Computer marketer Gateway Inc. posted a net loss of $339 million for the second quarter ended June 30, compared to a net loss of $172 million in the first quarter and a $73 million net loss during the same period last year.
Included in the second quarter is $289 million in restructuring, transformation and integration costs.
Revenue amounted to $838 million in the second quarter, compared with $868 million in the prior quarter and $800 million a year earlier. The company attributes the drop from the first quarter to the closure of Gateway retail stores and seasonal declines in sales.
“We are pleased with the strong demand for our products and are firmly on track to get Gateway back to profitability in 2005,” said Wayne Inouye, Gateway’s president and chief executive officer. “We are making excellent progress in widening the distribution of Gateway products, in streamlining our organizational structure and processes, and in reducing operating and administrative costs.”
Gateway sold 795,000 PC units in the second quarter, up 62% from the same quarter last year.
In the direct sales segment — which includes consumer and small business sales by phone and online, as well as the Gateway stores which were closed on April 9 — revenue totaled $214 million, off 54% from the previous quarter, with PC sales of 92,000 units, down 57%. The decline reflects the closure of the retail stores, as well as seasonal declines in phone and online sales.
In the professional segment — which includes small-to-mid-size enterprise, education and public-sector sales — revenue totaled $318 million, up 36% from the previous quarter, and PC sales amounted to 244,000 units, up 54%.
In the retail segment — which includes third-party retail and international sales — revenue totaled $306 million, up 82% from the previous quarter. PC sales rose to 459,000 units, up 96% sequentially.
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