Acer announces strong growth

Acer announces strong growth

The end of August was a happy time, financially speaking, for Taiwan's Acer. The company announced after-tax profits of $NT2.7 billion ($135.2 million) for the six-month period ending in June, a 201 per cent rise over the first six months of last year. Revenues for the same period reached $NT66.9 billion, a 55.6 per cent increase over the corresponding six months in 1998.

Revenues in the first half of the year were above expectation due to some stock sell-offs and strategic alliances, Acer said in a statement. However, the company said that last year's losses from the company's chip unit, now known as TSMC-Acer Semiconductor, and from its US arm, Acer America, were higher than anticipated.

Over the past half year, Acer has been very busy with strategic alliances, signing lucrative deals with existing partner IBM and with Dell, valued at $US8 billion and $US929 million respectively. The Taiwanese company additionally sold off 30 per cent of troubled ASMI to chip foundry Taiwan Semiconductor Manu-facturing. (TSMC) for $NT5.47 billion.

Acer is also investing $US200 million in its newly set up venture capital, financial consulting and intellectual property arm, Acer SoftCapital International. Parent company Acer, along with its affiliates, plans to invest a total of $US1 billion in Acer SoftCapital over the next five years, the company said in the statement.

It will also invest in digital services and content developer and investor Acer Digital Services (ADSC). Through investments from Acer and its affiliates, ADSC's capital will grow to $US200 million by 2001, according to the statement. ADSC has already invested in Acer Net, Pagic, HiTrust, Tornado Technology, CityFamily, Webpoint and AsiaWired, Acer said.

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