealed that he will leave the company and will be replaced by the President of Acer Jim Wong on the first of January next year. The move is one that offers some kind of hope for transformation to investors.
Acer has been battered through 2013 by a faster than expected decline in PC sales and a less than striking entry into the world of mobile devices. The company will need to reverse those trends next year if it hopes to survive. In addition to the resignation of the Acer Incorporated (TPE:2353) CEO the company announced a restructuring program that will cut 7% of its staff and $100 million in costs.
Surprise losses and bigger than expected declines have hit Acer Incorporated (TPE:2353) shareholders hard through 2013. The company’s stock has fallen by close to 28% since the year began. The loss has been reasonably even throughout the year, and there seems to be little hope on the horizon.
Investors still sticking with Acer Incorporated (TPE:2353) will find it difficult to retain faith in a company that blamed the disastrous results on waiting for the release of Windows 8.1.