Gateway Continues to Suffer Losses During Transition
Gateway, which is undergoing a transition away from simply being a PC manufacturer, lost $200 million in 1Q on revenue of $844 million.Gateway Inc., which is undergoing a transition away from simply being a PC manufacturer, lost $200 million in the first quarter on revenue of $844 million. The losswhich included a $78 million restructuring chargewas more than the $126 million lost in the same period last year and the $72 million lost in the fourth quarter 2002. The revenue figure also was a drop, from $992 million in the first quarter 2002 and the $1.06 billion it generated during the holiday season in the fourth quarter.
However, Gateway officials said the Poway, Calif., company is on track to becoming profitable by the end of the year and increasing sales of its higher-end non-PC products, such as its successful 42-inch plasma TV offering.