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To: AK2004 who wrote (721)	7/13/2000 5:19:54 PM
From: Mani1	Respond to of 275872

Re: GTW & AMD yahoo.cnet.com Gateway on target with revenue of $2.14 billion By Ian Fried and Stephen Shankland Staff Writers, CNET News.com July 13, 2000, 1:50 p.m. PT just in Gateway posted earnings a penny above analyst estimates today, reporting earnings per share of 37 cents on revenue of $2.14 billion for the quarter. Net income was $122 million. The company had 32 percent revenue growth in its core consumer PC sales area, helped by ready supplies of motherboards, memory and midrange chips. Business sales declined 10 percent, however, despite an effort to increase sales in the segment. Analysts surveyed by First Call/Thompson Financial had expected earnings of 36 cents per share on revenue estimated at $2.13 billion to $2.15 billion. For the same quarter a year ago, Gateway reported earnings of 28 cents a share on revenue of $1.9 billion. In the first quarter of this year, Gateway earned 41 cents per share on revenue of $2.34 billion. Gateway chief executive Jeff Weitzen promised better performance in business sales. "We're still not living up to the potential of our brand and our unique market position in the business-to-business area," Weitzen said in a statement. Gateway is "redoubling" its business sales efforts, he said. Chief financial officer John Todd said Gateway had already reached its goal of 40 percent of revenue coming from "beyond the box" sources such as Internet service provider accounts, printers and training. "We're two quarters ahead of where we wanted to be," Todd told CNET News.com. The company's earnings provide the first glimpse of whether PC makers' quarterly earnings reports will be as bullish as some expect. Among those with a major interest in Gateway's results are chipmakers Intel and Advanced Micro Devices. Gateway has become a major user of AMD processors this year and may go further with the Intel rival. "We clearly increased our (use of) AMD," Todd said, adding that it's too soon to say what mix of Intel and AMD chips Gateway will maintain for the rest of the year. Though analysts expected Gateway to have no problem clearing net income of 36 cents per share, several said Gateway's revenue might be lighter than initial expectations of about $2.15 billion. PaineWebber's Don Young expected ISP subscriptions to increase by 300,000 to 400,000 accounts per quarter. However, the company this quarter reported 250,000 new subscriptions.