saw second-quarter sales tumble while its loss widened from last year's levels, although it did see some improvement in gross margin.
The company's loss widened to $69.8 million from last year's $58.5 million, but Gateway pointed out that last year's results were aided by a $34 million income tax benefit.
Its pre-tax loss of $70 million was actually 25% better than last year's pre-tax loss of $93 million, the company said.
Gateway's EPS loss of 22 cents showed less red ink than Wall Street's expectations, which had assumed an EPS loss of 28 cents.
Sales of $799.6 million were down 20% from the same quarter in 2002 and just below the consensus estimate of $803.9 million.
Gross margin of 17.2% saw a gain from last year's 14.3%. Gateway chalked up the better profit level to savings in the cost of goods line and increased sales of non-PC products and services.
It confirmed analysts' consensus estimates for the third quarter of $874 million and fourth-quarter revenue of $954 million. It says it's maintaining prior guidance for a third-quarter loss of 19 cents a share and a fourth-quarter loss of 9 cents a share. Wall Street analysts were gearing for losses of 20 cents and 10 cents, respectively.
In regular trading, shares closed down 11 cents, or 2.9%, to $3.68.