Gateway's Changes Yield Little Reward

If Gateway Inc. hasn't pulled out of its slump, it's not for lack of trying new things.

Last year the firm experimented widely and boldly, launching a new branding campaign that ditched its long-running cow motif and introducing plasma televisions and other electronic gadgets to its 272-store chain.

Where computer makers often throw in a free printer or free shipping to entice customers, Gateway went one better and offered a "buy one, get one free" special for its desktop computers.

But in a sluggish personal computer market increasingly dominated by Dell Computer Corp. and Hewlett-Packard Co., Gateway is still suffering.

The Poway, Calif.-based company has lost money in most quarters during the past two years and has announced that it will not meet lowered earnings estimates for its current quarter.

Gateway said Tuesday that it expects to report fourth-quarter revenue of about $1.06 billion and a net loss per share of 18 to 19 cents. Previously, the company predicted fourth-quarter revenue of $1.2 billion and a fourth-quarter net loss of 13 cents per share.

News source: Washington Post - Gateway's Changes Yield Little Reward

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