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GATEWAY COMMUNICATIONS ANNOUNCES 1992 SECOND QUARTER RESULTS

 GATEWAY COMMUNICATIONS ANNOUNCES 1992 SECOND QUARTER RESULTS
 IRVINE, Calif., July 23 /PRNewswire/ -- Gateway Communications, Inc. (NASDAQ-NMS: GWAY) announced today the results of operations for the second quarter ended June 30, 1992. For the three months ended June 30, 1992, the company reported net income of $48,000, or $0.01 per share, compared to $180,000, or $0.04 per share for the same quarter in 1991, and total revenues of $5.3 million, vs. $5.5 million in the comparable quarter of 1991. Impacting the second quarter 1992 results was a pre-tax restructuring charge of $206,000, consisting primarily of severance expenses related to staff reductions of approximately 18 percent of the company's workforce. Exclusive of the restructuring charge, the company's second quarter pre-tax income would have been $281,000, compared to $301,000 for the comparable quarter of 1991.
 For the six months ended June 30, 1992, the company reported net income of $456,000, or $0.09 per share, compared to $511,000, or $0.11 per share for the same period in 1991, and total revenues of $12.0 million, vs. $11.9 million in the comparable period of 1991. Exclusive of the restructuring charge of $206,000 in 1992, pre-tax income would have been $927,000 compared to $846,000 for the comparable six-month period in 1991.
 "The company's Ethernet LAN adapter products experienced intense price pressure in the second quarter of 1992," stated Dr. Patrick F. Cadigan, chairman and chief executive officer. "Gateway responded by reducing staff and LAN adapter prices. Further, during the second quarter, a major OEM/distributor experienced cash flow difficulties which delayed shipments. The company is positioning itself to address a market where price pressure and new product competition is a way of life."
 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 70 countries worldwide. Corporate and international headquarters are located at 2941 Alton Avenue, Irvine, CA, 92714, telephone 714-553-1555.
 GATEWAY COMMUNICATIONS INC.
 Summary of Unaudited Consolidated Financial Results
 (In thousands, except per share results)
 1992 1991
 Three months ended June 30:
 Total revenues $5,326 $5,540
 Operating costs and expenses 5,045 5,239
 Restructuring charge 206 ---
 Income before taxes 75 301
 Net income 48 180
 Net income per share $0.01 $0.04
 Weighted average number of
 shares and share equivalents
 used in computing per share
 amounts 4,875 4,947
 Six months ended June 30:
 Total revenues $11,994 $11,889
 Operating costs and expenses 11,067 11,043
 Restructuring charge 206 ---
 Income before taxes 721 846
 Net income 456 511
 Net income per share $0.09 $0.11
 Weighted average number of
 shares and share equivalents
 used in computing per share
 amounts 4,907 4,863
 Balance sheet highlights
 as of June 30:
 Total assets $10,826 $10,409
 Working capital 7,702 7,053
 Shareholders' equity 8,251 8,064
 -0- 7/23/92
 /CONTACT: Kirk E. Andrews, CFO of Gateway Communications, 714-553-1555/
 (GWAY) CO: Gateway Communications Inc. ST: California IN: CPR SU: ERN


KJ-EH -- LA043 -- 2859 07/23/92 20:17 EDT
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Date:Jul 23, 1992
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