PC firm Gateway swings to profit on tax benefit
From the Associated Press
Gateway Inc. said it moved to a profit in the fourth quarter as a result of a tax benefit.
The struggling Irvine computer maker reported net income of $8.8 million, or 2 cents a share. The result included a tax gain of $11.8 million. Last year Gateway posted a loss of $20.9 million, or 5 cents a share.
Analysts polled by Thomson Financial had expected earnings of 2 cents a share.
Revenue declined 9% to $1.02 billion, short of Wall Street’s estimate of $1.05 billion.
Unit sales of personal computers fell 5% to 1.29 million, giving the company a 6.6% share of the U.S. market.
The results were announced after the close of regular trading. Gateway shares fell 16 cents in extended trading after closing up 5 cents at $2.15.
