Tuesday, April 1, 2003
Gateway said it will seek an 15-day extension from the Securities and Exchange Commission for filing its 2002 annual report. Gateway said that it needed more time to review its accounting because of an SEC investigation of its 2000 financials and changes in software-bundling fees received from America Online.
Gateway and AOL have been disputing fees that the Internet company paid Gateway for bundling its AOL service on Gateway PCs. The PC maker took a 3 cent charge against its fourth-quarter 2002 earnings to cover fees it said were withheld by AOL. But the accounting changes pertain to earlier financial statements.
The PC company expects to report that for 2000, its net sales and its cost of goods sold were reduced by about $340 million, to $9.26 billion and $7.2 billion, respectively. Net sales and cost of goods sold in 2001 were reduced by about $130 million, to $5.95 billion and $5.11 billion, respectively.
The revisions do not affect previously reported gross profit, operating income or loss, or net income or loss per share. Gateway's 2002 earnings will not be affected by any of the restatements, the company said.
By: DocMemory
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