Gateway Communications Projects Lower Earnings

Gateway Communications Inc. of Irvine said it expects earnings for the second quarter to be lower than the $321,000 in net earned reported a year earlier. Revenue for the period is expected to increase by 20% to about $3.2 million from $2.7 million in the second quarter of 1986.

Higher operating costs caused by expanded product development and sales activity are responsible for the dip in net earnings, the company said. Gateway, formed in 1981, designs, manufactures and markets networking and communications products for IBM and IBM-compatible personal computers.