View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
September 3, 1997updated 03 Sep 2016 8:59pm

GATEWAY WARNS OF THIRD QUARTER SHORTFALL

By CBR Staff Writer

Personal computer maker Gateway 2000 Inc has warned that net income for its third quarter ending September 30 will not meet analysts’ expectations of $0.47 per share. Gateway chief Ted Waitt blames the shortfall on internal forecasts which were overly aggressive and indicated that the company is seeing rising costs and falling margins. The UPS strike, lower average unit prices and potential reserves against excess inventory will adversely affect the quarterly results. Gateway still believes that unit shipments for the quarter will be up about 30% over the corresponding period last year. Operating income for the quarter is expected to be marginal before non-cash charges stemming from the acquisition of Advanced Logic Research Inc (CI No 3,186) and a one-time write-off of investments. For the third quarter of 1996, Gateway posted net income of $60.7m, or $0.78 per share, on revenues of $1.2bn. In July, the company reported second-quarter net income of $56.5m, or $0.36 per share. Gateway shares, which dropped $2.75 on Tuesday amid rumors of the announcement, continued their slide Wednesday, shedding $3.75, or 10.3%, to close at $32.813.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU