Acer approves NT$6.34 bil. impairment charge

The China Post
Date: December 21, 2016
By: Christine Chou

TAIPEI, Taiwan — Taiwan-based PC brand Acer Inc. on Tuesday said its board of

Acer’s Chief Executive Officer Jason Chen (陳俊聖) speaks at a press conference after a board of directors meeting in Taipei on Tuesday, Dec. 20. Chen said the board’s decision to recognize an impairment loss would not affect the firm’s cash position, while allowing its cloud-related business to expand. (Morgan Lin, The China Post)

directors agreed at a special meeting to recognize an impairment charge of approximately NT$6.34 billion, mainly that of intangible assets of its new cloud-related business.

Asked whether Acer’s stock price would drop on recognizing the impairment loss, CEO Jason Chen said the impairment charge — the third in the company’s history — would not affect company operations or its cash position because “Acer still has a NT$36 billion capital surplus that is enough for paying cash dividends.”

Once completed, the impact on earnings per share (EPS) is estimated to be NT$2.06, with net value per share of approximately NT$19. The move is also expected to reduce amortization expenses by approximately NT$230 million in 2017.   [FULL  STORY]

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