Apple Reports Third Fiscal Quarter Results
CUPERTINO, Calif.–July 16, 1997–Apple Computer, Inc. today announced
financial results for the Company’s fiscal 1997 third quarter ended June
27, 1997. Revenues for the quarter were $1.7 billion, compared to $1.6
billion in the quarter ended March 28, 1997 and $2.2 billion in the quarter
ended June 28, 1996. International sales accounted for 53 percent of total
revenues in the current quarter.
Gross margins for the quarter were 20.0 percent, compared to 18.9 percent
in the March quarter and 18.5 percent in the year-ago quarter.
The Company recorded a net loss for the quarter of $56 million, or $(.44)
per share, compared to a net loss of $708 million, or $(5.64) per share in
the March quarter and a net loss of $32 million, or $(.26) per share, in
the year-ago quarter. The Company’s loss from operations was $60 million,
representing a significant sequential improvement from the loss from
operations of $186 million, exclusive of charges for restructuring and the
write-off of in-process research and development, for the March quarter.
The Company’s loss from operations in the year-ago quarter was $116
million.
Operating expenses for the current quarter were $408 million, down $81
million from the March quarter, exclusive of charges for restructuring and
the write-off of in-process research and development; and down $111 million
from the year-ago quarter.
“The Company continues to progress with its restructuring initiatives, as
is evidenced by the significant sequential decrease in operating expenses,”
said Apple CFO Fred D. Anderson. “As anticipated, we experienced sequential
revenue growth, largely on the strength of our high-end Macintosh products
and robust education market sales.”
“Our financial goals are to continue to reduce operating expenses and to
return the Company to profitability,” said Anderson. “Though we do not
expect to return to profitability in our fourth fiscal quarter, Apple’s
management team is focused sharply on that objective. We are encouraged by
our customers’ and developers’ positive responses to our product lineup and
operating system roadmap. We eagerly await the expected launch of Mac OS 8
later this month, which we believe will provide our customers with a
significantly improved user experience, enhanced performance and stability,
and outstanding multimedia and Internet integration.”
Except for the historical information contained herein, the statements in
this press release are forward-looking statements that involve risks and
uncertainties. Potential risks and uncertainties include, without
limitation, continued competitive pressures in the marketplace; the effect
competitive factors and the Company’s reaction to them may have on consumer
and business buying decisions with respect to the Company’s products; the
consequences competitive factors and buying decisions may have on current
inventory valuations; the Company’s ability to successfully recruit a
qualified chief executive officer; the Company’s ability to successfully
integrate the products and technologies acquired from NeXT Software; the
ability of the Company to make timely delivery of successful technological
innovations to the marketplace; the ability of the Company to successfully
resolve its quality issues; the effect of any future losses on the
Company’s needs for liquidity; the effect of business restructuring on the
future performance of the Company, especially the performance of the
Company’s employees; and the need for any future restructuring, and the
effect that it might have on the performance of the Company. More
information on potential factors that could affect the Company’s financial
results is included in the Company’s public reports filed with the SEC,
including the Company’s Form 10-K for the 1996 fiscal year, the Company’s
Form 10-Q for the second fiscal quarter, and the Company’s Form 10-Q for
the third fiscal quarter, to be filed with the SEC.
Apple Computer, Inc., a recognized innovator in the information industry
and leader in multimedia technologies, creates powerful solutions based on
easy-to-use personal computers, servers, peripherals, software, handheld
computers and Internet content. Headquartered in Cupertino, California,
Apple develops, manufactures, licenses and markets solutions, products,
technologies and services for business, education, consumer, entertainment,
scientific and engineering and government customers in more than 140
countries.
Press Contact:
Katie Cotton
(408) 974-7269
email: katiec@apple.com
Investor Relations Contact:
Nancy Paxton
(408) 974-5420
email:paxton1@apple.com