APPLE TRIES TO CALM MERGER RUMBLINGS.Byline: Tom Abate San Francisco Examiner The San Francisco Examiner is a U.S. daily newspaper. It has been published continuously in San Francisco, California, since the late 19th Century. History 19th century The beginning of the Examiner is a topic of some controversy. Apple Computer Inc. issued an unusual statement Thursday morning, denying it is involved in merger talks and warning investors it could lose even more money in the current quarter than it did over Christmas. The statement, issued by new Apple 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. , comes less than a week after he replaced fired Chief Executive Michael Spindler Michael Spindler (born 1942 in Germany), nicknamed "the Diesel" for his reputed around-the-clock work habits, was president and CEO of Apple from 1993 to 1996. Having joined Apple in 1980, he rose through the ranks in Apple's European operations as President of Apple Europe , who had a hard and fast policy of never commenting on takeover rumors. "Because of the destabilizing effect recent rumors and speculation have had on our business and our organization, we have decided in this one instance . . . to make an exception to our policy," the company said in a statement. Implying that rumors of a merger had scared away some customers, Apple warned that it "expects to report an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. " in the current quarter "that will significantly exceed" its $69 million loss during Christmas. Apple also took out full-page newspaper advertisements Thursday to review its accomplishments as the company that created home computing and to promise that "together, we will go farther still." Apple's stock had fallen Wednesday after unsubstantiated reports that Apple was still trying to find a buyer after months of inconclusive talks with Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. Inc. The report from Reuters news service said Apple was only getting low-ball offers from possible suitors. Apple stock continued to slip Thursday, hovering around 28 per share. Todd Bakar, an analyst for Hambrecht & Quist in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , praised Amelio for nixing the takeover rumors and providing early warnings of a bigger loss. "You never like to hear bad news, but at least it's good when you get it in a timely fashion," Bakar said. He added it is not surprising Apple is not interested in a merger now and is prepared to give Amelio some time to fix the company. "If he can stem the flow of losses and talent they could command a higher price if they do decide to sell," Bakar said. Thursday's statement was one of the first public utterances by Amelio, who came to Apple after serving as chief executive of National Semiconductor Corp., where he helped that beleaguered be·lea·guer tr.v. be·lea·guered, be·lea·guer·ing, be·lea·guers 1. To harass; beset: We are beleaguered by problems. 2. To surround with troops; besiege. company return to profitability. "I want to emphasize my strong belief, despite the obvious disappointment of our performance in the first and second quarters, that the foundations of our business are sound, and that Apple Computer has the ability, determination and staying power to deal with current challenges and to move forward with confidence into the future," Amelio said. "I fully expect that our customers' grandchildren will be buying Apple products." Amelio has been meeting with his new subordinates, trying to figure out how to resuscitate re·sus·ci·tate v. To restore consciousness, vigor, or life to. Apple. |
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