Gateway Posts Larger Than Expected Loss
For Q2, the company reported a net loss of $61 million, or 19 cents a share, on revenue of $1 billion.Direct PC marketer Gateway Inc. reported a larger loss than expected as the company continues to stumble amid an industry-wide downturn in demand and a loss of market share to larger rival Dell Computer Corp. For the second quarter, the company reported a net loss of $61 million, or 19 cents a share, on revenue of $1 billion, down from $1.5 billion it garnered a year ago. Wall Street analyst had been forecasting a loss of 17 cents a share on revenue of $987.8 million, according to Thomson Financial/First Call.
Since the fourth quarter of 2000, when sales of consumer PCs fell off dramatically signaling the beginning of an industry-wide recession, Gateway has posted only one profitable quarter. Since early 2001, the company has slashed its work force, closed overseas operations and shut down more than two-dozen Gateway Country store retail outlets.