By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Gateway posted a net loss of $8.6 million for its first quarter, ended March 31, narrowing its loss from $12.3 million during same period last year, the company reported earlier this month.
The $8.6 million loss came on sales of $1 billion, down slightly from the $1.1 billion generated during the first quarter of 2006. The overall number of computers shipped by Gateway was down 9 percent to 1.3 million year-over-year, and gross margin fell to 4.9 percent from 7.3 percent.
The company's retail segment experienced flat sales of $766.3 million as retail PC unit sales fell 6 percent year-over-year to 1.09 million. Gateway said these changes reflected a shift to higher opening price points. The company has kept inventory at less than four weeks.
Gateway's direct segment suffered a 20 percent decline in revenue compared with the first quarter last year taking in $86.7 million. Direct PC unit sales were 46,700, a 20 percent decline from the prior year, although the first quarter of 2007 was 16 percent better than the fourth quarter of 2006.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.