Acer Australia's profits fall $2 million amid finance income slide and tax bill hike

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Acer Australia's profits fall $2 million amid finance income slide and tax bill hike

Acer Australia’s profits fell by more than $2 million in the 2017 financial year, the latest entry in what has made up a rollercoaster series of years for the local subsidiary of the PC vendor.

The company’s total comprehensive income was $990,000 for the year ending 31 December 2017, down from $3.2 million in 2016. It reported revenue of $297.8 million, which was down about $6.6 million.

The hit to the company’s after-tax profit came from its finance income, which fell $1.7 million to just $192,000 in 2017, as well as an adjusted tax bill that saw it pay $2.1 million last year, up from the $1.7 million it paid in 2016.  

 

Within its finance income, Acer made a $468,000 loss across net foreign exchange in 2017, when in 2016 it generated $2.9 million. 

The slide follows a rollercoaster run for the local operations of the hardware vendor. In 2014 Acer Australia dug itself out of $45 million loss, which local director Darren Simmons said was owed to a difficult restructuring period. The company that year posted a pre-tax profit of $1.03 million, though taxes dragged it to a net loss of $914,000.

Acer then recorded a $1.2 million pre-tax loss in 2015 and a net loss of $3.57 million. In 2016 it returned to revenue growth and profit, posting $304 million in revenue and a $3.2 million after-tax profit.   

Acer was contacted for comment. 

The company recently announced, in conjunction with Google, plans to release a high-powered Chromebook for business professionals. The work will continue Acer and Google's Chromebook partnership, which has typically focused on cheaper machines for schools and children looking for simple computers.

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