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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (9058)	3/19/2003 12:34:07 AM
From: StanX Long	Respond to of 95587

Gateway to Close Stores and Lay Off 1,900 By BLOOMBERG NEWS nytimes.com POWAY, Calif., March 17 — Gateway, the personal computer maker, whose shares have dropped 97 percent from their 1999 peak, will lay off 1,900 workers and close 80 retail stores to cut costs after a two-year slump in demand for PC's. The reductions, about 17 percent of Gateway's work force, will help reduce its expenses $200 million a year, the company said today. It intends to save an additional $200 million by increasing productivity and cutting component costs. Gateway has lost $1.33 billion over the last two years as businesses and consumers bought fewer PC's. The company, based in Poway, wants to shore up its PC business and add more profitable electronics, like the flat-screen television it introduced last year, to reduce its reliance on computers. Gateway plans to introduce digital displays and audio and video gear in 2003. Gateway expects sales to decline to $820 million to $850 million in the first quarter from $992.2 million a year earlier, with a loss of 62 cents to 66 cents a share, including restructuring costs. It was expected to lose 34 cents a share, according to Thomson Financial. Gateway's sales last year were less than half the $9.6 billion it reported for 2000. Sales have declined because consumers have bought fewer computers and larger rivals like Dell Computer have cut prices. Trading of Gateway was halted after hours before the release of the cost-cutting plan. The shares rose 20 cents, to $2.40, in regular trading.