Irvine-based PC maker Gateway Inc. is settling a legal dispute with Microsoft Corp.,and getting $150 million over four years from the software maker.
Gateway said on Monday it expects to spend the money on marketing, including advertising, sales training and consulting. Some also could go toward research, development and testing of products running Microsoft software.
The litigation stems from the federal antitrust case against Microsoft in the late 1990s. Gateway was cited in the case as a computer maker impacted by Microsoft’s business practices.
As part of the settlement, Gateway plans to drop all antitrust claims against Microsoft.
Gateway, which moved to Irvine from San Diego County last year, is in the midst of a turnaround bid led by Chief Executive Wayne Inouye.
Early last year, Gateway bought Irvine’s eMachines, a discount PC seller that Inouye had brought back to life.
In a twist, Inouye ended up running Gateway, taking over from founder Ted Waitt. Since becoming chief, Inouye has closed Gateway stores and cut some 5,000 jobs.
Earnings for the first quarter are due April 28. Gateway said it expects to break even or post a small loss on sales of $810 million to $850 million for the period. Analysts had been expecting a slight profit on nearly $900 million in sales. They now expect a slight loss on $840 million in sales.
