Acer 2005 Annual Report Download - page 7

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- 2 -
1.2 Business Report to Shareholders
In 2005, Acer has successfully implemented the Channel Business Model across our
worldwide operations. The sustainability of this indirect, channel-oriented model was
confirmed with the 2005 financial achievements. The consolidated revenue was NT$318.09B
(US$9.69B), representing 41.4% year-on-year growth and exceeding the full year target by
12.2%; profit after tax (PAT) was NT$8.48B (US$258.18M); earning per share (EPS) was
NT$3.83 – also exceeding the original target; and operating income reached NT$7.65B
(US$232.95M) to represent 100.9% year-on-year growth.
Continuing to expand our presence across the globe, in 2005 Acer was the world's No. 4
ranking vendor for total PCs and notebooks, and by Q4 2005 Acer notebooks had unseated
Toshiba from the No. 3 position. In EMEA (Europe, Middle East and Africa), Acer notebooks
retained its No. 1 ranking, and achieved the leading position across 13 countries in the region.
In the U.S. Acer has demonstrated significant progress, and with China as one of our
key-growth markets, we have also successfully implemented the Channel Business Model
into this market.
The foundation of Acer's success is a simple, highly effective and sustainable operational
structure. Our collaboration with first-class IT suppliers and channel partners has resulted in a
winning formula that benefits all parties involved. With complete market intelligence, Acer
has the capability to adapt to the IT market's changing environment with accuracy, through
global logistics, product development and brand marketing.
Looking forward, Acer strives for rapid growth while maintaining a low operating expense,
and to further enhance the supplier- and channel partnership. Acer's goal is to become a
top-three player in the worldwide PC market in 2007, to achieve this we must have a
substantial presence in each of the major regional markets in addition to gaining a better
balance of revenue contribution from the various product lines. Thus, Acer has defined the
U.S., China, and desktop PCs as the key-growth markets and product line.
Exemplifying Acer's innovative caring brand personality, Acer shall persist in researching and
developing Empowering Technology that enables our customers to benefit from technology
via a highly-intuitive user interface. Acer shall drive for significant growth across all product
lines for better balance of product portfolio. Specifically, we wish to become a world
top-three vendor for notebooks in 2006, double the desktop PC shipment, and achieve
considerable growth for LCD monitors and TVs.