Acer is expected to book a loss of NT$3.5 billion (US$120.8 million) or NT$1.30 per share for 2012 due to reduced value of its intangible assets amid its process to streamline brand operations.

If recognized, Acer will have operated in the red for two consecutive years through 2012 given that Acer posted only an EPS of NT$0.17 in the first three quarters of 2012.

The expected losses are being figured out after Acer confirmed recently that it has discontinued the operations of its eMachines brand, which may affect cash flow likely to be generated from a number of its trademarks.

Acer chairman JT Wang pointed out that the preliminary calculation is being made in accordance with generally accepted accounting principles GAPP.

Acer will continue operating the brands Gateway and Packard Bell with plans to expand the product lines of these two brands to include household digital convergence devices in addition to current PC products.

Acer will also continue keeping its Founder and iGware brands as it is eligible for operating the Founder brand for seven years, and cash flow and accounts receivables related to the iGware brand have shown no significant fluctuations amid the ongoing brand-consolidation process, said the company.

Acer said it posted intangible assets of NT$42.6 billion in the fourth quarter of 2012, and the net worth of its shares will drop to NT$27.5 from NT$28.8 after recognizing the anticipated losses of NT$3.5 billion.