C.C. Wang, chairman of Acer, said that popularity of Acer's newest Timeline series ultra-thin laptop, the world's first CULV-based product, is vital to the aforementioned objective. The company has enjoyed an influx of orders from retailers worldwide and secured stable supply of LED (light emitting diode)-backlit display panels by contracting new upstream suppliers.

 

If Timeline proves popular with consumers, Wang noted, more competitors are likely to venture into the sector, helping to boost the penetration rates of ultra-thin laptops to 50% in the overall market for notebook PCs by the end of this year. Besides, he added, Timeline, bearing higher margins than Aspire One series netbook PCs, will also contribute significantly to Acer's profit performance to drive up the ASP (average selling price) of its existing product lines.

 

Acer recently reported its combined revenue of NT$119.086 billion (US$571 million at US$1: NT$33.4) and net profits of NT$2.026 billion (US$60.7 million), or NT$0.78 per share (US$0.023), for the first quarter of this year, respectively down 6.51% and 31.7% from a year earlier. Wang indicated that the sales declines were mainly caused by his firm's decision, in light of fluctuations of foreign exchanges and tightened credits, to cut shipments to retailers.

 

Coincidentally, Acer has also approved dividends of NT$2.1 per share, with NT$2 in cash and NT$0.1 in stock, for its 2008 fiscal year. Noteworthy is that the cash dividend is at the lowest level over the past four years.