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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Dylan who wrote (7686)	1/14/1998 7:32:00 PM
From: Perry	Respond to of 213173

Wednesday January 14, 7:07 pm Eastern Time Apple sees sequential rev growth after Q2 SAN FRANCISCO, Jan 14 (Reuters) - Apple Computer Inc chief financial officer Fred Anderson told Wall Street analysts not to look for sequential revenue growth in its second fiscal quarter, which is typically its seasonally slowest. Anderson told Wall Street analysts to look for sequential revenue growth to start in the June and September quarters. ''We are not looking for sequential revenue growth next quarter,'' Anderson said, adding to look in the June and September quarters.'' He also said analysts should not expect year-over-year revenue growth before the June quarter. As expected, Apple reported a first quarter profit. Anderson also said he believes that Apple can sustain its current gross profit margins of 22.4 percent of revenues. Anderson highlighted what he said are ''very high quality'' earnings and Apple's goal for the second quarter is to further reduce its operating expenses to $300 million from $313 million in the first quarter. Apple also had positive cash flow from operations of $143 million, through improvements in its asset management and it ended the quarter with $1.2 billion in cash. ''We are very pleased with the balance sheet, which we feel is both strong and conservative,'' he said. Anderson highlighted the success of Apple's new PowerMacintosh G3 products, its sales at its CompUSA Apple stores within a store, success at the new Apple store on the Internet, reduced operating expenses and stabilization of its revenue decline at around the $1.6 billion mark. He said 21 percent of all Apple's computer systems sold in the quarter were its new G3s Macs, but he also discounted recent speculation that old products were not selling. Anderson said Apple saw $15 million in sales at its online store in only 51 days. At that run rate, Apple could see about $100-$150 million in revenues annually from the Internet.