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Gateway reports quarterly loss, announces Best Buy deal.
Byline: Mike Freeman
Jul. 23--Money-losing Gateway's latest turnaround strategy hinges on getting its computers into retail stores such as Best Buy and Circuit City.
Yesterday, the Poway-based company took a step in that direction by announcing that Best Buy would carry Gateway notebook computers beginning this month and Gateway desktop computers starting in August.
Meanwhile, the company reported another quarter of losses, adding to a negative streak that's been going on for more than three years.
The nation's third-largest computer maker lost $338.6 million, or 91 cents a share, in the second quarter. That compares with a year-ago net loss of $72.6 million, or 22 cents a share.
Sales rose 5 percent to $837.6 million from $799.6 million.
One-time charges linked to the company's dramatic cost-cutting moves make up the bulk of the second-quarter loss. Not counting the one-time charges, Gateway lost $49 million, or 13 cents a share, which it said was its smallest such loss in 10 consecutive quarters.
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