Apple Reports Fourth Fiscal Quarter Results
PR Newswire - October 15, 1997 16:20
AAPL %CPR %MLM %ERN V%PRN P%PRN
ÿÿÿÿÿÿÿ * Quarterly sales to U.S. education customers top $500 million
ÿÿÿÿÿÿÿ * Company progresses with cost-cutting initiatives
ÿÿÿÿÿÿÿ * Quarterly loss before special charges half that of prior quarter
ÿÿÿ CUPERTINO, Calif., Oct. 15 /PRNewswire/ -- Apple Computer, Inc.
(Nasdaq: AAPL) today announced results of its fourth fiscal quarter ended
Sept. 26, 1997. For the quarter, Apple's revenues were $1.6 billion, a
decrease of 30 percent from the fourth quarter a year ago, and a sequential
decrease of 7 percent from the quarter ended June 27, 1997. International
revenues represented 42 percent of the quarterly total. Gross margins were
20 percent, compared to 22 percent in the year ago quarter and 20 percent in
the June 1997 quarter.
ÿÿÿ The Company continued to lower its break-even level by reducing recurring
operating expenses to $353 million in the fourth quarter, compared to
$505 million in the year-ago-quarter and $408 million in the June quarter.
ÿÿÿ Also included in the current quarter's results were a $62 million charge
to increase the Company's restructuring reserves, as well as a $75 million
write-off related to the Company's purchase of theÿ Mac OS license from Power
Computing Corporation.
ÿÿÿ The Company's net loss for the quarter was $161 million, or $(1.26) per
share, compared with a net profit of $25 million, or $.20 a share, in the same
quarter a year ago. Without the charges related to restructuring and the Power
Computing transaction, the Company's net loss for the quarter would have been
$24 million, or $(.19) per share, a sequential improvement from the
$56 million net loss, or $(.44) per share, posted in the June quarter.
ÿÿÿ "Apple's fourth fiscal quarter was marked by sweeping changes, from the
resignation of our CEO to the installation of new board members to significant
developments in our marketing programs and industry relationships," said Apple
Chief Financial Officer Fred Anderson. "Amidst this change, we've continued to
make excellent progress with our restructuring initiatives, having reduced
quarterly operating expenses of a recurring nature by an additional
$55 million since the June quarter."
ÿÿÿ "The July introduction of Mac OS 8 has resulted in record sales, covering
two million seats to date," added Anderson. "Our U.S. education business
contributed over half a billion dollars in revenues during the quarter, and we
saw sequential improvement in both business and consumer sales in the U.S.
However, we were disappointed by sluggish demand outside the U.S.,
particularly in Japan.
ÿÿÿ "We remain focused on our primary goal of returning Apple to sustainable
profitability," said Anderson. "Our goal for fiscal 1998 is to continue to
reduce Apple's break-even point through a combination of further expense
reductions and gross margin improvements."
ÿÿÿ For the Company's fiscal year ended Sept. 26, 1997, revenues were
$7.1 billion, a 28 percent decrease from the prior year. The net loss for the
year was $1.0 billion, or $(8.29) per share, compared with a net loss of $816
million, or $(6.59) per share, in fiscal 1996. Included in the fiscal 1997
loss were restructuring charges of $217 million as well as $450 million in
write-offs related to the acquisition of Next Software, Inc. and the purchase
of the Mac OS license from Power Computing Corporation.
ÿÿÿ For the year, international revenues accounted for 50 percent of Apple's
net sales, compared to 52 percent in fiscal 1996.
ÿÿÿ The statements regarding the goals of reducing the break-even level and
returning the Company to sustainable profitability are forward-looking and
involve risks and uncertainties. Potential risks and uncertainties include,
without limitation, continued competitive pressures in the marketplace; the
effect competitive factors and the Company's reaction to them may have on
consumer and business buying decisions with respect to the Company's products;
the consequences competitive factors and buying decisions may have on current
inventory valuations; the ability of the Company to make timely delivery of
successful technological innovations to the marketplace; the effect of any
future losses on the Company's needs for liquidity; the effect of the
announced business restructuring on the future performance of the Company,
especially the performance of the Company's employees; and the need for any
future restructuring, and the effect that it might have on the performance of
the Company. More information on potential factors that could affect the
Company's financial results is included in the Company's Form 10-Q for the
third fiscal quarter and will also be included in the Company's Form 10-K for
the 1997 fiscal year, to be filed with the SEC.
ÿÿÿ Apple Computer, Inc. ignited the personal computer revolution in the 1970s
with the Apple II, and reinvented the personal computer in the 1980s with the
Macintosh. Apple is now recommitted to its original mission -- to bring the
best personal computing products and support to students, educators,
designers, scientists, engineers, businesspersons and consumers in over
140 countries around the world.
ÿÿÿ Apple's home page on the World Wide Web is: apple.com
ÿÿÿ NOTE:ÿ Apple, the Apple logo, Mac OS, and Macintosh, are registered
trademarks of Apple Computer, Inc. Additional company and product names may be
trademarks or registered trademarks of the individual companies and are
respectfully acknowledged.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ APPLE COMPUTER, INC.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ CONSOLIDATED STATEMENTS OF OPERATIONS
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (Dollars in millions, except per share amounts)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ THREE MONTHS ENDEDÿÿÿÿÿÿ TWELVE MONTHS ENDED
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Sept. 26,ÿÿÿÿ Sept. 27,ÿÿ Sept. 26,ÿÿÿÿÿ Sept. 27,
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1997ÿÿÿÿÿÿÿÿÿÿ 1996ÿÿÿÿÿ 1997ÿÿÿÿÿÿÿÿÿÿ 1996
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (Unaudited)ÿÿÿ (Unaudited)
ÿÿÿ Net salesÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $1,614ÿÿÿÿÿÿÿ $2,321ÿÿÿÿÿÿ $7,081ÿÿÿÿÿÿÿ $9,833
ÿÿÿ Costs and expenses:
ÿÿÿ Cost of salesÿÿÿÿÿÿÿÿÿÿÿ 1,294ÿÿÿÿÿÿÿÿ 1,810ÿÿÿÿÿÿÿ 5,713ÿÿÿÿÿÿÿÿ 8,865
ÿÿÿ Research and developmentÿÿÿ 94ÿÿÿÿÿÿÿÿÿÿ 146ÿÿÿÿÿÿÿÿÿ 485ÿÿÿÿÿÿÿÿÿÿ 604
ÿÿÿ Selling, general and
ÿÿÿÿ administrativeÿÿÿÿÿÿÿÿÿÿÿ 259ÿÿÿÿÿÿÿÿÿÿ 359ÿÿÿÿÿÿÿ 1,286ÿÿÿÿÿÿÿÿ 1,568
ÿÿÿ Special charges:
ÿÿÿ In-process research and
ÿÿÿÿ developmentÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ --ÿÿÿÿÿÿÿÿÿÿÿ --ÿÿÿÿÿÿÿÿÿ 375ÿÿÿÿÿÿÿÿÿÿÿ --
ÿÿÿ Restructuring costsÿÿÿÿÿÿÿÿ 62ÿÿÿÿÿÿÿÿÿ (28)ÿÿÿÿÿÿÿÿÿ 217ÿÿÿÿÿÿÿÿÿÿ 179
ÿÿÿ Termination of license
ÿÿÿÿ agreementÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 75ÿÿÿÿÿÿÿÿÿÿÿ --ÿÿÿÿÿÿÿÿÿÿ 75ÿÿÿÿÿÿÿÿÿÿÿ --
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,784ÿÿÿÿÿÿÿÿ 2,287ÿÿÿÿÿÿÿ 8,151ÿÿÿÿÿÿÿ 11,216
ÿÿÿ Operating income (loss)ÿ (170)ÿÿÿÿÿÿÿÿÿÿÿ 34ÿÿÿÿÿ (1,070)ÿÿÿÿÿÿ (1,383)
ÿÿÿ Interest and other income
ÿÿÿÿ (expense), netÿÿÿÿÿÿÿÿÿÿÿÿÿ 9ÿÿÿÿÿÿÿÿÿÿÿÿ 6ÿÿÿÿÿÿÿÿÿÿ 25ÿÿÿÿÿÿÿÿÿÿÿ 88
ÿÿÿ Income (loss) before
ÿÿÿÿ provision for
ÿÿÿÿ income taxesÿÿÿÿÿÿÿÿÿÿÿ (161)ÿÿÿÿÿÿÿÿÿÿÿ 40ÿÿÿÿÿ (1,045)ÿÿÿÿÿÿ (1,295)
ÿÿÿ Provision for income
ÿÿÿÿ taxesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ --ÿÿÿÿÿÿÿÿÿÿÿ 15ÿÿÿÿÿÿÿÿÿÿ --ÿÿÿÿÿÿÿÿ (479)
ÿÿÿ Net income (loss)ÿÿÿÿÿÿ $(161)ÿÿÿÿÿÿÿÿÿÿ $25ÿÿÿÿ $(1,045)ÿÿÿÿÿÿÿ $(816)
ÿÿÿ Earnings (loss) per
ÿÿÿÿ common and common
ÿÿÿÿ equivalent shareÿÿÿÿÿ $(1.26)ÿÿÿÿÿÿÿ $ 0.20ÿÿÿÿÿ $(8.29)ÿÿÿÿÿÿ $(6.59)
ÿÿÿ Cash dividends paid per
ÿÿÿÿ common shareÿÿÿÿÿÿÿÿÿÿÿÿÿ $--ÿÿÿÿÿÿÿÿÿÿ $--ÿÿÿÿÿÿÿÿÿ $--ÿÿÿÿÿÿÿÿ $0.12
ÿÿÿ Common and common
ÿÿÿÿ equivalent shares used
ÿÿÿÿ in the calculations of
ÿÿÿÿ earnings (loss) per
ÿÿÿÿ share (in thousands)ÿ 127,607ÿÿÿÿÿÿ 124,819ÿÿÿÿÿ 126,062ÿÿÿÿÿÿ 123,734
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ APPLE COMPUTER, INC.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ CONSOLIDATED BALANCE SHEETS
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ASSETS
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (In millions)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ September 26,ÿÿÿÿÿÿÿÿÿ September 27,
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1997ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1996
ÿÿÿ Current assets:
ÿÿÿ Cash and cash equivalentsÿÿÿÿÿ $1,230ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $1,552
ÿÿÿ Short-term investmentsÿÿÿÿÿÿÿÿÿÿÿ 229ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 193
ÿÿÿ Accounts receivable, net of
ÿÿÿÿ allowance for doubtful
ÿÿÿÿ accounts of $99 ($91 in 1996)ÿ 1,035ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,496
ÿÿÿ Inventories:
ÿÿÿÿÿ Purchased partsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 141ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 213
ÿÿÿÿÿ Work in processÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 15ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 43
ÿÿÿÿÿ Finished goodsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 281ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 406
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 437ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 662
ÿÿÿ Deferred tax assetsÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 259ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 342
ÿÿÿ Other current assetsÿÿÿÿÿÿÿÿÿÿÿÿÿ 234ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 270
ÿÿÿÿÿ Total current assetsÿÿÿÿÿÿÿÿÿ 3,424ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 4,515
ÿÿÿ Property, plant, and equipment:
ÿÿÿ Land and buildingsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 453ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 480
ÿÿÿ Machinery and equipmentÿÿÿÿÿÿÿÿÿÿ 460ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 544
ÿÿÿ Office furniture and equipmentÿÿÿ 110ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 136
ÿÿÿ Leasehold improvementsÿÿÿÿÿÿÿÿÿÿÿ 172ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 188
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,195ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,348
ÿÿÿ Accumulated depreciation
ÿÿÿÿ and amortizationÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (709)ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (750)
ÿÿÿÿÿ Net property, plant, and
ÿÿÿÿÿÿ equipmentÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 486ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 598
ÿÿÿ Other assetsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 323ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 251
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $4,233ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $5,364
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ APPLE COMPUTER, INC.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ CONSOLIDATED BALANCE SHEETS (Continued)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ LIABILITIES AND SHAREHOLDERS' EQUITY
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (Dollars in millions)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ September 26,ÿÿÿÿÿÿÿÿÿ September 27,
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1997ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1996
ÿÿÿ Current liabilities:
ÿÿÿ Notes payable to banksÿÿÿÿÿÿÿÿÿÿÿ $25ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $186
ÿÿÿ Accounts payableÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 685ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 791
ÿÿÿ Accrued compensation and
ÿÿÿÿ employee benefitsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 99ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 120
ÿÿÿ Accrued marketing and
ÿÿÿÿ distributionÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 278ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 257
ÿÿÿ Accrued warranty and relatedÿÿÿÿÿ 128ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 181
ÿÿÿ Accrued restructuring costsÿÿÿÿÿÿ 180ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 117
ÿÿÿ Other current liabilitiesÿÿÿÿÿÿÿÿ 423ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 351
ÿÿÿ Total current liabilitiesÿÿÿÿÿÿ 1,818ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2,003
ÿÿÿ Long-term debtÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 951ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 949
ÿÿÿ Deferred tax liabilitiesÿÿÿÿÿÿÿÿÿ 264ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 354
ÿÿÿ Shareholders' equity:
ÿÿÿ Series A non-voting convertible
ÿÿÿÿ preferred stock, no par value;
ÿÿÿÿ 150,000 shares issued and
ÿÿÿÿ outstandingÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 150ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ --
ÿÿÿ Common stock, no par value;
ÿÿÿÿ 320,000,000 shares authorized;
ÿÿÿÿ 127,949,220 shares issued and
ÿÿÿÿ outstanding in 1997
ÿÿÿÿ (124,496,972 shares in 1996)ÿÿÿÿ 498ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 439
ÿÿÿ Retained earningsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 589ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,634
ÿÿÿ Otherÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (37)ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (15)
ÿÿÿ Total shareholders' equityÿÿÿÿÿ 1,200ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2,058
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $4,233ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $ 5,364
SOURCEÿ Apple Computer, Inc.
ÿÿÿ /NOTE TO EDITORS:ÿ For additional information visit Apple's website
(http://www.apple.com/source/), call Apple's Media Helpline at 408-974-2042,
or contact David Krane at Apple's PR agency, Niehaus Ryan Group, Inc.,
650-827-7081./
ÿÿÿ /CONTACT:ÿ Katie Cotton, 408-974-7269, or katiec@apple.com, or investors,
Nancy Paxton, 408-974-5420, or email: paxton1@apple.com, both of Apple
Computer, Inc./
ÿÿÿ /Web site:ÿ apple.com
ÿÿÿ (AAPL) |
