Irvine-based Gateway Inc. Thursday reported disappointing sales in the fourth quarter, sending its shares down nearly 7% in afterhours trading.
The computer maker posted sales of $1.12 billion for the quarter, up 9% from a year earlier.
Analysts were looking for sales of $1.22 billion.
The company said its direct sales saw a 39% drop in sales as marketing efforts failed to “drive sales.”
The company posted net profits of $22.4 million, up about 50% from a year earlier.
Excluding special items, the company posted fourth-quarter earnings of $12.6 million.
Analysts were looking for $18.7 million.
