Gateway Provides Q2 Update
Jun 17, 2004
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Gateway, Inc. said that it expects to report an operating loss for the quarter ending June 30, 2004 that is narrower than its previous guidance range and revenue that exceeds guidance.

The computer company said it anticipates an operating loss of U.S. $0.13 to $0.14 per share, compared with previous guidance of a loss of $0.15 per share. This does not include the impact of previously announced restructuring and transformation costs, which are estimated to be approximately $250 million to $300 million, resulting in a loss of $0.80 to $0.94 per share. These costs are included in the company's previous statement that it expects total restructuring and transformation costs for the full year of $425 million to $475 million.

Gateway expects revenue in the second quarter to be $860 million to $880 million, compared with its previous guidance of $798 million.

The company attributed its narrower operating loss to increased revenue and continued progress in reducing selling, general, and administrative (SG&A) costs, which were somewhat offset by pricing pressure in Professional and rebates in Retail. It attributed its revenue performance to better than expected sales across most of its segments, particularly Professional and Retail.

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