Gateway said its second-quarter operating loss would be reduced as much as 2 cents per share due to higher revenues and increased cost cuts, but the net loss would widen due to restructuring charges.

Gateway expects to report a second-quarter net loss of 80 cents to 94 cents per share, including restructuring costs of $250 million to $300 million from its recent purchase of competitor eMachines. Gateway previously said it planned to take $425 million to $475 million in charges related to the restructuring this year.

The company now expects an operating loss of 13 cents to 14 cents per share in the second quarter, compared with its previous view of a loss of 15 cents per share, due to increased revenue and lower selling, general and administrative costs, which were somewhat offset by pricing pressure and rebates.

It sees second-quarter revenue of $860 million to $880 million, compared with its previous outlook of $798 million, due to better than expected sales, particularly in the professional and retail sectors.

By: DocMemory
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