Shares of Irvine computer maker Gateway Inc. fell 8% Thursday on disappointing second-quarter sales.
Gateway’s revenue fell 8% to $841 million in the quarter. Wall Street was expecting $953 million in sales.
The lower revenue overshadowed Gateway’s $1.9 million profit for the quarter, which reversed a $7.7 million loss a year earlier.
Analysts were looking for the company to break even.
Gateway has a market value of about $500 million.
The company’s sales of PCs through stores were up 4% to $614 million. Sales to businesses, schools and others were down 11% to $173 million.
In all, Gateway sold nearly 1.09 million PCs in the second quarter, down 7% from a year ago and off 13% from the first quarter.
