shares came under selling pressure Tuesday after the company admitted it overreported net sales related to bundled
Internet services in 2000 and 2001. Because of an accounting review now under way, it will delay the filing of its annual report by a couple of weeks.
This is the second time Gateway has revised its 2000 results. The PC vendor announced in March 2001 that it would restate results for the first three quarters of that year due to an accounting change.
On a day most tech stocks climbed higher, Gateway lost 7 cents, or 3%, to $2.29.
Gateway first disclosed in November that the
Securities and Exchange Commission
was investigating its fiscal-year 2000 financial statements.
The restatement, though, results from how Gateway accounted for bundled AOL Internet services in 2000 and the first quarter of 2001.
Previously it had reported the bundled services on a gross basis, but current management has decided it would be "more appropriate" to report the amounts on a net basis, the company said. The revisions won't change already-reported gross profit or net income or loss per share.
Following its review, Gateway expects to report full-year 2000 sales of $9.26 billion, down 3.5% from what it had reported at the time. Full-year 2001 net sales will be reduced by 2.2% to about $5.95 billion.
The company said financial statements for 2002 won't be affected by the review.