Gateway, Inc. reported revenue of $844 million for the quarter ending March 31, compared with $1.06 billion in the fourth quarter and $992 million in the prior year period.
The company reported a net loss of $200 million or $0.62 per share, compared with a net loss of $72 million or $0.22 per share in the previous quarter and a net loss of $126 million or $0.39 per share a year earlier. The net loss for the quarter includes a $78 million restructuring charge for expenses associated with the company’s previously announced growth and cost-reduction plans. In a statement, the company attributed a significant portion of the increase in the net loss between the first quarter of 2003 and fourth quarter of 2002 to the reduction in tax benefits in 2003.
The company’s average unit price — defined as total net sales divided by PC units — increased to $1,670, the highest level since the first quarter of 2001. In the first quarter, Gateway sold 506,000 PCs, down 30% from the previous quarter and 22% from the same period last year, attributable to an increased focus by the company on mid to-higher-end PC sales.
Sales of non-PC products and services were 24% of revenue, up from the previous quarter’s 17% and the year-earlier period’s 20%. Sales of non-PC products and services comprised 90% of gross margin dollars compared with 38% in the previous quarter and 79% in the year-earlier quarter.
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