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Gateway Upbeat Despite Poor Quarter

2/28/2002 01:41:00 PM Eastern

Poway, Calif. - Despite current difficulties in a tough market, Gateway is looking forward to an expected return to profitability, excluding special charges, in 2003.

However, for the current quarter, Gateway is anticipating a pre-tax loss, excluding special charges, of between $100 million and $120 million. The special charge in the first quarter of about $75 million to $100 million is associated with the restructuring actions it had announced in January when it said it would eliminate 2,250 jobs and close 19 stores as part of its restructuring efforts.

For the 12 months, Gateway said it expects revenue in the range of $4.5 billion to $5 billion, and a pre-tax loss, excluding special charges, of $200 million to $250 million.

'This year, our objective is growth - we'll continue to drive growth rates that are better than the industry average, and, as a result, Gateway will return to long-term, sustainable profitability and gain share in our target markets,' said Ted Waitt, chairman/CEO.