Gateway Reports Profit of $48,000

Gateway Communications Inc., the Irvine computer-products company, reported a profit of $48,000, or 1 cent a share, for the second quarter. The results included $206,000 in severance payments and other expenses after the company reduced its work force by 18%. In the second quarter last year, the company posted a profit of $180,000, or 4 cents a share. Revenue for the latest period declined 4% to $5.3 million from $5.5 million. For the first half, net income totaled $456,000, or 9 cents a share, down 11% from the $511,000, or 11 cents a share, a year earlier. Revenue was up slightly to $12 million from $11.9 million.