Gateway Continues to Suffer Losses During Transition

 
 
By Jeffrey Burt  |  Posted 2003-04-17 Email Print this article Print
 
 
 
 
 
 
 

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 loss—which included a $78 million restructuring charge—was 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.
"The number one goal I have right now is to transform Gateway from a traditional PC manufacturer to a branded integrator," Chairman and CEO Ted Waitt said during a conference call with analysts on Thursday. That means having a wide range of Gateway-branded products—from PCs and systems to digital TVs, mobile devices and services—that can be brought together to create a single solution, Waitt said. For example, during the first quarter ended March 31, Gateway rolled out two new mid-range servers, the Gateway 960 and 980 server lines, and two rack-mounted servers earlier this month, Gateway 955 and 975 systems.


 
 
 
 
 
 
 
 
 
 
 

Submit a Comment

Loading Comments...

 
Manage your Newsletters: Login   Register My Newsletters























 
 
 
 
 
 
 
 
 
 
 
Rocket Fuel