Printer Friendly

APPLE COMPUTER REPORTS THIRD QUARTER RESULTS

 CUPERTINO, Calif., July 15 /PRNewswire/ --Apple Computer Inc. (NASDAQ-NMS: AAPL) today reported financial results for its third fiscal quarter which ended June 25, 1993. Net revenues for the third quarter of 1993 were $1.862 billion, a 7-percent increase over the third quarter of the prior year. Macintosh computer unit shipments for the quarter were up 20 percent compared to the third quarter a year ago.
 Apple also announced that it has taken a charge of $320.9 million, or $198.9 million after tax, for the previously announced restructuring and other cost reduction activities that are now underway at the company. As a result of these charges, the company reported a net loss for the quarter of $188.3 million or $1.63 per share.
 Apple said that continued gross margin pressures -- a result of ongoing price wars in the personal computer industry -- as well as a weaker-than-expected European economy, contributed to the disappointing results. The company said that it plans to address these developments by competing more aggressively on price in its personal computer business, while dramatically reducing its cost structure to compensate for lower gross margins. Apple will focus its product development efforts on such areas as multimedia, education, publishing, mobility and graphics-intensive solutions in its key markets.
 The company has already implemented aggressive price reductions on selected products worldwide. Additionally, the company will layoff approximately 2,500 full-time, temporary and contract employees worldwide over the next 12 months, consolidate some operations across divisions, and sharpen organizational focus. A broad re-engineering of the company, aimed at lowering costs, has also begun.
 "We're confident we can put our business back on a growth path by aggressively pursuing market share while offering innovative technology. At the same time, we must significantly -- and permanently -- lower our cost of doing business," said Michael H. Spindler, Apple's president and chief executive officer. "The entire Apple management team is committed to doing what it takes to get our revenue, earnings, and unit growth back in line. We all understand that we must become more customer- focused and exhibit more disciplined market implementation through our traditional and emerging channels. We must also sharpen our product development focus and maintain vigilant control of costs to make this work."
 "Early indications suggest that our most recent price reductions are accelerating our unit shipments," Spindler continued. "Development of new Macintosh desktop systems and new PowerBook notebook computers are on track. And prospects for our new and emerging businesses -- personal digital assistants, servers, and software products -- are promising to contribute to revenue and profits in the coming fiscal year. As a result, we see excellent opportunities for growth in Apple's future."
 Shipment of Apple's first product based on Newton technology -- a handheld communication assistant -- is on track for later this summer. And, in addition to the Apple Workgroup Server 95 that shipped last month, two new server products, the Apple Workgroup Server 60 and Apple Workgroup Server 80 will ship in volume, starting this month.
 Concurrently, Apple announced that it has consolidated operations into five business units and that each business unit will now hold greater responsibility for profitability. The five business units are: the Personal Computer Division, the AppleSoft Division, the Apple Business Systems Division, the Personal Interactive Electronics Division, and Claris Corp.
 Ian Diery, formerly executive vice president of worldwide sales and marketing, will assume new responsibilities as executive vice president, Personal Computer Division. In this role, Diery will direct marketing, sales, distribution, manufacturing, engineering and product development worldwide for the division. Fred Forsyth, formerly senior vice president of the Macintosh Systems Division, will report to Diery as senior vice president of worldwide operations. His responsibilities will include manufacturing, distribution and procurement.
 Apple's software division, now called AppleSoft (previously Macintosh Software Architecture Division) will continue under the direction of David Nagel, senior vice president.
 Apple Business Systems Division (formerly the Enterprise Systems Division) -- including all LAN-based servers, networking and communication and interoperability solutions -- will be headed by Morris Taradalsky, vice president.
 Gaston Bastiaens, vice president, continues as head of the Apple Personal Interactive Electronics (PIE) Division.
 Daniel L. Eilers will continue as president and chief executive officer of Claris Corp., Apple's subsidiary which develops and publishes applications software.
 Diery, Nagel, Bastiaens, Taradalsky and Eilers will all report to Spindler.
 NOTE: Apple, the Apple logo, and Macintosh are registered trademarks and PowerBook and Newton are trademarks of Apple Computer Inc.
 APPLE COMPUTER INC.
 Consolidated Statements of Income
 (Unaudited, in thousands, except per-share amounts)
 Three Months Ended Nine Months Ended
 June 25, June 26, June 25, June 26,
 1993 1992 1993 1992
 Net sales $1,861,979 $1,740,171 $5,836,165 $5,318,808
 Costs and expenses:
 Cost of sales 1,255,975 968,844 3,658,473 2,978,671
 Research and
 development 174,169 156,609 500,458 423,589
 Selling, general and
 administrative 417,645 413,657 1,253,193 1,242,428
 Restructuring costs
 and other 320,856 -- 320,856 --
 Total 2,168,645 1,539,110 5,732,980 4,644,688
 Operating income
 (loss) (306,666) 201,061 103,185 674,120
 Interest and other
 income, net 2,931 11,302 32,176 23,883
 Income (loss) before
 income taxes (303,735) 212,363 135,361 698,003
 Income tax provision
 (benefit) (115,419) 80,698 51,436 265,242
 Net income
 (loss) $ (188,316) $ 131,665 $ 83,925 $ 432,761
 Earnings (loss) per
 common and common
 equivalent
 share $ (1.63) $ 1.07 $ 0.70 $ 3.52
 Cash dividends paid per
 common share $ 0.12 $ 0.12 $ 0.36 $ 0.36
 Common and common equivalent
 shares used in the
 calculations of earnings
 (loss)per share 115,669 122,937 119,969 123,037
 Consolidated Balance Sheets
 (Unaudited, in thousands)
 June 25, June 26,
 1993 1992
 Assets
 Current assets:
 Cash and short-term
 investments $ 856,811 $ 1,475,563
 Accounts receivable 1,265,359 956,629
 Inventories 1,238,658 535,803
 Prepaid income taxes 304,940 224,522
 Other current assets 254,603 230,635
 Total current assets 3,920,371 3,423,152
 Net property, plant
 and equipment 659,520 467,901
 Other assets 188,092 230,103
 Total $ 4,767,983 $ 4,121,156
 (In thousands) March 26, June 26,
 1993 1992
 Liabilities and Shareholders' Equity
 Current liabilities:
 Notes payable $ 308,179 $ 180,204
 Accounts payable 659,547 389,401
 Accrued compensation
 and benefits 170,681 157,277
 Accrued marketing
 and distribution 206,056 153,957
 Accrued restructuring costs 380,237 99,268
 Other current liabilities 372,546 377,600
 Total current liabilities 2,097,246 1,357,707
 Deferred income taxes 650,268 642,054
 Shareholders' equity:
 Common stock 183,747 285,123
 Retained earnings 1,856,273 1,831,154
 Other (19,551) 5,118
 Total shareholders' equity 2,020,469 2,121,395
 Total $4,767,983 $4,121,156
 -0- 7/15/93
 /CONTACT: Bill Slakey of investor relations, 408-974-3488, or Kate Paisley of public relations, 408-974-5453, both of Apple Computer/
 (AAPL)


CO: Apple Computer Inc. ST: California IN: CPR SU: ERN

GT -- SJ005 -- 2190 07/15/93 16:36 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 15, 1993
Words:1186
Previous Article:BETHLEHEM STEEL CORPORATION'S BETHSHIP ANNOUNCES TENTATIVE AGREEMENT WITH UNION ON TERMS OF 42-MONTH CONTRACT
Next Article:CHICK-FIL-A STRETCHING ITS WINGS WITH ITS FIRST HOSPITAL RESTAURANT LOCATION IN THE NATION
Topics:


Related Articles
APPLE COMPUTER REPORTS INCREASED REVENUES AND EARNINGS
APPLE COMPUTER REPORTS RECORD REVENUES AND EARNINGS
APPLE TO RESTRUCTURE OVER NEXT 12 MONTHS
APPLE COMPUTER INC. REPORTS RECORD REVENUE AND UNIT SHIPMENTS FOR FOURTH FISCAL QUARTER
APPLE Q3 REVENUE AND INCOME RISE
APPLE'S FINANCIAL RESULTS TO BE BETTER THAN EXPECTED
APPLE COMPUTER ANNOUNCES Q3 RESULTS; REVENUES UP 20% EARNINGS BEFORE RESTRUCTURE ADJUSTMENTS UP 67%
APPLE REVISES ITS FIRST QUARTER EXPECTATIONS
Apple Reports Second Quarter Profit of $135 Million.
Apple Expects to Report Fourth Quarter Earnings of $75 to $85 Million.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters