On Feb. 8, PC maker Gateway (NYSE:GTW) released preliminary fourth-quarter earnings for the period ended Dec. 31.

  • An $11.8 million tax benefit moved the bottom line into the black with an $8.8 million net profit, but revenue dropped 9%.
  • Not satisfied with the results, CEO Ed Coleman said in the conference call that his goals are to "drive down our cost structure, improve operational execution, and reallocate our resources to concentrate on the consumer market."
  • Our Motley Fool CAPS community gives Gateway but one lonely star out of a possible five.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005






Net Profit








Diluted Shares




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Margin Checkup

Q4 2006

Q4 2005


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points.

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Balance Sheet Highlights


Q4 2006

Q4 2005


Cash + ST Invest.




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Cash Flow Highlights
As management seeks to improve the company, we put in a vote to include a cash flow statement with earnings.

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Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.