Gateway's spotted cow logo is almost as well known as its personal computers and related products. For the investor, finding information can be a little frustrating since, as of October, 2007, Gateway is a wholly-owned subsidiary of Acer, Inc. To find information on Gateway, you will need the stock symbol for Acer, rather than the stock symbol for Gateway Inc. Get that information along with an overview of Gateway, its history, and current operations. Look under Resources for more information.
Identification
Until 2007, Gateway was an NYSE listed company, but is now part of Taiwan-based Acer Incorporated. Acer stock is listed on the Taiwan Stock Exchange with the code symbol 2353. For foreign investors, Acer stock is traded on the London Stock Exchange in the form of Global Depository Receipts (GDRs). For the London Stock Exchange, the Bloomberg symbols are 2353TT (stock) and ACID LI (GDRs) and for Reuters use 2353TW (stock) and 2306qL (GDRs).
History
Gateway began in 1985 in an almost mythic rags-to-riches story. The company was brainchild of founder Ted Waitt, who began with a $10,000 loan co-signed by his grandmother. Originally based in Sioux Falls, North Dakota, Gateway grew quickly and in 1993 became one of the Fortune 500. In the same year, the company went public with stock listed on NASDAQ but moved to the NYSE in 1997. In 1998 Gateway shifted its headquarters to San Diego, California. The following year Gateway's online operations wee sold to AOL for $800 million. In 2004, they bought out another computer hardware company, eMachines, and again moved their headquarters to the present location in Irvine, California. By 2007, however, Gateway's fortunes had declined and they were no longer listed on the Fortune 500. The professional services part of the company was sold to MPC Corporation in September 2007 and the computer hardware portion merged with Acer, Inc. the following month.
Types
Gateway manufactures and markets personal computer systems for home and office. Their products include desktop PCs, laptops, notebook computers, and servers. They also manufacture a variety of peripheral devices, particularly LED ("flat-screen") monitors. The company remains strongly committed to environmental issues and promotes responsible disposal of old equipment, including a trade-in program on new equipment.
Size
The merger with Acer created a combined operation that is now the world's third-largest personal computer manufacturer. Gateway's sales in 2007 were $3.98 billion, giving Acer revenues of $14.07 billion.
Features
Gateway continues to function as a separate entity within the Acer Corporation and is still headquartered in Irvine, California. To date, Acer has not indicated that this will change and may plan to retain the well-recognized Gateway name. For investors seeking to buy stock, the easiest way is to do so is on the London Stock Exchange through NYSE/Euronext. Bear in mind that Acer common is traded on the LSE as GDRs. For Acer stock, one GDR is equal to 5 shares of common stock.
