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To: Gabriel008 who wrote (47078)	6/10/1998 3:52:00 PM
From: Techie	Respond to of 176388

-- Gateway <GTW.N> comfortable with Q2 EPS estimate -- MINNEAPOLIS, June 10 (Reuters) - Gateway Inc. chief financial officer David McKittrick said Wednesday he is comfortable with Wall Street analysts' earnings per share estimates for the computer direct marketer's second quarter. "We've said the Street consensus of $0.44 is a reasonable number," he told Reuters following his presentation at the Piper Jaffray investors conference here. MORE Symbols: US;GTW Source RTR - Reuters News Service Categories: RTR/CPR RTR/USD RTR/RSF ZZZ/IND/DATA ZZZ/FIN/FRX ZZZ/SUB/RES

To: Gabriel008 who wrote (47078)	6/10/1998 3:53:00 PM
From: Techie	Read Replies (1) \| Respond to of 176388

-- Gateway <GTW.N> comfortable with Q2 EPS =2 -- In the 1997 second quarter, Gateway earned $0.36 a share. McKittrick said the company is not satisfied with its growth in business with large companies. "We have very many initiatives going on with large corporations," he said. "The fact is we're not growing that business as fast as we would like." He said that to combat the problem, Gateway is working on changing the management and the sales structure of the group that deals with large corporations and is planning to move that group headquarters to Irvine, Calif., where its server systems unit, Advanced Logic Research, is based. MORE Symbols: US;GTW Source RTR - Reuters News Service Categories: RTR/CPR RTR/USD RTR/RSF ZZZ/IND/DATA ZZZ/FIN/FRX ZZZ/SUB/RES

To: Gabriel008 who wrote (47078)	6/10/1998 3:55:00 PM
From: Techie	Read Replies (1) \| Respond to of 176388

-- Gateway <GTW.N> comfortable with Q2 EPS =3 -- McKittrick declined to say what percentage of the company's revenue is derived from business with large corporations, but that sales to customers other than consumers and small businesses make up about half its revenues. First quarter revenues were $1.73 billion. Gateway told investors at the conference that its recently introduced sales program called "YourWare," which includes Internet access and financing options, is the computer company's answer to the sub-$1,000 personal computer market, where it sees little opportunity. -- Gateway <GTW.N> comfortable with Q2 EPS =4 -- "We think this is a vastly superior alternative to what is described as the sub-$1,000 PC," McKittrick told the group. "I don't know anybody that's making money in that market today." He said program addresses two problems: financing and obsolescence. Buyers using the YourWare program can not only finance the purchase, but can trade in their PC in two years for a new one. In addition, McKittrick said the program has the potential to double Gateway's gross margin dollar per system sale. A straight sale of its bottom-line PC at $1,249 has a gross margin dollars of about $200 but through a YourWare sale, that could reach more than $400, he said. The North Sioux City, S.D.-based company plans to have 300 to 400 of its Country Store retail outlets operating in the next two to three years, he added. About 50 are currently operating and McKittrick said all are performing better than expected. Shares of the company, which is the third largest PC company according to research firm International Data Corp, were down 1-3/4 at 49-5/16 in afternoon activity on the New York Stock Exchange. ((Chicago equities news, 312 408 8787, chicago.equities.newsroom@reuters.com)) REUTERS