EMachines Down but Sees Better 2nd Half

Struggling personal computer seller EMachines Inc. on Wednesday reported its first-quarter loss widened over that of a year ago, but said it was comfortable with forecasts showing a narrower loss in the second half of 2001.

The Irvine company posted a loss of $31.1 million, or 21 cents a share, for the three months, up from $11.9 million, or 13 cents a share, a year earlier. Revenue slumped 45% to $136.2 million.

Excluding charges related to the transition of a new chief executive, the restructuring of the company’s Internet unit and other items, the company’s loss totaled $22.1 million, or 15 cents a share, compared with net income of $737,000, or 1 cent a share, a year ago.

EMachines said it expects sales to remain flat in the second quarter, but that it won’t quarrel with forecasts of a loss of 7 cents per share in the second half of the year.

The company said late last month that it was cutting 21 jobs, closing offices and eliminating some Internet products to cut costs. EMachines said it would take a first-quarter charge of $3.7 million to cover restructuring costs.