Gateways Outlook Still Grim
Gateway Inc. chairman Ted Waitt has warned that the struggling PC maker's revenue outlook is even more dour than previously projectedGateway Inc. chairman Ted Waitt, who last month reclaimed the title of CEO following Jeffrey Weitzens departure, has warned that the struggling PC makers revenue outlook is even more dour than previously projected. Hard hit by an industrywide slump in PC sales that spurred the company to cut 12 percent of its work force last month, Gateway is projecting a first-quarter loss, its second consecutive losing quarter, and warned that earnings and revenue for the first half of the year will fall 50 percent below previous estimates.
Waitt told a gathering of financial analysts Feb. 28 that he will focus on boosting Gateways PC business by streamlining its product offerings and emphasizing customer service. The strategy marks a reversal of the companys recent focus on "beyond-the-box" revenues, comprising sales of peripherals, software and services.