IRVINE : Gateway Communications

Nature of business: Computer networking and communications products

Total employees: 47

In Orange County: 45

Stock listing in The Times: On Nasdaq “GtwyCm’ Ticker symbol: “GWAY”

Friday’s stock close: $0.88 One-week change: Down $0.12

Analyst review: “Gateway Communications ran into some major problems last year, in fact it announced in November that it had retained an investment banker to considering several options, including finding a buyer for the company. Evidently there have been some negotiations but no further announcements have been made. Gateway’s stock isn’t trading heavily, but the price is extremely steady. The trading history back to July of last year shows it at a low of three-fourths to a high of just over two dollars a share. It remains afloat, despite a third quarter loss. It will be interesting to see what develops for it over the next few months, especially with its LAN Expander products.”

-- Rich Weinstein, analyst Barber & Bronson, Ft. Lauderdale Revenue in millions of dollars ‘90: $25.0 ‘91: $24.0 ‘92: $21.0 3 quarters ‘92: $16.4 ‘93: $8.3 Profit in millions of dollars ‘90: 0.5 ‘91: 0.1 ‘92: 0.6 3 quarters ‘92: 0.5 ‘93: -1.8

Corporate outlook: “The results for the third quarter of 1993 reflect unrelenting price competition and margin pressure in the LAN adaptor market. Although we have recently made substantial staff and expense reductions, Gateway will continue to invest very selectively in research and development, including our LAN Expander products.” -- Dr. Patrick F. Cadigan, chairman/CEO

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE:

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 qtrs. 1990 1991 1992 1992 52-week high $2.25 $2.69 $2.81 $2.81 52-week low $0.75 $0.69 $0.69 $0.69 Book value per share $1.63 $1.63 $1.74 $1.71 Price per share $1.00 $1.38 $1.94 $1.50 Net profit per share $0.10 $0.01 $0.12 $0.10 Price-to-earnings ratio 10:1 162:1 10:1 N/A Avg. return on investor equity 6.3% 0.8% 7.0% 6.0%

Fiscal year ending 3 qtrs. 1993 52-week high $2.06 52-week low $0.75 Book value per share $1.37 Price per share $0.75 Net profit per share ($0.35) Price-to-earnings ratio N/A Avg. return on investor equity N/A

For more information call or write, Gateway Communications, Inc.: 2941 Alton Ave. Irvine, CA 92714. (714) 553-1555 Source: Gateway Communications, Inc.; Bloomberg Business News. Researched by JANICE L. JONES / Los Angeles Times