Asustek Q4 sales down over 10 percent year-on-year

Taipei, Asustek Computer Inc., one of the largest PC brands in Taiwan, said Wednesday that its consolidated sales for the fourth quarter of last year fell more than 10 percent from a year earlier, at a time when trade tensions between the United States and China affected global demand.

The company also cited a component shortage in the PC industry as a reason for the drop in sales in the October-December period.

In a statement, Asustek said it posted NT$99.4 billion (US$3.23 billion), down 13 percent from a year earlier and also down 3 percent from the previous quarter.

Meanwhile, Asustek said it generated NT$88.1 billion in brand sales in the fourth quarter, down 15 percent from a year earlier and also down 6 percent from a quarter earlier.

In December alone, the PC brand's consolidated sales totaled NT$33.6 billion, down 8 percent from a year earlier and 3 percent from a month earlier, while its brand sales also fell 17 percent from a year earlier and dropped 14 percent from a month earlier to NT$22.7 billion.

In 2018, Asustek's consolidated sales fell 9.7 percent from a year earlier to NT$391.56 billion, while its brand sales shed 10 percent at NT$352.45 billion.

Asustek said it will focus more on developing gaming PCs, a niche market in the global PC business, and boosting its presence in the AIoT (artificial plus the Internet of Things) business in a bid to deal with the impact of a slowing PC market and eventually rake in more sales

Faced with escalating competition in the global PC industry, Asustek announced a management reshuffle in December 2018 with Chief Executive Officer Jerry Shen stepping down at the end of the month, kicking off a period of business restructuring.

Under a new dual leadership model, S.Y. Hsu and Samson Hu became Austek's CEOs on Jan. 1 to help guide the company's venture into the AIoT business.

Last month, Asustek disclosed it would book about NT$6.2 billion in one-time expenses, including losses resulting from inventories, amortization of advance royalties and costs from business reorganization in the fourth quarter, which raised concerns in the market the PC brand would report a loss for the quarter.

Asustek released its fourth quarter sales report before the local equity market closed Wednesday, when its shares ended up 2.31 percent at NT$221.00 after the gains posted in the U.S. and other regional markets.

Source: Focus Taiwan News Channel