Gateway back in the black

Gateway reported a small profit for the second quarter of this year. According to the Q2 details released today, the company recorded a net income of $1.9 million on revenues of $841 million.

Compared to Q2 of 2006, revenues were down from $919 million, but a net loss of $7.7 million was turned into a profit. Sequentially, revenue was down from $1.0 billion in Q1, which brought a net loss of $8.6 million. The Q2 2007 result includes $8.6 million of income that was received as part of a settlement with Microsoft reached in 2005.

Gateway said that it was able to sell 1,088,400 PCs and its 50 millionth PC overall during the quarter - a result that has been driven especially by the firm’s advances in the retail business. A total of 938,700 PCs were shipped into the retail sector, down 14% sequentially and down 1% year-over-year. Retail revenue, however, grew to $614 million in Q2 2007, up from $592 million in the year-ago quarter.