Computer manufacturer Gateway today reported a first-quarter net loss of $502.9 million or $1.56 a share.
This compares to recording a year-ago profit of $119.640 million or 36 cents a share on last year. Gateway confirmed this week at up to 200 jobs from its Irish work force will be cut.
But company said today it expects its continuing operations to "approximately break even" and to return to profit in the second half.
The company reported a pre-tax loss of $6 million excluding charges and excluding a $75 million operating loss related to its consumer loan portfolio.In the quarter, the company took one-off charges of $533 million, $250 million of which was related to previously-announced restructuring moves.
Sales in the first quarter fell to $2.033 billion, roughly in line with the First Call estimate of $2.035 billion but down from $2.398 billion last year.
Gateway said unit sales will be slightly lower in the first half compared to year-earlier levels, while those sales are estimated to rise in the second half compared to 2000 levels.
The computermaker said it sold 1.1 million units worldwide, a fall of 12 per cent year-on-year and down 14 per cent from the previous quarter.