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Apple Reports First Fiscal Quarter Results
PR Newswire - January 14, 1998 16:30
AAPL %CPR %ERN V%PRN P%PRN
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CUPERTINO, Calif., Jan. 14 /PRNewswire/ -- Apple Computer, Inc.
(Nasdaq: AAPL) today announced financial results for its fiscal 1998 first
quarter which ended Dec. 26, 1997. For the quarter, the Company generated
revenues of $1.6 billion and unit sales of 635,000. The Company recorded a
quarterly net profit of $47 million, resulting in basic and diluted earnings
per share of $.37 and $.33, respectively. Apple recorded a net loss of
$161 million, or $(1.26) per share, in the September quarter, and recorded a
net loss of $120 million, or $(.96) per share, in the year-ago quarter.
The Company achieved gross margins of 22 percent during the quarter,
compared to 20 percent in the September quarter and 19 percent in the year-ago
quarter. International sales accounted for 50 percent of the Company's
quarterly revenues.
The profitable results were buoyed by the successful introduction of the
Company's Power Macintosh G3 computers on November 10. Over 133,000 units of
the G3 systems shipped during the quarter, rendering the G3 launch the most
successful in the Company's history. The Company also continued to drive down
operating expenses of a recurring nature to $313 million, compared to
$353 million in the September quarter and $521 million in the year-ago
quarter.
"The December quarter results reflect the benefits of the disciplined
focus that Apple has undertaken in recent months," said Apple interim CEO
Steve Jobs. "We've concentrated on providing the powerful products our
customers want at competitive prices, and we continue to streamline our
business and work with industry partners to facilitate this focus. Returning
Apple to sustainable profitability is the Company's number one objective for
fiscal 1998, and we believe we're making great progress toward that goal."
"We're extremely pleased with the quality of the quarter's earnings," said
Apple CFO Fred Anderson. "Not only did we achieve a solid operating profit,
but our improving asset management resulted in positive cash flow from
operations of $143 million."
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.
The statements in this release regarding sustainable profitability and
improving asset management are forward looking and subject to risk and
uncertainty, and future results could differ materially from our forecasts.
For a detailed discussion of factors that may affect the Company's operating
results, interested parties should review the Company's SEC reports, including
Apple's Annual Report on Form 10-K for the year ended September 26, 1997, as
well as the Form 10-Q for the quarter ended December 26, 1997, to be filed
with the SEC.
NOTE: Apple, the Apple logo, Macintosh and Power 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.
APPLE COMPUTER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions, except per share amounts)
THREE MONTHS ENDED
December 26, December 27,
1997 1996
Net sales $ 1,578 $ 2,129
Costs and expenses:
Cost of sales 1,225 1,732
Research and development 79 149
Selling, general and administrative 234 372
1,538 2,253
Operating income (loss) 40 (124)
Interest and other income (expense), net 7 4
Income (loss) before benefit from
income taxes 47 (120)
Provision (benefit) from income taxes -- --
Net income (loss) $ 47 $ (120)
Basic earnings (loss) per common share $ 0.37 $ (0.96)
Diluted earnings (loss) per common
and common equivalent share $ 0.33 $ (0.96)
Common shares used in the calculations
of basic earnings (loss) per share
(in thousands) 127,989 124,532
Common and common equivalent shares used
in the calculations of diluted earnings
(loss) per share (in thousands) 139,839 124,532
APPLE COMPUTER, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
(In millions)
December 26, September 26,
1997 1997
(Unaudited)
Current assets:
Cash and cash equivalents $ 1,193 $ 1,230
Short-term investments 434 229
Accounts receivable, net of allowance
for doubtful accounts of $96
($99 at September 26, 1997) 902 1,035
Inventories:
Purchased parts 99 141
Work in process 5 15
Finished goods 300 281
404 437
Deferred tax assets 233 259
Other current assets 207 234
Total current assets 3,373 3,424
Property, plant, and equipment:
Land and buildings 402 453
Machinery and equipment 416 460
Office furniture and equipment 100 110
Leasehold improvements 151 172
1,069 1,195
Accumulated depreciation and amortization (640) (709)
Net property, plant, and equipment 429 486
Other assets 324 323
$ 4,126 $ 4,233
LIABILITIES AND SHAREHOLDERS' EQUITY
(Dollars in millions)
Current liabilities:
Notes payable to banks $ 24 $ 25
Accounts payable 655 685
Accrued compensation and employee benefits 92 99
Accrued marketing and distribution 261 278
Accrued warranty and related 126 128
Accrued restructuring costs 144 180
Other current liabilities 367 423
Total current liabilities 1,669 1,818
Long-term debt 952 951
Deferred tax liabilities 261 264
Shareholders' equity:
Series A non-voting convertible preferred
stock, no par value; 150,000 shares
authorized, issued and outstanding 150 150
Common stock, no par value; 320,000,000 shares
authorized; 128,018,985 shares issued and
outstanding at December 26, 1997
(127,949,220 shares at September 26, 1997) 499 498
Retained earnings 636 589
Other (41) (37)
Total shareholders' equity 1,244 1,200
$ 4,126 $ 4,233
SOURCE Apple Computer, Inc.
/NOTE TO EDITORS: For additional information visit Apple's website
( apple.com ), call Apple's Media Helpline at 408-974-2042,
or contact Cara Lewis at Apple's PR agency, Niehaus Ryan Group, Inc.,
650-827-7052./
/CONTACT: press, Katie Cotton, 408-974-7269, or katiec@apple.com, or
investors, Nancy Paxton, 408-974-5420, or paxton1@apple.com, both of Apple
Computer, Inc./
/Web site: apple.com
(AAPL)
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