RealTime IT News

Gateway to File 10K By Tax Day

Personal computer company Gateway is delaying the filing its annual report with the Securities and Exchange Commission until April 15th so it can review its accounting for bundled AOL Internet services in 2000 and the first quarter of 2001, the company said.

The delay is also related to a previously announced SEC investigation regarding its fiscal year 2000 financial statements; Gateway said the delay in filing its financial statements would not affect its 2002 statements.

Gateway said it has revised its net sales and cost of goods sold (COGS) by equivalent amounts in each period for the year ended December 31, 2000 and for the first quarter of 2001. The revision is related to how the company accounted for bundled AOL Internet services, which it previously had reported on a gross basis.

As a result of the delay in filing, Gateway said it expects to report that its full-reduced year 2000 net sales and COGS were reduced by about $340 million to approximately $9.26 billion and $7.20 billion respectively. That's about a 3.5 percent revision to previously reported net sales as a result of the revision to the AOL accounting, Gateway said.

In addition, full-year 2001 net sales and COGS were reduced by approximately $130 million to approximately $5.95 billion and $5.11 billion respectively, representing a 2.2 percent revision to previously reported net sales, Gateway said. Full details will be forthcoming in the annual report, which will be out on or by April 15th.