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Technology Stocks : Apple Inc.
AAPL 269.52+0.8%2:33 PM EST
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To: Marc Newman who wrote (7878)1/21/1998 12:54:00 AM
From: Eric Yang  Read Replies (2) of 213173
 
I know it's only Jan but I was wondering what everyone think the earnings will be like this quarter. It seems to me that we'll be in the black by a safe margin this quarter.

Profit Margin
G3s accounted for about 20% of total sales this quarter. Had it not being for the mid quarter release and late release in international markets it probably would have accounted for a higher percentage. So I expect the G3s to take on a larger share of total sale this quarter, possibly as high as 40%. Naturally it will increase margin from last quarter's 22% to say...23% (would 24% be too optimistic?)

Anderson said that cost should drop to 300 million range. So if..
revenue X margin = gross profit
1.6 billion X 23% = 368
1.5 billion X 23% = 345
1.4 billion X 23% = 322

If we take 1.5 billion as the revenue we have 345-300(cost)= 45 million dollar profit. Add another 5 million or so for interest earned? then we have a pretty decent quarter with $ 50 million profit.

Like Marc said the question that's on many people's mind is the $35 million one time charge Apple made reference to in the last 10-K. A few of us have shared thoughts on this particular issue in private emails prior to the earnings were made official. Now we pretty much know that if Apple is going to take this charge it will charge it to Q2. Perhaps a little public awareness is good so that the stock doesn't take a hit when people are caught by surprise. In any case, the next 10-K will give us a good idea about what Apple will do.

Eric
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