Gateway 2000 last week reported second quarter earnings of $56.5 million (#35.3 million), a 10% increase on the same quarter a year ago.
Separately, president and chief operating officer, Richard Snyder resigned to head a venture capital company.
Snyder will continue to serve on Gateway's board of directors and a search for his successor was launched at the end of last week.
The PC maker credited a 31% increase in systems shipped for a 23% increase in second quarter revenues, which stood at $1.4 billion.
Ted Waitt, Gateway's chairman and CEO, commented: "As we indicated last month, the quarter would come in like a lamb and go out like a lion and we built inventories and infrastructure accordingly. Demand did not accelerate as fast as we thought until the end of the quarter, resulting in higher-than-desired inventory levels. We plan to work the inventory down to more favourable levels in the second half of the year."
Also reporting last week were Digital and IBM. For the fourth quarter ended 28 June, Digital reported net income of $124 million compared with a net loss of $433 million the year before.
Chairman Robert Palmer said: "I am convinced Digital is in the best position since the mid-1980s to take advantage of current and emerging market opportunities." For the year-end, net income was $141 million, compared to a $112 million loss in 1996, and revenues stood at $13 billion, down from $14.6 billion.
IBM showed a modest 4% rise in second quarter revenues to $18.9 billion, while profits were $100 million ahead at $1.4 billion.
Yeah, sorry about all that, simpers Zuckerberg
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