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

To: Alomex who wrote (7890)	1/21/1998 4:00:00 PM
From: Eric Yang	Read Replies (1) \| Respond to of 213173

>>I don't see Apple posting a profit for this quarter, which historically has been extremelly weak. I estimate sales of $1.4 billion and losses of $50 million, plus one time charges....<< Alomex,how did you arrive at that conclusion? If I read your comment correctly you believe Apple will lose $50 million this quarter and that does NOT include any one time charges? For that to happen either the revenue has to drop or cost has to increase or the combination of the two. Lets do a little calculation: To lose $50 million purely by decrease in revenue based on cost of $300 mil: profit/loss = gross profit + interest - cost -50 = gross profit+ (5?) -300 gross profit = 300 -50 -5 gross profit = $245 million gross profit = revenue X margin 245 = revenue X (22% conservative) revenue = 245 X 100/22 = 1,113 Revenue of $1.1 billion To lose $50 million purely due to increase cost using conservative projected revenue of 1.4 billion: gross profit = 1400 X 22% gross profit = 308 -50 = 308 + 5? (interest) - cost cost = $363 million dollars Neither one of these seem likely to me. And we based these calculation on fairly conservative numbers. Anderson already said that cost will continue to drop this quarter to about $300 million. He also expect to see profit this quarter..but just can't promise that there will be a sequential increase in profit. I have no reason to doubt him. Apple has been decreasing cost at a rate of 40-50 million/quarter. At that rate it would have dropped to 275 or so this quarter but now that Apple is making a profit it no longer needs to make such deep cuts. So keeping cost at $300 million can easily be done. No matter how I look at it I see profit this quarter. Anyone know what the most recent average analyst estimates for Q2 is right now? Eric