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Technology Stocks : Gateway (GTW) -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (6815)	10/22/1998 6:07:00 PM
From: Bipin Prasad	Respond to of 8002

This is for tip only. Gateway Reports Record Shipments for the Third Quarter - Three Times Worldwide Market Growth NORTH SIOUX CITY, S.D.--(BUSINESS WIRE)--Oct. 22, 1998--Gateway today reported results for the third quarter ended September 30, 1998. Gateway shipped a record 887,000 PCs in the third quarter, a 43% increase over third quarter 1997 shipments of 622,000. Sales increased 21% to $1.82 billion from $1.50 billion a year ago. Net income in the current quarter was $80.6 million or $.51 per share compared to a net loss of $107.1 million or a net loss per share of $.68 in the third quarter of 1997. ''Our strong third quarter unit growth was driven by demand for our Your:)Ware(SM) program coupled with back-to-school purchases and our Gateway Country(SM) stores,'' said Gateway Chairman and CEO, Ted Waitt. ''We also accomplished our goal of building a world-class team with the addition of several new senior level positions. In July, we added Maynard Webb as Senior Vice President and Chief Information Officer; in September, Todd Bradley came on board as Senior Vice President and Regional Managing Director of our Europe, Middle East and African operations plus Van Andrews as Senior Vice President of Gateway Business. With the impending retirement of Dave McKittrick, we announced this month the addition of John Todd as Senior Vice President and Chief Financial Officer and a new Senior Vice President and Regional Managing Director of our Asia Pacific operations, Frank Smilovic. In under ten months, we assembled a top management team that will fuel Gateway's growth as we continue to gain market share in both the consumer and institutional markets.'' ''In the third quarter, we achieved a record 8.5% of the total U.S. market share, up 1.8 share points from a year ago,'' said President and COO of Gateway, Jeff Weitzen. ''U.S. Home market share grew 2.3 share points to a 14.1% share of the market, based on DataQuest's market estimates for the third quarter. Clearly, the quality of our products and services is driving our approval ratings to record levels. Gateway shipments grew at three times the market and we achieved a 94% level of brand awareness during the third quarter. Approximately 75% of Gateway clients who bought a new computer in 1997 repurchased a Gateway system, the highest brand loyalty rating in the industry, based on the 1997 Technology User Profile from ZD Marketing Intelligence.'' ''Additionally, to better serve small and medium-sized businesses, we have added dedicated sales representatives in our call centers and have created business solution centers in our Gateway Country stores. We have also launched a simple, straightforward program including Gateway(TM) desktops, portables and servers, targeted for these business clients. We will continue to focus on these business initiatives, driving up our share in this valuable market segment. Demand for the Company's products was consistently good throughout the quarter; however, we experienced a number of component quality and shortage problems, which resulted in an increase of over 40% in our backlog compared to the end of the second quarter,'' added Weitzen. ps: Tip, pay attention to "Business Outlook " and "Special Note " They are the keys for next qr. Looks good. "Component supply shortages" is very interesting to me! InSook