Gateway Has $9-Million Loss, Misses Estimates
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SAN DIEGO — Gateway Inc. reported a second-quarter loss as consumer demand for personal computers remained sluggish.
Gateway said its operating loss was $9 million, or 2 cents a share, contrasted with profit of $118 million, or 36 cents, a year ago. Analysts expected a loss of 1 cent.
Sales fell 32% to $1.5 billion, missing analyst forecasts of $1.89 billion.
The San Diego company also said it will about break even in the second half, rather than return to profitability as expected earlier.
Gateway shares closed off 88 cents at $14.59 on the New York Stock Exchange before the earnings were announced.
Other technology sector earnings, excluding one-time gains or charges unless noted, include:
* Commerce One Inc. said its second-quarter loss ballooned to $70.2 million, or 31 cents a share, from $16.2 million, or 10 cents, a year ago. Analysts on average expected a much smaller loss of 21 cents. The software company’s revenue rose 61% to $101.3 million.
* Inktomi Corp. reported a fiscal third-quarter loss of 17 cents a share, a penny less than analysts expected, as sales fell 36% to $39.6 million.
* Conexant Systems Inc. said its fiscal third-quarter loss widened to $112 million, or 45 cents a share, from a loss of $53.3 million, or 24 cents, a year earlier. Revenue tumbled 62% to $200 million.
* EarthLink Inc. said its second-quarter loss narrowed to $35.1 million, or 27 cents a share, from a loss of $35.2 million, or 29 cents, a year earlier. Revenue rose 32% to $303.8 million.
* EBay Inc.’s second-quarter earnings more than tripled to $33.5 million, or 12 cents a share, from $10 million, or 4 cents, a year earlier, handily beating forecasts of 9 cents. Sales climbed 84% to $180.9 million.
* PMC-Sierra Inc. posted a second-quarter loss of $13.4 million, or 8 cents a share, contrasted with profit of $38.1 million, or 21 cents, a year earlier. Revenue dropped 37% to $94.1 million.
* Sun Microsystems Inc.’s earnings fell 80% in its fiscal fourth quarter to $134 million, or 4 cents a share, matching reduced forecasts, as sales dropped 20% to $4 billion.
* Vitesse Semiconductor Corp. reported a loss of $11.9 million, or 6 cents a share, for its fiscal third quarter, contrasted with year-earlier profit of $32.1 million, or 17 cents. Revenue fell 47% to $60.1 million.
