Earnings Reports for Jan. 11
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Gateway’s Earnings Fall Far Short of Forecasts
Gateway Inc., the No. 2 direct seller of personal computers, reported fourth-quarter results today that badly missed diminishedexpectations, and also forecast 2001 sales growth of just 3percent, prompting it to trim its workforce by 10 percent andrecord a charge.
The surprise earnings report, which came a week earlier thanscheduled, is the latest sign of just how precipitously theworldwide PC market has slowed amid flagging economic growth inthe United States and across the globe.
Gateway said that excluding a previously announced $187million pretax charge for a write-down on the company'sinvestments, it had fourth-quarter earnings of $37.6 million,or 12 cents a share. By comparison, in the year-ago periodGateway had net income $126 million, or 38 cents.
On that basis, the results were far below the 37 cents ashare consensus forecast analysts had expected, according toFirst Call.
Sales fell 6.9 percent to $2.37 billion from $2.55 billion.Gateway had already warned of the sales and earnings shortfallon Nov. 29.
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