“Shares of Gateway Inc. plunged Tuesday after the computer maker said it turned a profit for the first time in more than three years, but also jolted investors by slicing its full-year sales and earnings outlook,” Elliot Spagat reports for The Associated Press. “Gateway shares fell 70 cents, or 18 percent, to $3.19 in early trading on the New York Stock Exchange. The stock has traded in a 52-week range between $2.78 and $6.92.
“Revenue grew 4.2 percent to $873.1 million from $837.6 million, boosted by booming PC sales. The company sold more than 1 million PCs during the quarter, up from 795,000 last year,” Spagat reports. “Gateway, based in Irvine, said pricing and component-cost pressures contributed to its lower earnings forecast for 2005. It cut its profit estimate to between 11 cents and 13 cents a share from its previous estimate of between 15 cents and 17 cents a share and its revenue forecast to between $3.9 billion and $4 billion from between $4 billion and $4.25 billion.”
“‘There’s no safe haven for Gateway, it’s all about PCs,’ said William Fearnley, a securities analyst at FTN Midwest Research in Boston. ‘They’re more dependent on PCs than any of their major competitors, most notably Dell and Hewlett-Packard.’ Gateway ended last year with 1,900 employees, down from 7,400 at the end of 2003 and 24,600 in 2000,” Spagat reports.
Full article here.
MacDailyNews Note: Long-time MacDailyNews Readers know about the now-mandatory use of the word “beleaguered” whenever Gateway is mentioned. More info in the article, “Beleaguered Gateway puts on a happy face,” which also contains what is believed to be the first recorded use of “moo” on MDN. We now have 40 months left until December 16, 2008, when we’ll officially check in to take measure of beleaguered Gateway.
Related MacDailyNews articles:
Beleaguered Gateway announces ‘iPod Photo killer’ (with image) – October 28, 2004
Beleaguered Gateway launches ‘iMac G5 killer’ – September 21, 2004
Beleaguered Gateway to ditch consumer electronics to focus on PC box assembly – September 13, 2004
Beleaguered Gateway cuts another 1,500 jobs; has cut 22,600 jobs in last four years – April 30, 2004
Beleaguered Gateway grinds up customer and spits him out unsatisfied – April 02, 2004
Beleaguered Gateway closes all retail stores; Apple poised to open 77th outlet – April 01, 2004
Beleaguered Gateway to axe over 2,000 jobs in next few months – March 03, 2004
Beleaguered Gateway to buy eMachines; combo could be 3rd largest Wintel box assembler – January 31, 2004
Beleaguered Gateway cuts more jobs; closes Virginia manufacturing plant – September 03, 2003
Beleaguered Gateway puts on a happy face – December 16, 2002
Beleaguered Gateway desperately circling the drain – September 25, 2002