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

To: Jayson Moss who wrote (6941)	12/19/1998 3:14:00 AM
From: NW Bronco Fan	Read Replies (2) \| Respond to of 8002

These 2 excerpts were in GTW's Q3 earnings report. I'm not sure if this was brought up at the time the report was issued, but these two items bring up a few questions about the current quarter. ------------------------ From Q3 earnings release: biz.yahoo.com .....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. then later in the report: Business Outlook The Company expects its growth momentum to continue in the fourth quarter. Gateway will continue to offer new initiatives to home and business, bringing the latest technology to all our clients, continue to invest behind its brand position and open additional Gateway Country stores. However, there is some uncertainty around the overall economic climate and the continued pressure on average unit prices. Waitt commented. ''We are entering the peak of the consumer buying season with excellent brand position, the right products, services and a team that will continue to propel Gateway's success.'' ------------------------- If GTW's backlog was 40% higher at the end of Q3, how bad did demand for GTW PC's fall off in October and November. Also, have the quality and shortage problems been resolved? The reason I ask this is the in the following story: quote.bloomberg.com GTW's CEO is telling analysts that October and November had "lackluster" shipments in the months of October and November. The article doesn't mention anything about component problems, so I would guess it does not continue to be a problem. So if GTW started the quarter with a higher than normal backlog but finished November with 2 months of lower than expected revenues, just how bad is/was demand and has it picked up since December 2? If at the time of the Q3 earnings release they were entering the peak of the consumer buying season, then it would appear that this quarter would likely fall well short of expectations.