Irvine-based Gateway Inc. posted a loss and disappointing revenue in the second quarter, the computer maker reported Thursday.
The company recorded a net loss of $7.7 million in the quarter, compared to a profit of $17.2 million a year earlier. Gateway posted a loss of $12.3 million in the first quarter.
Analysts were looking for a profit of $7.7 million in the second quarter.
The company posted revenue of $919 million, up 5% from a year earlier. Analysts were looking for sales of $1 billion.
As it has done in past quarters, the company posted an increase in its retail sales compared to the year-ago period, but declines in its direct (including Web sites sales) and business sales.
“While we are disappointed with our performance in the second quarter, we believe that our efforts in the first half of the year are beginning to resonate with customers and move us in a positive direction,” said Rick Snyder, Gateway’s chairman and interim chief executive.
The company noted some unusual items in the quarter, including a $14.2 million reduction in sales tax reserves and liabilities associated with retail customer rebates.
That was offset by a $14.6 million increase in its legal settlement expenses plus increases in warranty and royalty reserves.
Gateway shares were down more than 11% in afterhours trading Thursday.
