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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (94631)	1/9/2002 12:00:25 AM
From: Night Writer	Read Replies (2) \| Respond to of 97611

Gateway is reducing expenses and giving up marginal sales to make a profit. The street slams them for making tough solid business decisions in order to survive. Their bond rating is cut to junk even though they have over a billion in cash and no debt. Sorta makes you wonder.... NW Gateway Sales Shortfall Sends Investors Running for Cover Jan 08, 2002 (TheStreet.com via COMTEX) -- Gateway was getting hammered Tuesday, a day after the company said that while it still expects to post a pretax profit for the fourth quarter, before special charges, sales will fall short of analysts' expectations. The PC maker's shares were dropping $2.11, or 20.6%, to $8.14 in recent trading. The company released its quarterly forecast after the close of regular trading Monday. Analysts expect the company to lose a penny a share in the quarter. Gateway forecast quarterly revenue of about $1.16 billion, but according to First Call, Wall Street is looking for a top line of around $1.39 billion. Gateway said domestic unit sales fell 15% from the third quarter, but the company said it generated a higher than expected average unit selling price in the fourth quarter. The company shipped about 700,000 units in the quarter. Gateway will post its results on Jan. 24. The company's projections come on the same day that Compaq raised its quarterly guidance. Earlier Monday, analysts offered optimistic comments on both Compaq and Dell . Other computer and hardware makers were mixed. Compaq was lately losing 2.3% to $11.41, while Dell was ahead by 1.6% to $30.10. IBM was up 16 cents to $124.21, and Hewlett-Packard was unchanged at $23.02. Apple was down 0.5% at $22.79. The Philadelphia Stock Exchange Box Maker's Index was slipping 0.5%. By TSC Staff (C) 1996 - 2002 TheStreet.com, Inc. All rights reserved.