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Management Shakeup Costs Gateway: Page 2 of 2

This is just the latest in a long line of management changes for the company. Gateway overhauled its partner programs last year and turned over much of its senior management between Fall 2002 and early 2003. Waitt himself left the company for a year before returning as CEO in January 2001, but none of the people he named to his management team then are on the roster of current senior executives.

After remaking itself from a PC manufacturer into a provider of a comprehensive line of business and consumer products and solutions, Gateway surprised some observers with the acquisition of PC developer eMachines. But Sherbin says the acquired company's international strength and entry-level PCs are a perfect fit for Gateway. "One of our failings in recent years has been our inability to come up with a competitive system on the low end," he says. "eMachines has been able to do that very well."