Acer shares fall after warning of further losses
Shares in Taiwanese PC maker Acer fell after the company posted worse-than-expected losses and said it was "impossible" to break even this year.
The firm posted a net loss of 6.8bn Taiwanese dollars ($234m;£143m) from April to June, compared with a profit of NT$3.6bn a year earlier.
Earnings have been hurt by slumping sales which have forced the company to cut jobs and write off inventory.
Acer shares fell by the maximum 7% allowed on the Taiwanese exchange.
"Acer made efforts to further downsize channel inventory due to stagnant European and US economies, and the slow PC market," the firm said in a statement.
"Additionally, the company paid considerably in senior executive severance pay. Consequently, Acer suffered a higher-than-expected loss."
Acer's strategy over the past few years has been to produce a large number of cheap laptops.
The Taiwan-based PC maker has lost market share as consumers flocked to newer, more technologically-advanced products like the iPad.
The company's own tablet computer has so far been unable to keep pace with Apple's top-selling iPad.
Acer Chairman JT Wang also told investors the company would not be able to meet its full-year profit forecast because of challenges faced from the slowing global economy.
According to research firm Gartner, Acer dropped from being the world's second-largest PC maker to the fourth-biggest in the second quarter of this year.