U.S. News

Acer Shares Slump on Fourth-Quarter Earnings, Lawsuit


Shares of Acer, the world's No. 4 PC vendor, fell on Thursday after the company posted a
worse-than-expected net profit and said it was looking into allegations surrounding a lawsuit against it.

Acer shares were trading at 62.20 New Taiwan dollars in the morning session, against a close of NTD64.10 on Wednesday. They had dropped as much as 4.1% when trading began.

After the market closed on Wednesday, the company reported its fourth-quarter operating profit rose 6 percent from a year earlier on growing demand.

But it posted a worse-than-expected 40% drop in net profit, which it attributed to higher spending on tax.

The company's stock also took a hit on Wednesday after Hewlett-Packard , the world's biggest PC vendor, said it had filed a lawsuit against Acer in the United States, claiming patent infringement.

Late on Wednesday, Acer said it was conducting a full investigation into the allegations. "As part of our continuing service, Acer is dedicated to supporting our customers through the lawsuit," Acer said.