After several recent struggles, PC and Consumer Electronics marker Gateway reported yesterday 4th quarter sales of $1.03 billion, about 12.5% higher than a year ago.

Last year Gateway acquired smaller vendor eMachines and from that point started making changes on the retail distribution for its product which has benefited sales considerably, now Gateway should be preparing to take on bigger manufacturers such as HP and Dell.

Gateway posted fourth-quarter net income of $93.9 million, or 23 cents per share, compared with a year-earlier net loss of $114.1 million, or 35 cents per share, which included restructuring charges.

Excluding a gain related to retirement of preferred stock held by AOL and restructuring charges and other items, Gateway said it would have earned 4 cents per share.