The China Post
Date: December 21, 2016
By: Christine Chou
TAIPEI, Taiwan — Taiwan-based PC brand Acer Inc. on Tuesday said its board of
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]