SAN DIEGO, Nov. 20 /PRNewswire/ -- In Response to a Downgrade from Wit
Soundview, Gateway (NYSE: GTW) Chief Financial Officer John Todd issued the
following statement:
At Gateway, the past weekend marked the beginning of our holiday selling
season, which has historically been our highest volume quarter of the year.
As we are a direct-to-client company, our sales in the fourth quarter are
concentrated in the second half of the period. Based on current growth rates,
we are confident that our sales of PCs -- as well as sales of products and
services other than the PC, such as training, Internet service, software and
peripherals -- are ramping at expected levels. At the end of the third
quarter, non-PC income was more than 50 percent of Gateway's overall income,
with half of that recurring in the near term.
Given the success of our beyond-the-box model and current growth trends,
we remain comfortable with consensus EPS estimates and guidance on revenue for
the fourth quarter and full-year 2000.
About Gateway
Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on
building lifelong relationships with consumers and businesses through complete
technology personalization. Gateway ranked number one in U.S. consumer PC
revenue in 1999 (1) and was rated among the top ten best corporate reputations
in America according to a survey conducted in August of 1999 by Harris
Interactive and the Reputation Institute and published in The Wall Street
Journal. In 1999, Gateway was seventh in total return to shareholders among
Fortune 500 companies and tenth in total shareholder returns over the past
five years. (2) Gateway employees worldwide provide clients with services and
built-to-order computers that consistently win top awards from leading
industry publications. Gateway had total global revenue of $8.65 billion in
1999. For more information, visit our Web site at http://www.gateway.com
(1) According to GartnerGroup/Dataquest US PC Quarterly statistics.
(2) According to Fortune Magazine, April 17, 2000.
For more information contact media, John Spelich, 858-799-2657, or
investors, Marlys Johnson, 605-232-2709, both of Gateway.
SOURCE Gateway
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Related links:
http://www.gateway.com
CONTACT:
media, John Spelich, 858-799-2657, or
investors, Marlys Johnson, 605-232-2709, both of Gateway
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