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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (37879)	10/5/2000 11:31:04 AM
From: Proud_Infidel	Respond to of 70976

Despite Dell warning, Gateway predicts good earnings By Reuters Special to CNET News.com October 4, 2000, 4:45 p.m. PT LOS ANGELES--Reacting to Dell Computer's earnings warning, rival Gateway said today it had been telling investors as recently as last week that it is comfortable with analyst earnings estimates. Gateway spokesman John Spelich, however, declined to comment beyond last week's statements. He cited the Securities and Exchange Commission's mandated "quiet period" ahead of the company's earnings release next week. Gateway executives said last week they were comfortable with a third-quarter consensus estimate of 46 cents a share, according to Spelich. In its earnings warning today, Dell attributed the shortfall to weak product demand in Europe. But Gateway's Spelich said Europe accounts for a small percentage of Gateway's total sales. "European sales for Gateway is 6 percent of our business. Prior to the quiet period, we said sales there were outperforming," Spelich said. A First Call/Thomson Financial consensus report of analyst forecasts estimates that Gateway's revenues for the quarter will be $2.5 billion. Story Copyright © 2000 Reuters Limited. All rights reserved.

To: Proud_Infidel who wrote (37879)	10/5/2000 5:42:34 PM
From: hhieslmair	Read Replies (1) \| Respond to of 70976

That article says extra foundry capacity! When did that happen? Up till now all I read was "not enough capacity" and fabless chip companies in a squeeze. "Wafer foundry companies are experiencing weaker momentum in the stock market than memory chipmakers these days, as burgeoning sales fail to offset the fact that shrinking demand has left them with idle capacity. A wafer foundry manufacturer said that such pessimism was premature, noting that some companies have shifted the focus of their contract manufacturing onto the more profitable high-end products. Although some of their production lines are presently gathering dust, he said, this will be offset by higher profits from the lines which are still operating, and he expected their financial results to be much as originally predicted. "