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GATEWAY 2000 BUCKS THE PC INDUSTRY TREND: SECOND-QUARTER REVENUE UP, EARNINGS UP

 GATEWAY 2000 BUCKS THE PC INDUSTRY TREND:
 SECOND-QUARTER REVENUE UP, EARNINGS UP
 NORTH SIOUX CITY, S.D., Aug. 13 /PRNewswire/ -- While many PC manufactures are posting quarterly losses, Gateway 2000 revenues continue to climb. For the second quarter ended June 30 the company shipped nearly 100,000 systems for $248.6 million in revenue. This represents a five percent increase from the $236 million registered in first quarter 1992, and a 97 percent increase from the &126.6 million registered in the same quarter last year. In addition, pretax earnings for the privately held company were also up more than 97 percent from the second quarter a year ago.
 "We are very pleased with our second-quarter figures," said Gateway 2000 President Ted Waitt. "In addition, orders exceeded revenue in the second quarter, so we feel confident that third quarter will be even stronger."
 Original Business Model Still Spells Success
 Each quarter the company's revenues have exceeded the previous quarter. Waitt attributes this to the way they do business: "We have been able to sustain our continued growth based on our original business model, and we see no reason to change it at this point. We are still providing customers with high-quality, fully configured systems at outstanding prices, along with excellent support.
 "In fact, later this year we will continue to demonstrate how our low cost of doing business, combined with our presence in the industry allows us to offer high-performance products that define new price/performance standards," he continued.
 Strong Financial Position
 In addition to posting increased revenue figures, Gateway also continues to grow in financial strength contrary to the monetary problems facing much of the PC industry. The company's pretax earnings percentage for the first half of 1992 was at approximately 10 percent. This exceeds the percentage for the first half of last year, and for all of 1991.
 The company's current ratio is about two to one. Stockholders' equity exceeds 50 percent of total assets, and long term liabilities are currently only 2.3 percent of total assets.
 "We have a great balance sheet, not only for the computer industry, but as far as any business is concerned," said Gateway 2000 Executive Vice President Rick Snyder.
 Gateway's financial institutions recently doubled its line of credit to the mid eight-figure range. The company has no balance due on its credit line and has not drawn on it since the first half of 1991.
 Tremendous Growth
 Each year, Gateway 2000 sales have grown dramatically. The company sold $1.5 million in 1987, $11.8 million in 1988, $70.6 million in 1989, $275.5 million in 1990, and finally, $626.8 million in 1991. At the current run-rate, 1992 revenue is expected to exceed $1 billion.
 About Gateway 2000
 Named the fastest-growing private firm in America by INC. magazine, Gateway 2000 currently sells more IBM-compatible personal computers through the direct market channel in this country than any other PC manufacturer.
 Founded in 1985, Gateway 2000 is located in North Sioux City, S.D., and currently employs nearly 1,400.
 Gateway 2000, 610 Gateway Drive, North Sioux City, S.D., 57049, 605-232-2000 or 800-523-2000.
 -0- 8/13/92
 /CONTACT: Glynis Gibson of Gibson Communications, 312-883-2388, For Gateway 2000/ CO: Gateway 2000 ST: South Dakota IN: CPR SU: ERN


SM -- NY008 -- 9455 08/13/92 08:17 EDT
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Publication:PR Newswire
Date:Aug 13, 1992
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