Gateway’s Loss Widens; Legal Costs Are a Factor

Computer maker Gateway Inc. posted a wider first-quarter loss after a drop in sales to business and government customers and legal costs offset a gain in desktop computer orders.

The net loss widened to $12.3 million, or 3 cents a share, from $5.2 million, or 1 cent, a year earlier, Irvine-based Gateway said. Sales rose to $1.08 billion from $837.8 million a year earlier.

Minus legal costs, Gateway broke even.

Analysts on average had expected a profit, excluding some items, of 2 cents a share and revenue of $942.2 million.