POWAY, Calif., April 1 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE: GTW)
today announced that it intends to file a request with the Securities and
Exchange Commission seeking the permitted 15-day extension for filing its Form
10-K for the year ending December 31, 2002. The company anticipates that it
will file its Form 10-K on or before April 15.
(Photo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO )
The delay in the company's filing of its Form 10-K is primarily related to
its review of the accounting for bundled AOL Internet services in 2000 and the
first quarter of 2001, as well as matters related to the previously announced
SEC investigation, which is primarily related to fiscal year 2000 financial
statements. Gateway's financial statements for 2002 will not be affected.
The company has revised its net sales and cost of goods sold (COGS) by
equivalent amounts in each period for the year ended December 31, 2000 and for
the first quarter of 2001. The revision is related to how the company
accounted for bundled AOL Internet services, which it previously had reported
on a gross basis. Current management has determined that it is more
appropriate to present such amounts on a net basis. These revisions do not
affect previously reported gross profit, operating income (loss) or net income
(loss) per share. The company modified its contract with AOL in the first
quarter of 2001, after which it no longer reported such net sales and COGS on
a gross basis.
Gateway expects to report that full-year 2000 net sales and COGS were
reduced by approximately $340 million to approximately $9.26 billion and
$7.20 billion respectively, representing a 3.5 percent revision to previously
reported net sales as a result of the revision to the AOL accounting.
Full-year 2001 net sales and COGS were reduced by approximately $130 million
to approximately $5.95 billion and $5.11 billion respectively, representing a
2.2 percent revision to previously reported net sales.
Additional information will be available when the company files its Form
10-K.
About Gateway
Gateway, Inc. (NYSE: GTW), a personal technology company, improves
people's lives through a combination of the latest and best hardware,
communication tools, applications, training and service, all offered with a
custom-financing package. The company takes a localized approach: utilizing
its Web site, call centers and nationwide network of Gateway retail stores to
build direct relationships with consumers, small and medium businesses and
government and educational institutions. In 2003, Gateway was named the
second most admired American company in the computer industry by Fortune
magazine(1). In 2002, Gateway's products and services received more than
90 awards and accolades and the company's retail stores outperformed its
competitors in a "mystery shopper" comparison(2). For more information, visit
Gateway's Web site at http://www.gateway.com .
(1) Source: Fortune magazine, March 3, 2003 issue.
(2) Source: Computer Shopper magazine, February 2003 issue.
Special Note
This press release contains forward-looking statements that involve risks
and uncertainties, as well as assumptions that, if they do not materialize or
prove incorrect, could cause Gateway's results to differ materially from those
expressed or implied by such forward-looking statements. All statements,
other than statements of historical fact, are statements that could be deemed
forward-looking statements, including any projections or preliminary estimates
of earnings, revenues, or other financial items; any statements of plans,
strategies and objectives of management for future operations; any statements
regarding proposed new products, services or developments; any statements
regarding future economic conditions or performance; statements of belief and
any statement of assumptions underlying any of the foregoing. The risks that
contribute to the uncertain nature of these statements include, among others,
competitive factors and pricing pressures, including the impact of aggressive
pricing cuts by larger competitors; general conditions in the personal
computing industry, including changes in overall demand and average selling
prices, shifts from desktops to mobile computing products and information
appliances and the impact of new microprocessors and operating software; the
ability to transform the company to a technology solutions provider and
restructure its operations and cost structure; component supply shortages;
short product cycles; the ability to access new technology; infrastructure
requirements; risks of international business; foreign currency fluctuations;
ability to grow in e-commerce; risks of minority equity investments; risks
relating to new or acquired businesses, joint ventures and strategic
alliances; risks related to financing customer orders; changes in accounting
rules; the impact of litigation and government regulation generally; inventory
risks due to shifts in market demand; changes in product, customer or
geographic sales mix; the impact of employee reductions and management changes
and additions; and general economic conditions, and other risks described from
time to time in Gateway's Securities and Exchange Commission periodic reports
and filings. Gateway assumes no obligation to update these forward-looking
statements to reflect events that occur or circumstances that exist after the
date on which they were made.
SOURCE Gateway, Inc.
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Related links:
http://www.gateway.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT:
media, Robert Sherbin, +1-858-848-3886,
robert.sherbin@gateway.com , or investors, Marlys Johnson,
+1-605-232-2709, marlys.johnson@gateway.com , both of Gateway,
Inc.
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