A one-third drop in international sales, combined with one-time restructuring charges resulted in Gateway Inc. taking a net loss of $503 million in the first quarter of 2001, compared with income of $119.6 million during the same period last year.

Excluding the special charges, Gateway would have had a loss of $79 million.

The San Diego-based computer marketer had $2.03 billion in revenue during the quarter ended March 31, compared with $2.4 billion a year earlier.

The company will reduce the role of non-direct sales channels, including closing under-performing retail locations and elimination of most indirect sales efforts.

Consumer sales were 19% lower than first quarter 2000. The firm’s business unit saw a 6% gain, with the small- and medium-sized business market jumping 13%. Its European operations had a 38% revenue drop, and its Asia-Pacific sales were down 32%. Gateway moved 1.1 million units worldwide during the quarter, down 12% from the same period last year.

But sales declines weren’t the only factor contributing to its distress. Included in its one-time charges are: $39 million to cover productivity initiatives stemming from its previously announced 12% reduction in force and the departure of senior executives; $75 million for the closing of under-performing retail locations in the U.S. and Canada and $38 million for restructuring of international operations.

The company has also abandoned its efforts to recover some of its accounts receivables, selling some of its more recoverable credit extensions and taking a $100 million write-down on others.

“We’re taking advantage of the current demand environment to take the necessary steps to get our business back in shape for the second half of the year,” said Ted Waitt, Gateway’s chairman and chief executive officer, in a statement.

Another part of these includes increased attention on the customer experience. Gateway has begun retraining its sales force, and will eliminate tech support policies that did not sit well with customers. According to the company, its internal tracking measurements show that customer satisfaction scores increased nearly 15% in the month of March alone, to their highest levels in the more than two years the company has been tracking such results.,p>

A one-third drop in international sales, combined with one-time restructuring charges resulted in Gateway Inc. taking a net loss of $503 million in the first quarter of 2001, compared with income of $119.6 million during the same period last year.

Excluding the special charges, Gateway would have had a loss of $79 million.

The San Diego-based computer marketer had $2.03 billion in revenue during the quarter ended March 31, compared with $2.4 billion a year earlier.

The company will reduce the role of non-direct sales channels, including closing under-performing retail locations and elimination of most indirect sales efforts.

Consumer sales were 19% lower than first quarter 2000. The firm’s business unit saw a 6% gain, with the small- and medium-sized business market jumping 13%. Its European operations had a 38% revenue drop, and its Asia-Pacific sales were down 32%. Gateway moved 1.1 million units worldwide during the quarter, down 12% from the same period last year.

But sales declines weren

A one-third drop in international sales, combined with one-time restructuring charges resulted in Gateway Inc. taking a net loss of $503 million in the first quarter of 2001, compared with income of $119.6 million during the same period last year.

Excluding the special charges, Gateway would have had a loss of $79 million.

The San Diego-based computer marketer had $2.03 billion in revenue during the quarter ended March 31, compared with $2.4 billion a year earlier.

The company will reduce the role of non-direct sales channels, including closing under-performing retail locations and elimination of most indirect sales efforts.

Consumer sales were 19% lower than first quarter 2000. The firm’s business unit saw a 6% gain, with the small- and medium-sized business market jumping 13%. Its European operations had a 38% revenue drop, and its Asia-Pacific sales were down 32%. Gateway moved 1.1 million units worldwide during the quarter, down 12% from the same period last year.

But sales declines weren