ARCHOS 2012 financial results and perspectives for 2013: themed tablets, smartphones and home automation

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It has been a while, since ARCHOS communicated about their product strategy.
In a financial press document released today, ARCHOS is publishing their financial results for 2012, announcing a new CEO nomination and giving their perspectives for 2013.

Archos_logo_black_nowrmk

Financial results

According to the press release ARCHOS revenue for year 2012 set at 154,9 M€ , a 10% drop compared to 2011. On the whole year in Europe, according to GfK Panel Market [1] jan12-dec 12 Europe 7, ARCHOS keeps a market share of 8% in volume on the sub-EUR 400 tablet and stays in third position after Apple and Samsung.

The financial publication is available only in French language at the moment, here is a summary of the numbers:
ARCHOS_2012_results_nowrmk

In terms of geographical distribution when we compare 2012 revenues to previous year, there is a small regression in Europe in 2012, while sales in Asia are increasing by more than 40% and declined in the US by about the same percentage.

Profit wise, 2012 financial results show wide difficulties on the income figure, with a reported Net consolidated income of -38,7 M€, compared to year 2011 where ARCHOS was profitable and made 5.7 M€.

A new CEO

ARCHOS Management in 2012:
ARCHOS_Management_2012_nowrmk

According to the press release, actual Deputy CEO Loïc Poirier has been nominated CEO of the company:

Following the recommendation of its Chairman, Henri Crohas, the Board of Directors has named Loïc Poirier to replace Mr Crohas as CEO of the Archos Group taking effect May 1st 2013. Loïc Poirier joined the Archos Group in 2005 as Chief Financial Officer, was promoted to Chief Operating Officer in 2007 and more recently to Deputy CEO in January 2013.
Henri Crohas, Archos founder, will retain his role as Chairman of the Board and will lead the Strategic Committee alongside the CEO, however he will be concentrating his efforts on the strategic
repositioning of the Group via the restructuring of R&D resources between European and Chinese teams while focusing on three axes: Themed Tablets, Smartphones and Home Automation.
The reorganization that began at the end of 2012, aimed at reducing operating costs, nears its completion, having led to the downsizing of the workforce by one quarter at head office and throughout
the group. The 2012 fiscal year financial accounting incorporates restructuring costs as well as inventory depreciation.

New perspectives for 2013


As explained in the press release, ARCHOS group will focus their 2013 on the following areas:

  • The launch of Themed Tablets under the Archos brand or under major distributor brands. These devices require a high level of personalization but also generate higher margins.
  • The entry into the Smartphone market. According to GFK, at the end of 2011, 57% of smartphones sold in France via retail channels were subsidized by telcos, however only 34% were subsidized during the 3rd quarter of 2012. This upheaval is favorable to Archos who traditionally sells through retail channels. Furthermore, Smartphones and Tablets are interrelated markets that have quickly crossed over with the arrival of “Phablets” – half-phone, half-tablet devices as well as 3G becoming commonplace.
  • The Investments in Home Automation, or, in the broader sense, connected objects that take advantage of new low energy wireless technologies. Archos has developed a range of miniaturized wireless connected objects and is building services around this connectivity
  • ARCHOS already started Themed tablets production with the ChildPad, a children oriented tablet (also distributed under Tabeo name), the GamePad, an Android portable game console, the FamilyPad, a tablet with a giant 13.3″ screen and more recently the TV Connect that brings Android to regular HD televisions.




    Financial press release at archos.com

    [1] GfK Panel Market jan12-dec 12 Europe 7 (France, Allemagne, UK, Espagne, Italie, Pays Bas, Belgique), tablettes de plus de 5,2 pouces

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