Gateway Turns to Profit on Retail Sales
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Personal computer maker Gateway  Inc. GTW.N on Thursday swung to a quarterly profit from a  year-ago loss as revenue rose 18 percent on  better-than-expected retail performance and the company retired  its preferred stock.
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Gateway is returning to Japan and will be launching some new desktop and laptop computers for the new market. Leveraging the distribution channels of its eMachines brand, the company now offers its new line
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Gateway&#39;s relationship with Micro Center is &quot;very exciting,&quot; said Bob Davidson, senior vice president of retail at Gateway.
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Gateway&#39;s new 700GR desktop PC, based on a new chassis design that focuses on helping cool high-end processors and graphics cards, will be available this weekend at US retail stores.
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The retailer posts modest gains in total sales and comps.
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SAN FRANCISCO (CBS.MW) -- Gateway Inc.&#39;s shares climbed as almost 8 percent Friday after the personal-computer and electronics company said it expects to post a second-straight quarter of earnings before one-time charges.
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Despite reporting a loss in the third quarter, Gateway made significant progress in turning its business around as it recorded its first operational profit since 2001.
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Gateway on Monday expanded the retail footprint of its eMachines desktop computers, which are now be available in Mexico. The company is selling three models--the L2541, the L2814 and the L2824--through chains in Mexico, including Elektra and Sam&#39;s Club.
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Gateway Inc. reported a narrowed net loss in the first quarter as it continues to restructure its operations and integrate its acquisition of eMachines. Still, the personal computer and electronics company posted a tiny operating profit -- its first in nearly three years.
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The Taiwanese PC maker has been growing fast. With Gateway, it gets a bigger foothold on U.S. soil.
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Retail sales over the Internet rose 4.7 percent in the third quarter and gained 21.5 percent compared with the same period last year as consumers continued to turn to e-commerce for shopping, a government report showed Friday.
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Gateway Inc. , the No. 3 U.S. personal computer maker, returned to profit in the fourth quarter but its shares fell 6 percent on Thursday after it reported revenue that fell short of analysts' estimates.
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Circuit City Stores Inc. on Monday  posted a quarterly profit compared with a loss a year earlier,  boosted by strong sales of high-ticket items like flat-panel  televisions and digital music players.
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Gateway (GTW:NYSE - news - research) narrowed its loss and beat Wall Street&#39;s bottom-line expectations for the quarter ending in September.
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Profits got a boost despite sluggish sales from the challenging environment.
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Buoyed by strong consumer demand for personal computers and stringent cost cuts, computer maker Gateway reported a third-quarter loss on Thursday that was much narrower than a year ago.
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Gateway has announced it will start sales on December 10 of own-brand high-performance personal computers in Japan through four consumer electronics volume retailers.