PC MANUFACTURER GATEWAY Inc. recorded a net loss of US$520 million for its third quarter, on revenue of $1.4 billion, the company said in a statement Thursday.

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Most of the loss was caused by special charges incurred for closing international operations, call centers and manufacturing operations, and writing down the value of a number of the companys investments, the company said in a statement.

Without the special charges, the pretax loss would have been $83 million, or $0.17 per share, in line with the company's expectations, Gateway said.

Revenue for the quarter was 9 percent lower than the $1.5 billion recorded in the second quarter, as the worldwide PC market continues to struggle.

Gateway's PC unit shipments in the U.S. for the quarter rose 3 percent from 798,000 to 818,000 and would have been higher had it not been for a fall in demand after the Sept. 11 attacks on the U.S., Gateway said.

Gateway expects to return to pretax profitability in the fourth quarter, with the arrival of Windows XP-based systems expected to boost sales and with the company having absorbed charges related to restructuring, according to the statement.

Gateway, in North Sioux City, South Dakota, can be reached at +1-605-232-2000 or http://www.gateway.com/.