Gateway shares tumble on profit warning

Shares in computer maker Gateway tumbled in after-hours trading last night after the firm issued a profit warning and admitted…

Shares in computer maker Gateway tumbled in after-hours trading last night after the firm issued a profit warning and admitted full-year profits for 2000 were 22 cents lower than previously reported.

Gateway laid off 132 staff from its Dunshaugh plant in north Co Dublin in January and warned more job cuts were likely.

After the market close, Gateway said it now expects to break even on an operating income basis in the first quarter. This compares to the 17 cents earnings per share Wall Street analysts were forecasting.

The company said it will take a charge of between $150 million and $275 million in the first quarter, related to the possible closure of underperforming stores and the planned exit from certain international markets.

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Gateway said full-year 2000 earnings per share were 22 cents lower than previously reported, primarily due to a $75 million charge related to a write-off in the company's investments in technology firms.

In New York after-hours trading last night, Gateway was trading at $15.67 well down from its 52-week high of $73.50.