April 18, 2003

San Diego Union Tribune: Gateway posts big loss during 1st quarter

My spin This is REALLY bad...I like Gateway a lot, but what can they do to stop losing money. What can they do to become profitable. They've let go of staff and closed some stores....should they just start selling on only the East coast maybe - be a regional provider?

News Clip: Struggling Gateway said yesterday it lost $200 million in its first quarter, as soft demand and a one-time restructuring charge tripped up the nation's fourth-largest computer maker.
(full story)

But there is hope - here's some more the Tribune:

Under a new management team, the company hopes to become profitable again by clamping down on costs in its core PC business while branching out to sell other products that offer high profit margins, such as digital cameras and big-screen plasma televisions.

and

Even though Gateway has lost money in nine of its past 10 quarters, it has maintained a war chest of $1.2 billion in cash.

and

But the loss included a $78 million charge for store closings and job cuts. Without the restructuring charge, Gateway's loss was 38 cents a share, said chief financial officer Rod Sherwood.

That puts things into perspective.

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