APPLE TAKES HUGE LOSS.Byline: Catalina Ortiz Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Ailing Apple Computer Inc. announced Wednesday that it will take a big dose of strong medicine - a $700 million loss for the current quarter after writing off unsold products and paying for job cuts. Apple, which lost $69 million in the October-December quarter, had warned of a deeper loss for the January-March period. But the huge figure exceeded Wall Street's predictions. Investors were glad Apple appeared to deal with all of its financial trouble at once and sent the company's stock higher. It was up 1-3/8 to 25-1/4, a 6 percent jump, in Nasdaq trading. ``They're taking the opportunity to write off everything they can possibly write off. . . . They may as well get all the bad news out as soon as possible and then rebuild the company,'' said Eric Lewis Eric Lewis, born May 13, 1973 in Camden, New Jersey, is an American jazz pianist. Lewis studied piano as a child, graduated from the Manhattan School of Music in 1995 and began touring with jazz luminaries Wynton Marsalis and Cassandra Wilson, respectively. , an analyst with International Data Corp. in Mountain View. ``They're doing the right thing by taking the big hit now - both from a financial and a public-relations standpoint,'' he said. Apple's new chairman, Gil Amelio Gilbert F. Amelio (born March 1, 1943 in New York City) is an American technology executive. He grew up in Miami, Florida, and received a bachelor's, master's, and Ph.D. in physics from the Georgia Institute of Technology. , said revenues and shipments would be ``substantially below'' the January-March quarter compared with a year ago, when Apple earned $73 million on sales of $2.65 billion. That is prompting Apple to write down the value of its inventory, which ballooned after the company misjudged demand at the end of last year. The situation was hurt further by a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in overall demand for PCs and by customer uncertainty during a period in January when Apple was the subject of takeover speculation. More than half the $700 million loss will be in downgrading downgrading A reduction in the quality rating of a security issue, generally a bond. A downgrading may occur for various reasons including a period of losses, or increased debt service required by restructuring a firm's capital to include more debt and less worth of inventory. About a quarter of the loss will go into restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . Earlier this year, Apple started laying off 1,300 of its 14,500 employees. CAPTION(S): 2 Charts Chart: (1-2--Color) APPLE'S FINANCES Apple Computer warn s of a $700 million loss in the quarter thatthat ends this week due to a bloated bloat·ed adj. 1. Much bigger than desired: a bloated bureaucracy; a bloated budget. 2. Medicine Swollen or distended beyond normal size by fluid or gaseous material. inventory and costs for cutting jobs. A look at Apple's performance in recent years. Associated Press (1) Profits/Loses (2) Revenue |
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