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To: nihil who wrote (73291)	2/10/1999 12:41:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Nihil & Intel Investors - Gateway Expects Pentium III PCs to offset declining ASPs. "Price declines are expected to moderate to below 10 percent, down from 12 percent in the current quarter, as the company begins to sell more powerful machines based on Intel Corp.'s (Nasdaq:INTC - news) new Pentium III chip due out this month. Gateway has continued to gain market share among major PC brands and became the No. 3 supplier of PCs to the U.S. market in 1998, according to industry surveys. Todd said the company continues to see its units growing at double the pace of the industry, or about 35 to 40 percent for the foreseeable future." Paul {===============================} biz.yahoo.com Wednesday February 10, 12:06 pm Eastern Time Gateway sees Q1 results on track exiting January By Eric Auchard NEW YORK, Feb 10 (Reuters) - Gateway Inc.'s (NYSE:GTW - news) January results were on track and the company remains confident about its first-quarter results with a little over one-third of the quarter finished, Chief Financial Officer John Todd said on Wednesday. In addition, customer service delays experienced by callers since mid-January are largely behind the organization following a transition by Gateway's Internet access service to a new Internet connnection provider, Chairman and Chief Executive Officer Ted Waitt said. The Gateway executives made the comments in a presentation to professional money managers attending 13th annual Goldman Sachs Technology Symposium here this week. The month of January reflected seasonal slowness following the typical gang-buster growth of fourth quarter holiday sales. ''We came out of it (January) feeling as good as we can feel,'' Todd, the conmpany's recently hired chief financial officer, told an audience of several hundred Goldman clients. ''With one-third of the quarter done, we're confident,'' he said. Todd, who joined the company in late 1998 from AlliedSignal Inc. (NYSE:ALD - news), said he was referring to first-quarter consensus estimates of revenues of $2.0 billion and the First Call average of 60 cents in earnings per share for the leading direct supplier of home personal computers. Looking to the 1999 year as a whole, Todd said that, "We are still committed to the consensus numbers that are out in the market right now. He pointed to a chart showing expected 1999 year PC unit growth of 35 percent to 4.7 million, average unit prices declining 9.6 percent to $1,907, sales up 22.l percent to $9.1 billion and net income growth of 27.1 percent to $247 million. The decline of average unit prices, or what Gateway gets for each computer it sells, can act as a damper on overall revenue growth. Price declines are expected to moderate to below 10 percent, down from 12 percent in the current quarter, as the company begins to sell more powerful machines based on Intel Corp.'s (Nasdaq:INTC - news) new Pentium III chip due out this month. Gateway has continued to gain market share among major PC brands and became the No. 3 supplier of PCs to the U.S. market in 1998, according to industry surveys. Todd said the company continues to see its units growing at double the pace of the industry, or about 35 to 40 percent for the foreseeable future. Responding to a question from the audience, Waitt said the move to use UUNET to provide the backbone of its Internet customer service, replacing WEB America, the previous provider, was ''not a pretty transition.'' Gateway filed suit against WEB America in late January to revoke its contract. Gateway, which counts more than 200,000 subscribers to its Internet service, mostly recent buyers of new computers, plans to expand its Internet offering to its entire base of five million Gateway customers this year. Conflicts with WEB America led Gateway to switch to MCI Worldcom Inc. (Nasdaq:WCOM - news) unit UUNET, which it believes is best equipped to handle the scale of new customers expected to join the service in coming months. A spokeswoman said customer service delays resulted when a deluge of calls came into Gateway call centers from customers who had been slow to prepare for a switch to the new Internet service provider. She said ''160,000 customers had a smooth transition.'' But subscribers slow to read advance e-mail from the company warning of the change had troubles signing on to the service, triggering the backlog of calls. Providing Internet services is just one example of the company's efforts to sell a range of additional products and services beyond simply PC hardware itself to its famously loyal repeat customers, Todd said. At mid-day Wednesday, Gateway rose $3.56 to $74.06 in New York Stock Exchange trading. More Quotes and News: AlliedSignal Inc (NYSE:ALD - news) Gateway 2000 Inc (NYSE:GTW - news) Intel Corp (Nasdaq:INTC - news) MCI WorldCom Inc (Nasdaq:WCOM - news) Related News Categories: US Market News Help Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information. Questions or Comments?

To: nihil who wrote (73291)	2/10/1999 1:11:00 PM
From: L. Adam Latham	Respond to of 186894

nihil: Re: Off-topic - end to impeachment trial Do you believe an acquittal in the impeachment trial, assuming it happens later this week, is already factored into the market, or could there be a bounce the day(s) after it is finally decided? (I think it's factored in, but would of course appreciate a bounce). Also, if the Dems succeed in dragging out the process with censure legislation, could this prolong the mini-correction we've seen recently? (I would prefer the impeachment vote to be final - no censure - with each Senator having to convince his/her constituents that their vote was correct). Thanks, Adam