GATEWAY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (in thousands, except per share amounts)
Three months ended September 30, Nine months ended September 30,
1998 1997 1998 1997
Net sales $1,815,516 $1,504,851 $5,162,352 $4,316,845
Cost of goods sold 1,437,709 1,309,601 4,114,363 3,595,444
Gross profit 377,807 195,250 1,047,989 721,401
Selling, general and administrative exp 264,452 219,258 741,445 570,680
Nonrecurring expenses - 113,842 - 113,842
Operating income (loss) 113,355 (137,850) 306,544 36,879
Other, net 12,653 5,612 32,918 20,195
Income (loss) before income tax 126,008 (132,238) 339,462 57,074
Provision (benefit) for income taxes 45,363 (25,125) 122,206 40,187
Net (loss) income $80,645 $(107,113) $217,256 $16,887
Net income (loss) per share:
Basic $0.52 $(0.70) $1.40 $0.11
Diluted $0.51 $(0.68) $1.37 $0.11
Diluted weighted average shares outstanding
GATEWAY CONSOLIDATED BALANCE SHEETS (Unaudited)(in thousands)
September 30, 1998 December 31, 1997
ASSETS
Current assets:
Cash and cash equivalents $871,351 $593,601
Marketable securities 132,156 38,648
Accounts receivable, net 559,538 510,679
Inventory 198,016 249,224
Other 183,816 152,531
Total current assets 1,944,877 1,544,683
Property, plant and equipment, net 416,044 336,469
Internal use software costs, net 37,704 39,998
Intangibles, net 69,924 82,590
Other assets 43,252 35,531
$2,511,801 $2,039,271
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current maturities $9,659 $13,969
Accounts payable 677,721 488,717
Accrued liabilities 347,466 271,250
Accrued royalties 114,183 159,418
Other current liabilities 63,977 70,552
Total current liabilities 1,213,006 1,003,906
Long-term obligations, net of current maturities 2,481 7,240
Warranty and other liabilities 100,025 98,081
Total liabilities 1,315,512 1,109,227
Stockholders' equity
Common stock 1,560 1,541
Additional paid-in-capital 349,101 299,483
Retained earnings 851,766 634,509
Other (6,138) (5,489)
Total stockholders' equity 1,196,289 930,044
$2,511,801 $2,039,271
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