Personal computer maker Gateway has said its quarterly loss has widened due to litigation expenses.
Gateway reported a first-quarter net loss of $12.3 million, or 3 cents per share, compared with a year-earlier net loss of $5.19 million, or 1 cent per share. Net sales climbed to $1.08 billion from $837.8 million.
Revenue for the quarter rose to $1.08 billion, up from $838 million last year.
The company sold 1.38 million PCs in the first quarter, up 47 per cent from the same period a year ago.
"In the first quarter, our retail business unit, which also includes our international sales, continued to perform very well in terms of both sales and margin," Rick Snyder, chairman and interim chief executive said in a prepared statement.
"Unfortunately, our positive retail results were partially offset by losses in our professional sales unit. As a result, we essentially broke even in the quarter, prior to litigation expenses of $14 million."
Analysts polled by Thomson Financial expected the company to earn, on average, 2 cents per share on $942.2 million in revenue.