THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, July 27, 1996 TAG: 9607270211
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: 62 lines
Gateway 2000 is unabashed about milking publicity from its mascot, the Holstein cow.
If you've never seen the computer maker's mascot before, you couldn't miss it Friday.
A plastic Holstein cow balloon - towering about 10 feet outside the company's newest entrance - greeted visitors to the grand opening of the firm's Hampton manufacturing plant. Gov. George F. Allen even played along, trying his hand at milking the mascot's bright pink udders.
The familiar black-and-white spots - symbolizing the Holstein and rural South Dakota, the land of Gateway's birth - weren't allowed on the $18 million plant's exterior because of design restrictions in the industrial park. But they were almost everywhere else.
The lobby wall. On shipping boxes. Coffee mugs. Paper pads. Even the trash Dumpster.
High hopes surround the firm, the largest direct marketer of computers in the country.
Heralded as the latest addition to the Peninsula's high-tech community, Gateway is expected to employ 1,000 people by the year 1999, when it reaches full capacity. It will then be the largest employer in Hampton.
``It's part of those high-tech companies coming to Virginia,'' said Allen, citing other corporate names like Motorola and IBM/Toshiba that have committed to millions in investment and facilities in the state.
Chairman and CEO Theodore Waitt said his company's investment in Hampton Roads is part of its long-term vision ``to deliver the most sought after computer in the world,'' one of Gateway's slogans.
Gateway already has hired 165 people to operate the 284,000-square-foot manufacturing and distribution facility. That number should reach between 250 and 350 in its first year, said plant manager Jeff Livak.
``Hampton represents a strategic move for us to build a closer relationship to the bulk of our customer base,'' said John d'Auguste, vice president of manufacturing. The facility will serve the East Coast and other customers east of the Mississippi River.
While other technology companies have watched their fortunes wane and stocks slump in recent months, Gateway executives remain upbeat. The company reported second-quarter earnings above Wall Street's expectations.
The North Sioux City, S.D.-based company this week reported net income of $51.4 million or 66 cents a share, up 48 percent from a year earlier of $34.8 million, or 44 cents a share. Revenue rose to $1.1 billion in the second quarter, compared to $766 million in the same period last year.
Company officials attribute their success to the swift fall in component prices, making it easier to pass the savings on to the consumer.
``In terms of market conditions, the direct model works extremely well because the component prices have come down so much,'' said James Wharton, director of investor relations for Gateway.
Many expect suppliers and other vendors to follow Gateway in locating in Hampton Roads. One vendor is already making plans to move to the area but is still looking for space, Livak said. ILLUSTRATION: Photo by LAWRENCE JACKSON, The Virginian-Pilot
Holstein spots, echoing the Midwestern roots of Gateway 2000, dot
the assembly line. by CNB