Gateway optimistic for quarter
Trading better than expected
Gateway, the PC maker, says losses for the second quarter, ending 30 June 2004, should be smaller than and revenues a little higher than previously anticipated.
The company now forecasts a loss of between 13 and 14 cents per share, rather than 15 cents. This excludes the impact of restructuring costs of $300m giving a loss of between 80 and 94 cents per share.
Gateway expects sales of between $860m and $880m compared to previous guidance of $798m. Sales were particularly strong in retail and professional markets. It attributes the smaller loss to better sales, coupled with success in reducing selling and admin costs. However, this had been offset by pricing pressure in professional markets and rebates in retail. ®