For the quarter, the company posted a 68% increase in operating revenues to $3.70 million for the period ended March 31, 2008 from $2.19 million for the period ended March 31, 2007.
Operations and maintenance expenses increased from $121,613 for the quarter ended March 31, 2007 to $261,015 for the same period in 2008. Interest expense increased from $5,987 for the period ended March 31, 2007 to $43,687 for the period ended March 31, 2008.
Robert Panico, president and CEO of Gateway, said: Although we were disappointed with our small net loss for the quarter, we are encouraged by a number of other factors. We realized a significant increase in operating margins that should continue to improve as the year progresses.
We recently renegotiated sales and purchase contracts related to the Waxahachie system which should increase our gross margins by approximately 30%; however, these increases did not take effect until March 1, 2008.
