GATEWAY
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share amounts)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
1998 1997 1998 1997
------------ ------------ ----------- ----------
Net sales $1,618,909 $1,392,658 $3,346,837 $2,811,994
Cost of goods sold 1,285,221 1,132,300 2,676,655 2,285,843
------------ ------------ ----------- ----------
Gross profit 333,688 260,358 670,182 526,151
Selling, general
and administrative
expenses 249,699 180,507 476,992 351,422
------------ ------------ ----------- ----------
Operating income 83,989 79,851 193,190 174,729
Other, net (10,917) (6,382) (20,265) (14,583)
------------ ------------ ----------- ----------
Income before
income taxes 94,906 86,233 213,455 189,312
Provision for income
taxes 34,166 29,750 76,844 65,313
------------ ------------ ----------- ----------
Net income $60,740 $56,483 $136,611 $123,999
============ ============ =========== ==========
Net income per share:
Basic $0.39 $0.37 $0.88 $0.81
============ ============ =========== ==========
Diluted $0.38 $0.36 $0.86 $0.79
============ ============ =========== ==========
Diluted weighted
average shares
outstanding 158,887 156,231 158,231 156,101
============ ============ =========== ==========
GATEWAY
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands)
June 30, 1998 December 31, 1997
---------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $799,608 $593,601
Marketable securities 92,243 38,648
Accounts receivable, net 528,340 510,679
Inventory 154,823 249,224
Other 168,336 152,531
---------------- -----------------
Total current assets 1,743,350 1,544,683
Property, plant and equipment, net 378,354 336,469
Internal use software costs, net 36,457 39,998
Intangibles, net 74,174 82,590
Other assets 44,051 35,531
================ =================
$2,276,386 $2,039,271
================ =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current
maturities of long-term
obligation $15,122 $13,969
Accounts payable 523,074 488,717
Accrued liabilities 321,137 271,250
Accrued royalties 161,226 159,418
Other current liabilities 56,062 70,552
------------ -----------
Total current liabilities 1,076,621 1,003,906
Long-term obligations, net of current
maturities 1,793 7,240
Warranty and other liabilities 95,845 98,081
------------ -----------
Total liabilities 1,174,259 1,109,227
------------ -----------
Stockholders' equity
Common stock 1,556 1,541
Additional paid-in-capital 336,659 299,483
Retained earnings 771,120 634,509
Other (7,208) (5,489)
-------------- -----------
Total stockholders'
equity 1,102,127 930,044
============== ===========
$2,276,386 $2,039,271
============== ===========
|