Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Latest News

      Gateway Loses $49.7 Million in 3Q

      Written by

      eWEEK EDITORS
      Published October 17, 2002
      Share
      Facebook
      Twitter
      Linkedin

        eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

        PC maker Gateway Inc. on Thursday reported a net loss of $49.7 million for the third quarter, and overall sales continued to decline as stiff price competition from Dell Computer Corp. continues to erode the companys market share.

        For the third quarter, Gateway recorded sales of $1.12 billion, a 20 percent decline from a year earlier. Units shipped also declined 19 percent from a year ago, totaling 729,000 for the quarter.

        Despite the year-over-year declines, Gateway Chairman and CEO Ted Waitt contended that the companys recent promotional efforts were paying off, as demonstrated by a 12 percent increase in unit sales from the previous quarter.

        “Despite a challenging consumer spending environment, our efforts to continue growing the business paid off,” Waitt said in a statement issued Thursday. “We continue to deliver progress on our plan to return Gateway to long-term, sustainable profitability and growth.”

        However, the Poway, Calif., company projected that sales for the fourth quarter would come in below most current projections by market analysts, resulting in another quarterly loss to close out the year.

        “We are cautious on our outlook for the fourth quarter given uncertainty surrounding the economy and the holiday selling season,” said Chief Financial Officer Rod Sherwood. “However, in spite of challenging economic conditions, Gateway is demonstrating continued momentum … and improved its gross margin and operating expense ratio for the second consecutive quarter.”

        Gateways average selling price, which is the sum of PC and non-PC products and services sold at the point of sale, was $1,397 for the quarter, a drop from $1,414 in the previous quarter.

        Gateway has had only one profitable quarter since the end of 2000, when the company was first rocked by a sudden drop in PC demand. Since that time, its debts have mounted as it has engaged in a costly price war with Dell, of Round Rock, Texas, which has significantly boosted its consumer sales largely at Gateways expense.

        eWEEK EDITORS
        eWEEK EDITORS
        eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        MOST POPULAR ARTICLES

        Artificial Intelligence

        9 Best AI 3D Generators You Need...

        Sam Rinko - June 25, 2024 0
        AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
        Read more
        Cloud

        RingCentral Expands Its Collaboration Platform

        Zeus Kerravala - November 22, 2023 0
        RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
        Read more
        Artificial Intelligence

        8 Best AI Data Analytics Software &...

        Aminu Abdullahi - January 18, 2024 0
        Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
        Read more
        Latest News

        Zeus Kerravala on Networking: Multicloud, 5G, and...

        James Maguire - December 16, 2022 0
        I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
        Read more
        Video

        Datadog President Amit Agarwal on Trends in...

        James Maguire - November 11, 2022 0
        I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2024 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.