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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: J. D. Main who wrote (168334)	1/8/2002 1:40:08 PM
From: stockman_scott	Respond to of 176387

Gateway Shares Drop 22 Percent After Sales Warning Tuesday January 8, 1:36 pm Eastern Time SAN FRANCISCO (Reuters) - Shares of personal computer maker Gateway Inc.(NYSE:GTW - news) fell 22 percent on Tuesday, following the company's warning the night before that sales lagged behind expectations in the fourth quarter, even as a top rival said revenue was rising. Gateway dropped $2.25, to $8, on the New York Stock Exchange in midday trade. Last year, the No. 2 U.S. direct PC seller cut international operations, but analysts said the results showed Gateway was struggling against rivals in the United States. Meanwhile, Compaq Computer Corp.(NYSE:CPQ - news) reported better-than-expected numbers. ``Although Gateway is in the early stages of its cost-saving consolidation on the U.S. market, the preannounced results show that Gateway is losing grasp even on its home turf, Credit Suisse First Boston's Kevin McCarthy wrote in a research note. Gateway, which focuses on direct sales to consumers, was caught between direct leader Dell Computer Corp.(NasdaqNM:DELL - news) and the consumer retail kings Hewlett-Packard Co.(NYSE:HWP - news) and Compaq, SG Cowen's Richard Chu wrote, saying Gateway was ''undoubtedly losing share.'' Gateway's late Monday announcement stood in contrast to one from Compaq, which said it would deliver higher revenue than expected and a profit, and indications that PC industry holiday sales would top forecasts. That helped boost Gateway shares 4.4 percent on Monday before the after-hours announcement. Gateway said revenue in its fourth quarter, typically its best, would be around $1.16 billion, compared to the $1.39 billion analysts polled by Thomson Financial/First Call expected, and unit sales would drop 15 percent from the third quarter to 700,000 instead of rising, as Gateway had forecast. The Poway, Calif.-based company said it would make a profit before taxes and charges and was focusing on the high end while a significant amounts of fourth quarter demand was in the low end. Gateway shares underperformed the S&P 500 index by 38 percent in the fourth quarter of 2001 and lagged the index for the other quarters of the year as well.