Cash-Poor Gateway Selling Some of Its Assets

Gateway Communications Inc., a maker of computer network products, said Wednesday that it will sell some of its businesses to Virginia-based Microdyne Corp. for $2.4 million.

Microdyne Corp., a competitor based in Alexandria, Va., will buy certain network adapter products, which allow for smoother data communication between computer networks.

The sale of the assets gives Gateway access to much-needed cash. The company tried to attract Conrac Technology, an electronics firm in La Puente, as a majority investor but that deal fell through last month.

A group of investors threatened to take control of Gateway’s board of directors in a proxy fight, but Gateway and the investors group reached an agreement last week that would give the group several seats on the Gateway board.