Gateway To Buy Low-Cost PC Maker.
In: Small Business Computing (2000), 2004-02-01, S. N.PAG
serialPeriodical
Zugriff:
This article reports on the acquisition of eMachines by Gateway in February 2004. The deal--consisting of $30 million cash and 50 million Gateway shares--creates the third-largest personal computer (PC) company in the U.S. and the eighth-largest in the world. The deal helps answer questions about Gateway's commitment to the PC market in the face of slipping market share and an aggressive push into consumer electronics. The acquisition, which is expected to close by the end of the first quarter of 2004, comes amid a losing streak for Gateway, which saw sales slip and took charges related to its rollout of consumer electronics products. During the fourth quarter of 2003, Gateway reported a net loss of $114 million, or 35 cents per share, on revenues of $875 million. The loss included a $65 million charge related to restructuring and transformation expenses stemming from its previously announced outsourcing. In 2003, Gateway reported a net loss of $526 million on revenue of $3.4 billion. Again, the loss included restructuring costs. Total PC sales for the year were 2.1 million, a 24 percent decline over the prior year. eMachines sold 1.9 million computers last year, just 100,000 shy of Gateway. And most of those were under $800, a fast-growing category. Gateway plans to keep both brands. But the privately held company was attractive for other reasons. Chief among them, relationships with a dozen high-profile retailers, including Best Buy, Office Depot and Wal-Mart. Gateway wants these stores to sell its flat-screen TV and DVD players, which it sees as a growth area, despite mounting competition from Dell and others.
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Gateway To Buy Low-Cost PC Maker.
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Autor/in / Beteiligte Person: | Haley, Colin C. |
Zeitschrift: | Small Business Computing (2000), 2004-02-01, S. N.PAG |
Veröffentlichung: | 2004 |
Medientyp: | serialPeriodical |
ISSN: | 1529-5117 (print) |
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