Acer CEO Resigns Over Board Disagreements - InformationWeek
IoT
IoT
Infrastructure // PC & Servers
News
4/1/2011
09:49 AM
50%
50%

Acer CEO Resigns Over Board Disagreements

Gianfranco Lanci has left the company after failing to reach an agreement with directors on the PC maker's future.

15 Influential Tech Board Members
(click image for larger view)
Slideshow: 15 Influential Tech Board Members
Acer chief executive Gianfranco Lanci has resigned, following disagreements with the board over the future direction of the world's third-largest computer maker, which recently reported a dim outlook on PC revenue.

The Taiwanese company said Thursday that Lanci's resignation was effective immediately, and board chairman J.T. Wang would be acting CEO until a permanent replacement is found.

Lanci left the company less than a week after Acer reported that first-quarter PC revenue would fall short of expectations, due to weak sales in Western Europe and the United States. The company said revenue was about 10% less than in the fourth quarter of last year. In addition, Acer said PC shipments in the second quarter would be flat over the first quarter.

The weak outlook sent Acer stock plummeting, with the company losing more than $1 billion in market value in four days, the Reuters news agency reported.

Acer said Lanci and a majority of the board held different views on the company's future, and the parties could not agree, despite several months of discussion. "They placed different levels of importance on scale, growth, customer value creation, brand position enhancement, and on resource allocation and methods of implementation," the company said of the discussions.

Going forward, the PC would remain the core of Acer's business and the company would continue expanding its commercial computer business, Wang said in a statement. "In addition, we are stepping into the new mobile device market, where we will invest cautiously and aim to become one of the leading players."

In February, Acer announced plans to start selling later this year storage and servers in the United States for the first time. The company's initial offering would include a total of 16 tower, rack, blade, and rack multi-node servers. The systems would be based on Intel Xeon or Advanced Micro Devices' Opteron processors. Acer planned to resell Hitachi storage products.

Acer rode high in 2008 and 2009 on the popularity of netbooks, inexpensive mini-laptops that fit well in the company's strengths as a maker of low-priced consumer PCs. That netbook market waned considerably last year with Apple's introduction of the iPad tablet. The iPad has led to a wave of competing tablets from other vendors, all of which have cannibalized netbook sales, analysts say.

Acer introduced its Iconia Tab in February and said it would release more models in the second quarter. Whether these systems can get the company's sales back on track in a fiercely competitive market remains to be seen. Wang acknowledged that Acer would need "a period of time for adjustment."

IDC in January rated Acer as the world's third-largest computer maker, in terms of shipments, following HP and Dell.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll