CUPERTINO, Calif., July 15 /PRNewswire/ -- Apple Computer, Inc. (Nasdaq: AAPL) today announced a profit of $101 million, or $.65 per diluted share, for the Company's fiscal 1998 third quarter ended June 26, 1998. These results compare to a profit of $55 million, or $.38 per diluted share, achieved in the March 1998 quarter. Revenues for the quarter were $1.4 billion, equal to revenues of the prior quarter, and gross margins were 25.7 percent, up from 24.8 percent in the prior quarter. International sales accounted for 43 percent of the quarter's revenues.
The current quarter's results included a $26 million net favorable impact from non-recurring items, including an after-tax gain of $33 million related to the initial public offering of ARM Holdings plc., in which the Company is a shareholder, and a $7 million charge for purchased in-process research and development related to the acquisition of technology from Macromedia, Inc. Without these non-recurring items, the Company's net income for the quarter would have been $75 million, or $.50 per diluted share.
"Apple had a terrific quarter -- we sold a record number of Power Macintosh G3 computers, customers love our new PowerBooks, Apple earned its highest profits in years, and we ended the quarter with the lowest inventory level among the major PC players," said Apple's interim CEO Steve Jobs. "Looking forward, Apple's improved operational efficiency has paved the way for us to aggressively reenter the consumer market with iMac on August 15."
"Apple's three consecutive quarters of profitability and improved asset management have made Apple much stronger financially," said Apple's CFO Fred Anderson. "We have nearly $2 billion in cash and short-term investments, and we believe we have the infrastructure in place to support our upcoming reentry into the consumer market."
Except for the historical information contained herein, the statements in this press release are forward-looking statements that 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 ability of the Company to make timely delivery of new products and successful technological innovations to the marketplace; and the ability of the company to successfully evolve its operating system. More information on potential factors that could affect the Company's financial results is included in the Company's public reports filed with the SEC, including the Company's Form 10-K for the 1997 fiscal year, the Company's Form 10-Q for the first and second fiscal quarters, and the Company's Form 10-Q for the third fiscal quarter, to be filed with the SEC.
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.
NOTE: Apple, the Apple logo, 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.
APPLE COMPUTER, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in millions, except per share amounts) THREE MONTHS ENDED NINE MONTHS ENDED June 26, June 27, June 26, June 27, 1998 1997 1998 1997Net sales $1,402 $1,737 $4,385 $5,467
Costs and expenses:
Cost of sales 1,042 1,389 3,323 4,419 Research and development 76 101 230 391
Selling, general
and administrative 216 307 673 1,027
In-process research
and development 7 -- 7 375 Restructuring costs -- -- -- 155 1,341 1,797 4,233 6,367Operating income (loss) 61 (60) 152 (900)
Interest and other income
(expense), net 48 4 63 16
Income (loss) before provision
(benefit) for income taxes 109 (56) 215 (884)Provision for income taxes 8 -- 12 --Net income (loss) $101 $(56) $203 $ (884)
Earnings (loss) per common share:
Basic $0.76 $(0.44) $1.55 $(7.04) Diluted $0.65 $(0.44) $1.40 $(7.04)
Shares used in computing
earnings (loss) per
common share (in thousands):
Basic 133,068 126,500 130,971 125,547 Diluted 171,786 126,500 145,177 125,547 APPLE COMPUTER, INC. CONSOLIDATED BALANCE SHEETS ASSETS (In millions) June 26, September 26, 1998 1997 (Unaudited)
Current assets:
Cash and cash equivalents $1,203 $1,230Short-term investments 790 229
Accounts receivable, net of
allowance for doubtful
accounts of $90
($99 at September 26, 1997) 915 1,035
Inventories:
Purchased parts 54 141 Work in process 8 15 Finished goods 67 281 129 437Deferred tax assets 192 259Other current assets 146 234 Total current assets 3,375 3,424
Property, plant, and equipment:
Land and buildings 352 453Machinery and equipment 379 460Office furniture and equipment 93 110Leasehold improvements 134 172 958 1,195
Accumulated depreciation
and amortization (593) (709) Net property, plant, and equipment 365 486Other assets 301 323 $4,041 $ 4,233 APPLE COMPUTER, INC. CONSOLIDATED BALANCE SHEETS (Continued) LIABILITIES AND SHAREHOLDERS' EQUITY (Dollars in millions) June 26, September 26, 1998 1997 (Unaudited)
Current liabilities:
Notes payable to banks $-- $25 Accounts payable 573 685Accrued compensation and employee benefits 91 99Accrued marketing and distribution 234 278Accrued warranty and related 124 128Accrued restructuring costs 77 180Other current liabilities 290 423 Total current liabilities 1,389 1,818Long-term debt 953 951Deferred tax liabilities 213 264
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;
133,130,984 shares issued
and outstanding at June 26, 1998
(127,949,220 shares at
September 26, 1997) 592 498Retained earnings 792 589Other (48) (37) Total shareholders' equity 1,486 1,200 $4,041 $4,233
SOURCE Apple Computer |
