Gateway gets away with great Q4

Gateway gets away with great Q4

Gateway has just released record fourth-quarter results reporting a 35 per cent increase in PC sales from the same period last year.

Revenue generated from the sale of 1.15 million PCs saw Gateway reach record sales of $US2.31 billion representing a 17 per cent increase compared to Q4 1997.

Unit sales in the Asia-Pacific region increased by 73.9 per cent resulting in a 50.6 per cent growth in revenues compared to the December quarter last year.

Ted Waitt, chairman and chief executive officer of Gateway, claims: "We grew twice as fast as the market overall, and even faster in the consumer segment, allowing us to achieve record market share for the 32nd consecutive quarter."

Despite Gateway decreasing its average unit prices by 14 per cent to $US2003 in 1998, the company has attributed stronger product and supply management, greater product range and declining costs as leading to a record gross margin increase of 21.6 per cent compared to 18 per cent from the previous year.

"Gateway's brand awareness continues to grow as does our market share. We are effectively managing all of our costs, expenses and inventory levels which led to our record margins, inventory turns and cash," said Jeff Weitzen, Gateway president and chief operating officer.

Unit shipments increased to 3.54 million in 1998, up 37 per cent from last year, with inventory turns growing from 21 to 40.

Gateway recorded a fourth-quarter net profit of $US129.143 million, up $US32.2 million from Q4 last year.

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