Gateway sees flat earnings this quarter

Article Abstract:

Gateway 2000 is projecting its 3rd qtr 1997 operating results to barely break even. Lower than expected corporate computer sales triggered a recent 15% decline in Gateway's stock, Chairman Ted Waitt said. Gateway, a $6 billion-a-year company, has extended its market from consumers to corporations. Waitt blamed himself for the overaggressive corporate push. Analysts point out that time will tell whether the Gateway dropoff represents a transition phase, or the onset of serious problems. Gateway's move coincides with a flattening of the domestic home PC market at less than 40% saturation. Industry response has called for less expensive machines, with many less than $1,500, but the shift reduces profit margins for Gateway and other consumer PC vendors. Gateway, which targets sophisticated PC users, sells more powerful PCs at an average price of around $2,500. Corporate server computers offer substantially higher profit margins than home PCs, but businesses place additional product and service demands on vendors.

Company sales and earnings, Gateway Inc., GATE, Company Earnings/Profit

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For Dell, a tripling of earnings

Article Abstract:

Dell Computer Corp is reporting that its profits tripled in the 4th qtr ended Jan 29, 1995 and that its growth was boosted by strong performance of the company's notebook computer product series. Dell's net income was up from $17.7 million or 39 cents a share in the previous year's 4th qtr, to $60.3 million or $1.36 a share for the same qtr in 1994. Sales increased 39% to $1.03 billion. The company's performance was also helped by its decision to return to shipping its systems directly to buyers through mail order rather than trying to sell products through the retail channel at stores such as Wal-Mart. Analysts say that although Dell has made strides in temporarily repairing its business strategy, the company does not necessarily have a solid foundation for the future. Overall, industry computer shipments to consumers are growing at an average of 30%, while Dell's direct shipments to consumers is only 15% of sales.

Company Financial Information, Company Earnings Profit

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Dell's earnings increased by 42% in first quarter; but results still disappoint some investors

Article Abstract:

Dell Computer Corp.'s 1st-quarter earnings increased 42%. Earnings were $434 million, up from $305 million a year ago. Revenue rose 41% to $5.54 billion from $3.92 billion. Earnings per diluted share were 16 cents, in line with analysts' estimates. Some analysts expected Dell to exceed estimates after Hewlett-Packard reported higher-than-expected earnings. Before Dell issued its report, shares closed at $44.0625, up 81.25 cents. In after hours trading, they dropped as low as $41.375. Dell's growth rate is down from the average of 56% it maintained in the previous 8 quarters, but the company still leads its competitors in unit, revenue, and profit growth for the quarter. It is now second in world-wide market share after Compaq Computer. The company continues to credit its direct sales model for its strength in the market place.

United States, Sales, profits & dividends, Computers & Auxiliary Equip

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