Acer's CEO resigns after bad third-quarter losses of $446 million
Acer is the world's number four PC maker, but it's just lost a heap of cash and its CEO.
The troubled Taiwanese company posted its third-quarter earnings which revealed a net loss that was even worse than expected. The loss of $446 million also comes with the CEO jumping ship. President Jim Wong will succeed Wang as CEO and the company will then cut its staff by 7 per cent. This is to save operating expenses of $100 million annually from 2014.
"Q3's operating loss was mainly due to the gross margin impact of gearing up for the Windows 8.1 sell-in and the related management of inventory," the company said in a statement. Benefits from that investment should result in better earnings in the next quarter, theoretically.
The Acer Aspire S3 and S7 ultrabooks should help to make sales with Windows 8.1 pushing this type of hardware. With the CEO of BlackBerry being fired just the other day it's a tough time for companies in tech.
Acer said there was also an intangible asset impairment loss, which includes trademarks and goodwill, of T$9.94 billion during the reporting period. The predicted loss was T$109 million for the quarter, so the huge drop came as a real surprise.