Gateway Will Add 3 Directors to Resolve Proxy Fight

Gateway Communications Inc., an Irvine-based computer company, said Monday that it has agreed to add to its board three directors who will be selected by one of its major shareholders, expanding the board to seven members. The agreement resolves a proxy fight threatened by Adage Inc. of West Chester, Pa., which last year bought 15% of Gateway’s outstanding common stock. “We wanted to avoid the cost and disruption of a proxy contest and possible litigation from either side,” said Kirk Andrews, chief financial officer of Gateway. On Friday, Gateway laid off 11 employees, representing 14% of its work force. At the same time, the company announced that it anticipated a net loss for the first quarter ended March 31.