Headline: Apple Reports $55 Million in Quarterly Profits
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CUPERTINO, Calif., April 15 /PRNewswire/ -- Apple Computer, Inc.
(NASDAQ:AAPL) today announced profits of $55 million and diluted earnings per
share of $0.38 for its second fiscal quarter ending March 27, 1998, up from a
loss of $708 million, or $(5.64) per share, in the prior year quarter. The
Company's net loss in the prior year quarter was $178 million exclusive of
non-recurring charges.
Revenues for the quarter were $1.4 billion, down from $1.6 billion in the
prior year quarter. International sales accounted for 50 percent of total
revenues. Unit shipments were 650,000, an 8 percent increase from the prior
year quarter. Gross margins for the quarter were 25 percent, up from
19 percent in the prior year quarter.
"Apple had a great quarter, no question about it," said Steve Jobs,
Apple's interim CEO. "We are very pleased with the strong demand for our
Power Macintosh G3 computers, which accounted for 51 percent of all units
sold."
"The G3s' higher margins coupled with disciplined expense controls have
yielded continued positive cash flows and solid, high-quality earnings," added
Apple CFO Fred Anderson.
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 SIX MONTHS ENDED
March 27, March 28, March 27, March 28,
1998 1997 1998 1997
Net sales $1,405 $1,601 $2,983 $3,730
Costs and expenses:
Cost of sales 1,056 1,298 2,281 3,030
Research and development 75 141 154 290
Selling, general and
administrative 223 348 457 720
In-process research
and development -- 375 -- 375
Restructuring costs -- 155 -- 155
1,354 2,317 2,892 4,570
Operating income (loss) 51 (716) 91 (840)
Interest and other income
(expense), net 8 8 15 12
Income (loss) before provision
for income taxes 59 (708) 106 (828)
Provision for income taxes 4 -- 4 --
Net income (loss) $55 $(708) $102 $ (828)
Basic earnings (loss)
per common share $0.42 $(5.64) $0.78 $(6.62)
Diluted earnings (loss)
per common and common
equivalent share $0.38 $(5.64) $0.71 $(6.62)
Common shares used in the
calculations of basic
earnings (loss) per share
(in thousands) 131,969 125,609 130,021 125,071
Common and common
equivalent shares used
in the calculations of
diluted earnings (loss)
per share (in thousands) 145,915 125,609 142,769 125,071
APPLE COMPUTER, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
(In millions)
March 27, September 26,
1998 1997
(Unaudited)
Current assets:
Cash and cash equivalents $1,285 $1,230
Short-term investments 538 229
Accounts receivable, net of
allowance for doubtful accounts of
$96 ($99 at September 26, 1997) 807 1,035
Inventories:
Purchased parts 87 141
Work in process 6 15
Finished goods 164 281
257 437
Deferred tax assets 201 259
Other current assets 125 234
Total current assets 3,213 3,424
Property, plant, and equipment:
Land and buildings 402 453
Machinery and equipment 396 460
Office furniture and equipment 97 110
Leasehold improvements 136 172
1,031 1,195
Accumulated depreciation
and amortization (616) (709)
Net property, plant, and equipment 415 486
Other assets 335 323
$3,963 $4,233
APPLE COMPUTER, INC.
CONSOLIDATED BALANCE SHEETS (Continued)
LIABILITIES AND SHAREHOLDERS' EQUITY
(Dollars in millions)
March 27, September 26,
1998 1997
(Unaudited)
Current liabilities:
Notes payable to banks $ 23 $ 25
Accounts payable 523 685
Accrued compensation and employee benefits 96 99
Accrued marketing and distribution 231 278
Accrued warranty and related 129 128
Accrued restructuring costs 113 180
Other current liabilities 269 423
Total current liabilities 1,384 1,818
Long-term debt 953 951
Deferred tax liabilities 238 264
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;
132,991,463 shares issued and
outstanding at March 27, 1998
(127,949,220 shares at September 26, 1997) 590 498
Retained earnings 691 589
Other (43) (37)
Total shareholders' equity 1,388 1,200
$3,963 $4,233
SOURCE Apple Computer, Inc.
-0- 04/15/98
/NOTE TO EDITORS: For additional information visit Apple's website
(http://www.apple.com/source/) or call Apple's Media Helpline at
408-974-2042./
/CONTACT: media, Tami Begasse, 408-974-3156, or begasse@apple.com, or
investors, Nancy Paxton, 408-974-5420, or paxton1@apple.com, both of Apple
Computer, Inc./
/Web site: apple.com |
