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GATEWAY COMMUNICATIONS ANNOUNCES 1992 THIRD QUARTER RESULTS

 GATEWAY COMMUNICATIONS ANNOUNCES 1992 THIRD QUARTER RESULTS
 IRVINE, Calif., Oct. 28 /PRNewswire/ -- Gateway Communications Inc. (NASDAQ-NMS: GWAY) announced today the results of operations for the third quarter ended Sept. 30, 1992. For the three months ended Sept. 30, 1992, the company reported net income of $59,000, or $0.01 per share, compared to $239,000, or $0.05 per share, for the same quarter in 1991, and total revenues of $4.4 million vs. $5.9 million in the comparable quarter of 1991.
 For the nine months ended Sept. 30, 1992, the company reported net income of $515,000, or $0.10 per share, compared to $750,000, or $0.15 per share, for the same period in 1991, and total revenues of $16.4 million vs. $17.8 million in the comparable period of 1991. Exclusive of the restructuring charge of $206,000 in the second quarter of 1992, pre-tax income would have been $1.0 million, compared to $1.2 million for the comparable nine-month period in 1991.
 "Severe competitive price pressure on Ethernet Local Area Network (LAN) adapter products for personal computers (PCs) forced Gateway to reduce prices in the third quarter of 1992," stated Dr. Patrick F. Cadigan, chairman and chief executive officer. "Further, a major OEM/distributor is continuing to experience financial difficulty. These factors, along with a difficult economy resulting in a slowdown in orders, particularly in Europe, have had a negative effect on third-quarter sales and profits. Gateway has reduced costs, streamlined operations, and is focusing its research and development efforts on developing new products to penetrate high-growth segments of the remote LAN access subsystem market."
 Recently the company has announced LAN Expander(TM), the first product in a planned series of integrated remote LAN access subsystems. LAN Expander's unique software allows remote laptop or PC users to access a central LAN under various connectivity options. In addition, the company has recently announced Simple Network Management Protocol (SNMP) support for its successful G/Ethertwist 8-port Hub product line and a UNIX driver for its LAN adapter product line. These and future product offerings and enhancements are designed to simplify and improve the PC user's needs to connect and communicate with others.
 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 Ave., Irvine, CA 92714; telephone: 714-553-1555.
 GATEWAY COMMUNICATIONS INC.
 Summary of Unaudited Consolidated Financial Results
 (In thousands, except per-share results)
 Three months ended Sept. 30,
 1992 1991
 Total revenues $4,417 $5,924
 Operating costs and expenses 4,344 5,593
 Income before taxes 73 331
 Net income 59 239
 Net income per share $0.01 $0.05
 Weighted average number of
 shares and share equivalents
 used in computing per share
 amounts 5,005 4,946
 Nine months ended Sept. 30,
 1992 1991
 Total revenues $16,411 $17,813
 Operating costs and expenses 15,411 16,636
 Restructuring charge 206 ---
 Income before taxes 794 1,177
 Net income 515 750
 Net income per share $0.10 $0.15
 Weighted average number of
 shares and share equivalents
 used in computing per share
 amounts 4,984 4,888
 Balance Sheet Highlights
 as of Sept. 30,
 1992 1991
 Total assets $11,041 $10,780
 Working capital 7,799 7,276
 Shareholders' equity 8,397 8,321
 -0- 10/28/92
 /CONTACT: Kirk E. Andrews, CFO of Gateway Communications, 714-553-1555, or (fax) 714-553-1616/
 (GWAY) CO: Gateway Communications Inc. ST: California IN: CPR SU: ERN


BP-KJ -- LA050 -- 6337 10/28/92 19:20 EST
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