Apple Reports Fiscal First Quarter Profit of $152 Million 49 percent
unit growth outpaces industry average
CUPERTINO, California-Jan. 13, 1999–Apple Computer, Inc. today
announced financial results for its fiscal 1999 first quarter which
ended Dec. 26, 1998. For the quarter, the Company posted a net profit
of $152 million, or $.95 per diluted share. These results compare to
a net profit of $47 million, or $.33 per diluted share, achieved in
the year-ago quarter. Revenues for the quarter were $1.7 billion, up
eight percent from the year-ago quarter, and gross margins were 28.2
percent, up from 22.4 percent in the prior year. International sales
accounted for 47 percent of the quarter’s revenues.
The current quarter’s results included a $29 million after-tax gain
from the sale of 2.9 million shares of ARM Holdings plc. Without this
non-recurring item, the Company’s net income for the quarter would
have been $123 million, or $.78 per diluted share.
Sales of 519,000 iMac computers in the quarter drove overall unit
growth to 49 percent year-over-year. Ending inventory dropped to $25
million, which represents two days of inventory.
“Unit growth year-over-year was three to four times higher than the
industry average,” said Steve Jobs, Apple’s interim CEO. “In
addition, Apple ended the quarter with only two days of inventory,
besting industry-leading Dell’s seven days of inventory.”
“Growing earnings combined with world-class asset management resulted
in positive cash flow from operations of $223 million,” said Fred
Anderson, Apple’s CFO. “Apple now has nearly $2.6 billion in cash and
short-term investments.”
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 and economic factors and the
Company’s reaction to them may have on consumer and business buying
decisions with respect to the Company’s products; the ability of the
Company to make timely delivery of new products and successful
technological innovations to the marketplace; and the ability of the
Company to successfully evolve its operating system. 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 1998 fiscal year, and
the Company’s Form 10-Q for the quarter ended December 26, 1998, to
be filed with the SEC.
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.