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To: Sonny Blue who wrote (10671)	2/27/2002 11:02:16 PM
From: Bill Harmond	Respond to of 57684

lightreading.com

To: Sonny Blue who wrote (10671)	2/27/2002 11:04:18 PM
From: Bill Harmond	Respond to of 57684

From Briefing tonight: 23:00 ET GTW Gateway (5.10 -0.33) This is not a reprint of an old story... After the close, company pushed out its forecast for profitability until next year... GTW also guided estimates sharply lower for Q1 and for FY02... Now sees a pretax loss of $100-$120 mln, ex-charges, on revenues of $1 bln... CFO notes that would mean a per share loss of 18 to 24 cents v. estimated loss of $0.08... Should note that of the 16 analysts surveyed by Multex, the lowest estimate was for a loss of 18 cents... Interestingly, consensus revenue estimate was $1.05 bln... In other words, the combination of lower prices and higher marketing costs appear to be impacting margins in much the way we predicted in our 2/1 Stock Brief entitled, "Is Gateway the Next Kmart?" For the year, GTW expects a loss of between $200-250 million, or 39-49 cents, with revenue in the range of $4.5-5 bln... Consensus estimates, according to Multex, were for a loss of 16 cents on sales of $4.6 bln... Not wanting to sound completely negative, management noted that it expects to report a profit, before special charges, in FY03... As Waitt said, "this is a momentum business. You're either going up or you're going down. We've got momentum." Have to agree with him there... GTW has momentum... Unfortunately, it's the same kind skiers have as the race DOWNhill.