Posted on 07/18/2002 7:03:49 PM PDT by HAL9000
POWAY, Calif. -- Gateway Inc.'s second-quarter loss widened amid a 33% drop in sales.The personal-computer maker said late Thursday it had a net loss of $58.5 million, or 19 cents a share, compared with a year-earlier loss of $20.8 million, or six cents a share.
Analysts surveyed by Thomson First Call had a mean estimate for a loss of 17 cents of a share.
Sales fell to $1 billion from $1.5 billion, but were in line with a forecast the company gave in April.
During the second quarter, which is traditionally weak for Gateway, the company sold 651,000 units, down 18% from the year-earlier period, but up from 645,000 in the first quarter. Gateway's average unit price rose to $1,544 during the second quarter, up from $1,538 in the prior quarter.
Gateway's gross margin for the quarter was 14.3%, up from 14.1% in the previous quarter, excluding first-quarter charges.
Looking ahead, the PC-maker expects third-quarter revenue to "increase sequentially" and its loss to narrow compared with the second quarter.
Analysts surveyed by First Call have a mean estimate for a third-quarter loss of 10 cents a share.
In the year-earlier third quarter, Gateway had a net loss of $520 million, or $1.61 a share, on sales of $1.41 billion.
Gateway repeated its forecast for full-year revenue of $4.5 billion to $5 billion.
"We said 2002 would be the year Gateway starts growing again and so far, we've made meaningful progress against that goal," Chairman and Chief Executive Officer Ted Waitt said in a written statement.
Gateway reported results after the close of trading Thursday. As of 4 p.m. EDT, its shares were unchanged at $3.66 on the New York Stock Exchange.
Copyright 2002 Dow Jones & Company, Inc.
All Rights Reserved
Maybe Gateway needs a new Advertising Agency....
NeverGore
Moo.
When I worked for First Virtual Holdings, Inc., my CEO was Lee Stein. He had a pony tail and wore Armani suits. Lee invited the CEO of Gateway to his Rancho Santa Fe home as part of an effort to sell Gateway computers using the "virtual pin" concept over the internet. The Gateway CEO was so impressed with his visit that he decided to relocated the company to San Diego. He was simply tired of the cold weather.
Lee Stein was one of the most ethical people I've ever had the pleasure to work with. Lee built Seaport Village, was instrumental in getting the San Diego Stadium built, was/is the manager for Matthew Broderick, Peter Gabriel and others.
This is the wrong time to be posting bad revenue figures, both from a stock price standpoint as well as from a bank-loan/bondholder view.Why would anyone want to own a tech company's stock, when said tech company is losing money and failing to grow? Oh, and their inventory loses value every day, too.
Ouch. I almost liked their cow, but it's been milked into oblivion...
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| Last Trade 4:01pm · 3.66 |
Change 0.00 (0.00%) |
Prev Cls 3.66 |
Open 3.63 |
Volume 945,400 |
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| Day's Range 3.55 - 3.79 |
Bid N/A |
Ask N/A |
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Mkt Cap 1.186B |
Avg Vol 1,049,818 |
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| 52-wk Range 3.63 - 15.99 |
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P/S 0.24 |
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Div Date 7-Sep-99 |
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EPS (ttm) -2.05 |
EPS Est -0.51 |
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Ex-Div 8-Sep-99 |
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I dunno, the commercial where they were lip-synching Devo's "Whip It" was pretty good.
Delays, answering machine messages, no return calls, customer service rep was of no assistance at all, told one story on one day, another story the next day.
Took my computer and had it repaired, at my cost, at another shop. Had it back the next day.
As far as I'm concerned, GATEWAY SERVICE SUCKS, WILL NOT PURCHASE ANOTHER GATEWAY EVER.
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