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Technology Stocks : Apple Inc.

AAPL 278.85

+0.5%

Nov 28 9:30 AM EST

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To: 16bit who wrote (22556)	1/15/1999 2:13:00 PM
From: Eric Yang	Read Replies (4) of 213173

"Well, my little HP12C says that 123 million divided by 172 million is .715 or 71.5 cents EPS. How did Apple come up with 78 cents?" 22.6 million of the 172 million shares figure you are using are from convertible notes and must be treated differently. When assume conversion there is the dilutive effect of extra shares but there is also anti-dilutive effect of interest savings of $10.8 million per quarter. The net effect slightly dilutive. To calculate earnings per share you would add back the interest of 10.8 million and divided by 172 million. (123+10.8)/172 = 78 cents per share. Fred Anderson had an interview on Bloomberg. The recording of the conversation is available to those who subscribes to the service. He commented on Q1 earnings and shed more light on channel inventory question and basically stated that channel inventory was not an issue. I've been sick every since I got back from the Expo but I'd like to write an short article on this whole inventory issue over the weekend if I get a bit better. Q2 outlook would also be something interesting to talk about. I certainly don't agree with some of the analysis out there that says Apple will miss the estimate this quarter. The new Apple Investors section of MacEvolution is now online with its own easy to remember domain at appleinvestors.com Eric

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