Gateway Delays Q2 Earnings Report For Second Time In Week
By Doug Olenick -- TWICE, 8/8/2005
Irvine, Calif. — For the second time in a week Gateway Computers has postponed releasing its second-quarter financial report.
Gateway again cited the need to better clarify how it will spend a $150 million settlement it received from Microsoft as the reason for the delay. The company's second-quarter earnings were originally slated for release on July 29; the report is expected to be issued in conjunction with the firm's 10-Q on or before Aug. 15.
“Because of the complex accounting interpretation issues related to our agreement with Microsoft, we voluntarily made a pre-filing submission seeking the SEC's [Security and Exchange Commission] guidance to ensure we apply proper accounting treatment,” said Rod Sherwood, Gateway's senior VP/chief financial officer.
The SEC issued guidelines to Gateway stating that the settlement can be spent only on sales and marketing initiatives, points that Gateway has yet to fully flesh out. Sherman did say any changes will only add funds to the company's bottom line.
