Gateway Gaining Scale Under Acer Computers!!!

Gateway Inc. is getting used to its new Taiwanese patent, No. 3 PC maker Acer Inc. "There's been a lot of back and forth," Gateway Chief Executive Ed Coleman said. "It's going to take some time."

Coleman spoke at the kickoff event last week for a yearlong series hosted by the Paul Merage School of Business at the University of California, Irvine. He reflected on the past year at Gateway marked by increasing speculation about a buyout, tough going in Gateway's results, a laptop battery recall and job cuts.

"I joined a year ago September, really with the charter of bringing resolution to what had been an up and down period for the company for the past several years," Coleman said. "Through the course of the year we have made good progress. Our cost structure is much improved. We improved our earnings and introduced exciting products."

Last month, Acer Computers closed on its buy of Gateway's shares for $710 million. As a prelude to the deal, Gateway sold off its business selling computers to corporate customers for $90 million to Idaho's MPC Corp.

The short-term focus for the company is "a smooth and effective integration," Coleman said. According to Coleman, Gateway workers, including about 500 in Irvine, California, are pondering questions such as, "Which process is going to take precedence?" "How is the organization going to be structured over time?" "What does it mean for me personally?"

Acer is a good match for Gateway because the PC industry is one that "absolutely rewards scale, says one insider. Gateway paid an average of $7 more than HP and Dell for each Microsoft Corp., software license it bought, Coleman said.

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