Acer raises financial projections for this year

Taipei, Dec. 3, 2003 (CENS)--Thanks to the rebound in sales of personal computers worldwide, Taiwan's computer giant Acer Inc. recently announced raising its projected after-tax earnings to NT$7.25 billion (US$213.23 million at US$1:NT$34) this year, up 21% from originally estimate of NT$6 billion (US$176.47 million).

Acer's move is triggered by its record-high sales revenue in Europe in the fourth quarter of this year. The company has also made handsome gains earnings from disposing of its stakes in reinvested firms, including Apacer Inc., Taiwan Semiconductor Mfg. Co. and AMKOR Co. The company said it would score NT$3.63 (US$0.1) in after-tax earnings per share (EPS) on total revenue of NT$153.2 billion (US$4.5 billion) this year.

With its president J.T. Wang dedicated to promoting own-brand products, Acer has seen monthly revenue successively hit new highs since the beginning of the second half of this year.

Based on the newly hiked financial projections, Acer's operating profits are expected to increase to NT$2.041 billion (US$60.02 million) from the original estimate of NT$1.865 billion (US$54.85 million), and its pretax earnings to NT$8.219 billion (US$241.73 million) from NT$6.415 billion (US$188.67 million).

Wang said his company has enjoyed a turnaround in own-brand operations since June last year. The company has made profits for six consecutive quarters since that time. The firm scored a new high revenue of NT$18 billion (US$529.41 million) in October and its core business also raked in record earnings of US$10 million in the month. A new high revenue is also expected for November.

Wang projected his company's total revenue will grow 50% this year and 40% next year. Combined revenue will break the NT$200 billion (US$5.88 billion) mark next year.

Recently Acer convened a global decision-maker meeting to map out business development goals for the next few years. At the meeting, the company anticipated its revenues generated from information technology products to reach US$3 billion in 2003, US$4.5 billion in 2004 and US$7 billion in 2005. The company will challenge US$10 billion in IT revenue in 2006.

Adjusted Financial Projections of Acer Inc.
	Adjusted Goal	Pre-adjusted Goal	Growth (%)
Combined Revenue (NT$100 million)	1,322	1,532	15.8
Operating Income (NT$100 million)	18.65	20.41	9.4
Pretax Earnings (NT$100 million)	64.15	82.19	28.1
After-tax Earnings (NT$100 million)	60	72.5	20.8
EPS (NT$)	3	3.63	21
Source: Acer Inc.