GATEWAY COMMUNICATIONS ANNOUNCES REDUCTION IN FORCE
GATEWAY COMMUNICATIONS ANNOUNCES REDUCTION IN FORCE IRVINE, Calif., June 24 /PRNewswire/ -- Gateway Communications
Inc. (NASDAQ-NMS: GWAY) announced today that recent staff reductions have occurred representing approximately 20 people or 18 percent of its workforce.
These staff reductions were implemented because of recessionary business conditions that have impacted the company during the second quarter of 1992. Costs associated with these staff reductions have not yet been finalized. Revenues are expected to be significantly under the levels experienced during the first quarter of 1992 because of intense price competition in the Ethernet LAN adapter market, resulting in a general slowdown in orders from distributors. In addition, a major OEM/distributor customer has recently experienced financial difficulties which have reduced planned shipments during the second quarter. The company this week introduced new competitive pricing on its principal Ethernet LAN adapter products. The company expects that gross margins on these products will be lower until planned product cost reductions, anticipated to occur later this year, are realized. The company has not yet closed its second quarter which ends June 30, 1992, and expects that operating results for this quarter will be announced during the latter half of July 1992. -0- 6/24/92 /CONTACT: Kirk E. Andrews, VP-finance and CFO of Gateway Communications, 714-553-1555/ (GWAY) CO: Gateway Communications ST: California IN: CPR SU: PER JL-SE -- LA036 -- 3535 06/24/92 20:01 EDT
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|Date:||Jun 24, 1992|
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