ASUSTeK Computer Inc. said it has recovered NT$5.35 billion ($168 million) in unpaid receivables from Indian cloud service provider Yotta Group, resolving a debt issue that had severely impacted its fourth-quarter results.
The Taiwanese computer maker announced yesterday that the customer settled the outstanding payment on March 24. ASUS will reverse the bad debt provision once funds are transferred from its Indian distribution partner, according to a company statement.
The unpaid debt, stemming from server shipments made between April and June 2024, forced ASUS to record a substantial write-off in its fourth quarter, causing profits to plunge 87% and earnings per share to drop to NT$2.2. News of the write-off sent ASUS shares tumbling to below NT$600 before recovering to NT$631 on Monday.
ASUS anticipates its PC-related revenue will decline 20% in the first quarter of 2025 before rebounding with a 30% increase in the second quarter. Its components and server business is expected to follow a similar pattern with a 10% drop followed by a 10% recovery.
The company projects above-market growth for its PC business in 2025, citing anticipated demand from NVIDIA’s upcoming RTX 50 series graphics cards and Microsoft’s planned end of support for Windows 10.
