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GATEWAY COMMUNICATIONS ANNOUNCES SECOND QUARTER RESULTS

 IRVINE, Calif., July 30 /PRNewswire/ -- Gateway Communications Inc. (NASDAQ-NMS: GWAY) announced today the results of operations for the second quarter ended June 30, 1993. For the three months ended June 30, 1993, the company reported a net loss of ($586,000), or ($0.12) per share, on total revenues of $2.55 million. Impacting the results for the second quarter of 1993 was a pre-tax charge of $360,000 representing an accrual for estimated damages and costs related to a tentative court decision to enter a judgment against the company in its lawsuit with CECORP. In the comparable quarter of 1992, net income was $48,000, or $0.01 per share, on total revenues of $5.33 million. For the six months ended June 30, 1993, the company reported a net loss of ($1,060,000), or ($0.21) per share, on total revenues of $5.84 million, compared to net income of $456,000, or $0.09 per share, on total revenues of $11.99 million in the comparable period of 1992.
 "The results for the second quarter of 1993 continue to reflect a reduction in demand along with tremendous price competition and margin pressure in the LAN adapter market," stated Dr. Patrick F. Cadigan, chairman and chief executive officer. "In addition, our operating results have been affected by the accrual for the adverse tentative court decision and reflect higher than normal legal fees. The company will be assessing its options, including a potential appeal of the decision when the final statement of decision is issued and judgment is entered. For the future, we continue to invest in the development and promotion of our LAN Expander(TM) family of remote access products, which allow remote PC users to dial into and access local area networks."
 Gateway Communications Inc. develops, manufactures, and markets a full range of networking and communications products for IBM and compatible PCs. Gateway products are sold in more than 45 countries worldwide. Corporate and international headquarters are located at 2941 Alton Ave., Irvine, CA 92714; telephone: 714-553-1555.
 GATEWAY COMMUNICATIONS INC.
 Summary of Unaudited Consolidated Financial Results
 (In thousands, except per share results)
 1993 1992
 Three Months Ended June 30:
 Total revenues $2,546 $5,326
 Operating costs and expenses 3,023 5,045
 Other 360 206
 (Loss) income before taxes (837) 75
 Net (loss) income (586) 48
 Net (loss) income per share ($0.12) $0.01
 Weighted average number of shares
 and share equivalents used in
 computing per-share amounts 5,052 4,875
 Six Months Ended June 30:
 Total revenues $5,843 $11,994
 Operating costs and expenses 6,879 11,067
 Other 478 206
 (Loss) income before taxes (1,514) 721
 Net (loss) income (1,060) 456
 Net (loss) income per share ($0.21) $0.09
 Weighted average number of shares
 and share equivalents used in
 computing per-share amounts 5,032 4,907
 June 30, Dec. 31,
 1993 1992
 Balance Sheet Highlights:
 Total assets $9,447 $10,848
 Working capital 6,990 7,948
 Shareholders' equity 7,695 8,672
 -0- 7/30/93
 /CONTACT: Kirk E. Andrews, CFO of Gateway Communications, 714-553-1555/
 (GWAY)


CO: Gateway Communications Inc. ST: California IN: CPR SU: ERN

MF-JB -- LA024 -- 7991 07/30/93 18:05 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
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