PC manufacturer Gateway matched analyst's estimates by reporting net income of $152.6 million for the third quarter, up from $113.1 million a year earlier.

Net sales grew from $2.5 billion to $2.2 billion a year ago.

Sales and software made up 50 per cent of the company's profits, five per cent higher than expected. "We are not a pure-play PC maker anymore and our results last quarter prove the point," said Gateway president Jeff Weitzen. ®