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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (88648)	1/20/2000 8:11:00 PM
From: Y. Samuel Arai	Read Replies (1) \| Respond to of 1596689

Gateway CFO -2: Supply Problems Solved, Y2K Seen Fading Dow Jones Newswires -- January 20, 2000 LOS ANGELES -- Gateway Inc. (GTW) strengthened its number-one market share in the consumer personal computer market and gained market share in the small-business market during the fourth quarter, according to Chief Financial Officer John Todd. The current first quarter is off to a good start, and Gateway is comfortable with current Wall Street estimates for earnings in the quarter, as well as for all of 2000, Todd said on a conference call. Earlier, Gateway reported fourth-quarter net income of $126 million, or 38 cents a diluted share, compared with $129.1 million, or 40 cents in the year-ago period. Fourth-quarter results were hurt by a shortage of microprocessors and a year-2000 related slowdown that mainly hit large-business, government and educational customers. The quarter's results also included expenses of $26 million, or 5 cents a share, related to a marketing agreement with America Online Inc. (AOL). Excluding those expenses and a tax-related benefit, Gateway's fourth-quarter earnings were $139.3 million, or 42 cents a share. Those results were in line with expectations that were lowered two weeks ago, when the company reported the chip-supply and Y2K-related problems. The first 19 days of the first quarter have been strong on the consumer side, and Gateway has resolved its supply problems, Todd said. (Gateway added Advanced Micro Devices Inc. (AMD) as a chip supplier after the supply problems with Intel Corp. (INTC).) On the business-customer side, business is still soft but has been ramping up in the past few days, Todd said. International business, especially Europe, has been strong, he said.