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Gateway claims record PC sales in Q3

Sales flat in Europe, however

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PC company Gateway said it had shipped 887,000 PCs in its third quarter, a 43 per cent increase over the same period last year. It posted revenues of $1.2 billion, a 21 per cent increase on last year's figure, and showed net profits of $80.6 billion. In the equivalent quarter last year, it made a net loss of $107.1 million. Ted Waitt, CEO of the largely direct vendor, said the increase in PC shipments was due to its Your:)Ware programme, back to school buys, and sales through its Country stores. Gateway claims it now has 8.5 per cent US market share, and most of its revenues were driven by domestic sales, which accounted for 89 per cent of worldwide shipments. European sales, said Waitt, were flat but the Asia Pacific region grew, despite the economic woes, and rose by 74 per cent year on year. The company's acquisition of ALR this time last year, meant that it expanded its server sales by 297 per cent, Waitt said. Gateway managed to slightly increase its gross profit margin from 20.6 to 20.8 per cent. ®

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