Gateway attributed a 16 percent increase in sales and an 8 percent boost in net income to the recent launch of its customized Your:)Ware program. Sales were up, from $1.39 billion to $1.62 billion, for the second quarter ended June 30 compared to the same period a year ago, the company announced late last month. Additionally, net income rose for the period, from $55.9 million to $60.7 million.
Since Your:)Ware debuted in May, the program has generated a 60 percent sales mix of all units sold. Additionally, it drove new sales calls by 80 percent and increased units shipped by 48 percent in June compared to a year ago.
“The quality of our products and services is driving demand as seen by the successful introduction of our Your:)Ware program,” said Jeff Weitzen, president and chief operating officer at Gateway.
The computer purchase plan lowers the cost barriers of buying a PC, provides unlimited Internet access and protects against technology obsolescence. The company also recently introduced a new product to its lineup with the 3Dfx Voodoo2 technology for its G-series interactive 3-D gaming platform.
Additionally, the company is forging ahead with plans for a new facility in Salt Lake City that will add 300 client relations positions and sales and sales support representatives. Gateway, North Sioux City, SD, expects to have the 26,000-square-foot facility operational by Sept. 4. The company expects to grow the employee base to somewhere between 700 and 1,000 employees by year's end.