Acer group profits drop 54% in 96

Taiwan's Acer Group, the island's premier PC maker, says its 1996 profits after tax, for the year, ended Dec. 31, dropped by 54% to US$188 million, from $413 million in the previous year. Sales revenues, meanwhile, grew slightly from $5.825 billion in 1995 to $5.893 billion last year, up by 1.16%.

Taiwan's Acer Group, the island's premier PC maker, says its 1996 profits after tax, for the year, ended Dec. 31, dropped by 54% to US$188 million, from $413 million in the previous year.

Sales revenues, meanwhile, grew slightly from $5.825 billion in 1995 to $5.893 billion last year, up by 1.16%.

The group's results were adversely affected by the 80% drop in dynamic RAM prices last year, officials say. Acer Inc., the group's core PC-making parent company, operates a DRAM joint venture in Hsinchu, Taiwan, with Texas Instruments Inc., of Dallas.

In addition, the group's US subsidiary Acer America Corp. was also hit last year by substantial inventory writeoffs due to weaker than expected demand for its consumer PCs in the US, said Stan Shih, Acer's chairman and CEO, in a recent interview with IDG News Service.

Acer, with headquarters in Taipei, Taiwan, can be reached on the World Wide Web at http://www.acer.com/.

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