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To: richard surckla who wrote (62450)	12/5/2000 9:26:50 PM
From: Don Green	Read Replies (1) \| Respond to of 93625

O.T. fm: WSJ Apple Computer Warns Sales Will Fall Well Short of Estimates Dec 5 2000 CUPERTINO, Calif. -- Apple Computer Inc. warned investors that profit and revenue for the quarter will be "substantially below expectations" because of slow sales in October and November. The computer maker blamed the shortfall on an industry-wide decline in personal-computer sales. Last week Gateway Inc., San Diego, warned that its fourth-quarter results would miss Street targets because of a sharp downturn in PC sales, particularly over the critical Thanksgiving weekend marking the start of the holiday shopping season. Apple said it expects to report revenue of about $1 billion and a loss, excluding investment gains, of between $225 million and $250 million. The company previously had projected revenue of $1.6 billion and a slight profit. Analysts surveyed by First Call/Thomson Financial expected a profit of three cents a share for the quarter, which ends Dec. 30. "We're not happy about it, and plan to return to sustained profitability next quarter," said Chief Executive Steve Jobs in a prepared statement. Apple said the $600 million revenue shortfall came amid weak sales world-wide and unplanned sales promotions and markdowns. The company also said it is lowering its full-year fiscal 2001 revenue projection to the $6 billion-to-$6.5 billion range. The warning is just the latest bad news for Apple investors, who have seen their stock hammered in recent months. In October, Apple missed lowered expectations for fiscal fourth-quarter earnings and cut profit targets for its 2001 fiscal year, warning investors that the fiscal first quarter would also disappoint as the computer maker worked to remedy sales shortfalls. The warning was issued after the close of regular trading Tuesday. Apple's shares rose 31 cents to $17 in 4 p.m. trading on the Nasdaq Stock Market. In after-hours trading Tuesday, the stock sank to $14.63, according to MarketXT.