Irvine-based Gateway Inc.’s interim chief executive, Rick Snyder, has taken his name out of the running to become the permanent chief executive of the computer maker.
During a conference call with analysts and investors on Thursday, Snyder said he wouldn’t pursue the full-time job after discussing the idea with his family, which lives in Michigan.
In February, Snyder stepped in after former chief executive Wayne Inouye resigned. Snyder had said earlier that he was in the running for the permanent job.
“The main criteria that I had with respect to potentially being the permanent CEO was a family concern, a family issue and really looking at that,” he told analysts. “I have three children and it just was not going to work out for them.”
Snyder does not plan on relinquishing his position as chairman. He also said the company should have a full-time chief executive in place by the end of summer.
“I’m actually enjoying my experience here and I think we are seeing positive results and I’m actively involved in the company and will continue on that path,” he said.
Gateway on Thursday reported a net loss of $12.3 million during the first quarter, which included charges of $14 million for legal expenses.
Without the legal costs, Gateway would have posted net income of $1.7 million in the quarter, compared to a loss of about $21 million a year earlier. Analysts were looking for income of $7.4 million.
Gateway grew on the sales front. Revenue rose 29% to $1.1 billion in the quarter, versus a year ago. Analysts were looking for revenue of $942 million.
The company’s bright spot, which former chief Inouye had pushed during his tenure, was retail sales. Gateway posted a 61% rise in retail sales to $767 million in the quarter.
Revenue for Gateway’s direct and business units fell 27% and 4%, respectively, in the period.
“Recently, we installed new leadership at the top of our professional and direct business units and our plan is to continue to aggressively address issues in those areas so that we can return pro and direct to profitability over the next three to four quarters,” Snyder said in a statement.
Shares of Gateway were down more than 5% in afternoon trading Friday.
