Gateway Inc. reported Monday that 2006 income was more than $2.5 million better than previously stated thanks to a tax settlement.
The company said a tax benefit related to European operations prior to 2002 pushed year-end income to $9.6 million for the year. Preliminary results released earlier this month showed net income of $6.9 million.
The Irvine-based computer maker also named industry veteran Dave Russell to its board, expanding the number of members to 10.
Russell is managing director at Avalon Energy Corp. and vice president of Avalon Capital Group Inc., which was founded by Ted Waitt, who started Gateway and still holds a significant stake in the company.
The appointment of Russell ends a long battle for control of the struggling computer company. Firebrand Partners LLC, which owns about 10.7% of Gateway, threatened to run its own board candidates after the company refused a buyout bid.
The dust-up led to the expansion of the board of directors. Scott Galloway, an associate professor at New York University and a managing member of Firebrand, was installed in December.
Firebrand signed off on Russell’s appointment.
