Gateway 2000 Inc, which last month warned that its second-quarter numbers would beat the year-ago quarter but wouldn’t meet analyst’s estimates of $0.45 per share (CI No 3,184), delivered what it promised, posting net income up 10% at $56.5m, on revenue up 23% at $1.39bn. Net income for the quarter was equivalent to $0.36 per share, hitting First Call’s revised expectations on the head. Explaining the poor showing, the company says that demand accelerated during the quarter, but later in the period than it had anticipated. The North Sioux City, South Dakota direct marketer said unit shipments were up 31% for the quarter, with European shipments rising 47% and Asia- Pacific 90%. International sales accounted for 18% of the quarter’s total. Gross margins rose to 18.7% from 18.1% a year ago. Six-month net income rose 22% to $124m, or $0.79 per share on revenue up 23% at $2.81bn.
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