Gateway 2000 Inc finished off its fiscal year in style, posting fourth-quarter net income up 5.4% at $92.9m on revenue that rose 27.3% to $1.98bn. On a per share basis, Gateway came in at $0.59, way ahead of First Call’s consensus of $0.45. The North Sioux City, South Dakota company says it shipped 850,000 PCs during the quarter, a 38% increase year-over-year. Average selling price dropped 8% from the same quarter last year to $2,326 and gross margins dropped one point year-over-year to 18%. The boom in shipments and a nearly 2% drop in general expenses helped to offset those factors. the company’s cash pile increased by nearly $80m over last year to $593.6m. For the year, net income fell 56.2% to $109.8m, or $0.70 on revenue up 25% at $6.29bn. The decline is largely due to the $113.8m acquisition charge from the Advanced Logic Research purchase. Unit shipments for the full year rose 35% to 2.58 million. In addition to the results, Gateway announced that its board has elected Jeffrey Weitzen, president and chief operating officer. Weitzen will be responsible for directing the company’s sales and marketing divisions, manufacturing, engineering and worldwide business operations. Weitzen, who has also been elected a member of Gateway’s board, was formerly executive vice president, Business Markets Division at AT&T Corp.
