Gateway Proves Room For Profit In PC Sector, Hyperion Flat



The true state of the PC industry may depend on who you ask.While this week's news out of Compaq points to a marketplagued by decreased demand, Gateway yesterday proved thatits not just your product, but how you sell it that willkeep you in the game. The vendor saw a 22% revenue growthand 31% income gain by taking a new approach to selling PCsto the consumer and foreign markets, and is now looking toexpand on that success in the business market.

Gateway's multichannel strategy, which includes phone, Weband, physical store sales, led to $2.1 billion in revenueand net income of $99.6 million, or 62 cents per share. Lastyear's first quarter produced $1.7 billion in revenue, withnet income of $75.9 million, or 48 cents per share. Revenuefrom domestic sales was up 23%, while Asian marketsincreased revenues 65%.

Meanwhile, Hyperion Solutions Corp. reported modest earningsfor its third quarter, ended March 31, with revenue rising15% over the same period last year. The business-intelligence vendor reported revenue of $101.6 million forits third quarter, compared with $88.8 million during thethird quarter of 1998. Net income was $2.6 million, or 8cents per share. Revenue for the first three quarters offiscal 1999 totaled $313.5 million.

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