Gateway’s heavy losses of one year ago seemed like a distant memory as they reported an impressive second-quarter profit on Monday - a profit of $17.2 million, or 5 cents a share, compared with a loss of $339 million, or 91 cents a share, a year ago. Gateway, who have shipped more than one million PCs during this last quarter, say their revenue rise to $873 million from $838 million.

Chief Executive Wayne Inouye was upbeat, saying the company has made "significant progress" in a traditionally slow quarter. "We have just started on a long journey," Inouye told reporters.
Still, Inouye said that competitive and gross-margin pressures had an impact on Gateway's perfromance during the quarter. Gross margins climbed to 10% from 1.9% a year ago.