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 CUPERTINO, Calif., Oct. 14 /PRNewswire/ -- Driven by strong demand for its flagship Macintosh personal computers and encouraging revenues from its emerging businesses, Apple Computer Inc. today announced record revenues and unit shipments for the fourth quarter of fiscal 1993, which ended Sept. 24, 1993.
 Revenue for the quarter was $2.14 billion -- up 21 percent from the fourth quarter of fiscal 1992 -- and represents the highest quarterly sales level ever achieved by the company. Unit shipments of Macintosh personal computers grew 36 percent compared to the fourth quarter a year ago, also reaching a new quarterly high.
 Net income for the quarter was $2.7 million dollars, or 2 cents a share, down from $97.6 million or 81 cents a share in the fourth quarter of fiscal year 1992. The decline in net income was due to a significant reduction in gross margins as a percentage of sales. Gross margins for the company were 25.7 percent of sales in the fourth quarter of fiscal 1993, down from the 42.7 percent reported in the year-ago quarter. This decline in gross margins as a percent of sales was the result of industry-wide pricing competition and Apple's own decision to offer its superior technology to customers at prices at or near competitive offerings.
 To compensate for lower gross margins, in its third fiscal quarter, Apple announced a major restructuring of the company. As a result of these efforts, fourth quarter operating expenses were reduced by $80 million dollars, or 13 percent, compared to the fourth quarter a year ago, allowing the company to absorb the substantial decline in gross margins while remaining profitable.
 "We have challenges ahead of us, but I believe we are beginning to turn the corner," said Michael Spindler, Apple's president and chief executive officer. "Our new prices for Macintosh computers -- combined with our technology leadership -- led to brisk sales and market share gains during the quarter. We also generated revenue growth in our application software business, new revenues from the sale of file servers, and from the early success of our Newton technology and the Newton MessagePad.
 "At the same time, the restructuring activities which began during our third fiscal quarter are beginning to lower our operating expenses. Our employees deserve great credit for implementing an aggressive cost reduction program, while at the same time supporting Apple's record revenues and shipments.
 "Going forward, we need to maintain the momentum in our unit shipments and revenues while further reducing our operating expenses. These are not small challenges, but we must meet them in order to improve our profitability."
 In the fourth quarter, unit shipments of Macintosh computers, including Apple's new WorkGroup Servers, were strong around the globe, with growth in unit shipments exceeding 30 percent in each of the company's U.S., European, and Pacific markets. International revenues for the quarter increased 22 percent compared to the fourth quarter a year ago, accounting for 41 percent of Apple's total revenues.
 Revenues at Claris Corp., Apple's wholly owned applications software subsidiary, grew 48 percent compared to the fourth quarter a year ago. Claris' revenues were driven by strong sales of FileMaker Pro and ClarisWorks for Windows and Macintosh. Claris now ranks among the ten largest worldwide personal computer software applications vendors.
 Apple's Newton technology is off to a strong start. Since its introduction on Aug. 2, unit shipments of the Newton MessagePad have exceeded 50,000 units. The Newton is Apple's first Personal Digital Assistant (PDA) and the first product to incorporate Newton technology. Industry support for the product and technology has also been strong. A number of leading consumer electronics and telecommunications concerns have announced their intent to license Newton technology including Sharp, Motorola, Siemens/Rolm, British Telecom, Deutsche Telekom, GEC Plessey, and others. Additionally, more than 1,500 Newton developer kits have been sold worldwide.
 For the fiscal year ended Sept. 24, 1993, Apple's revenues totaled $7.98 billion, an increase of 13 percent compared to fiscal 1992. Net income for fiscal 1993 was $86.6 million, or 73 cents a share. This was down from $530 million or $4.33 a share in fiscal 1992. Net income for fiscal 1993 includes restructuring expenses of $321 million before taxes, or $199 million after taxes which the company elected to take as a charge against earnings in its fiscal third quarter.
 The board of directors of Apple Computer Inc. has declared a 12 cents per share dividend for the company's fourth fiscal quarter ended Sept. 24, 1993. The dividend represents Apple's 27th consecutive quarterly dividend and is payable Dec. 17, 1993 to shareholders of record as of the close of business on Nov. 26, 1993.
 NOTE: Apple, the Apple logo and Macintosh are registered trademarks and Newton is a trademark of Apple Computer Inc.
 Consolidated Statements of Income
 (In thousands, except per share amounts)
 Three Months Ended 12 Months Ended
 Sept 24, Sept 25, Sept 24, Sept 25,
 1993 1992 1993 1992
 Net sales $ 2,140,789 $ 1,767,734 $ 7,976,954 $ 7,086,542
 Costs and expenses:
 Cost of sales 1,590,361 1,012,666 5,248,834 3,991,337
 Research and
 development 164,106 178,546 664,564 602,135
 general and
 administrative 379,169 444,834 1,632,362 1,687,262
 Restructuring costs -- -- 320,856 --
 Total 2,133,636 1,636,046 7,866,616 6,280,734
 Operating income 7,153 131,688 110,338 805,808
 Interest and other
 income (expense),
 net (2,855) 25,751 29,321 49,634
 Income before income
 taxes 4,298 157,439 139,659 855,442
 Provision for income
 taxes 1,634 59,827 53,070 325,069
 Net income $ 2,664 $ 97,612 $ 86,589 $ 530,373
 Earnings per common
 and common equivalent
 share $ 0.02 $ 0.81 $ 0.73 $ 4.33
 Cash dividends paid
 per common share $ 0.12 $ 0.12 $ 0.48 $ 0.48
 Common and common
 equivalent shares
 used in the
 of earnings
 per share 116,592 120,847 119,125 122,490
 (In thousands)
 Sept 24, Sept 25,
 1993 1992
 Current assets:
 Cash and short-term investments $ 892,303 $ 1,435,500
 Accounts receivable 1,381,946 1,087,185
 Inventories 1,506,638 580,097
 Prepaid income taxes 268,085 199,139
 Other current assets 289,383 256,473
 Total current assets 4,338,355 3,558,394
 Net property, plant, and equipment 659,546 462,221
 Other assets 173,511 203,078
 Total $ 5,171,412 $ 4,223,693
 (In thousands) Sept 24, Sept 25,
 1993 1992
 Liabilities and Shareholders' Equity
 Current liabilities:
 Notes payable $ 823,182 $ 184,461
 Accounts payable 742,622 426,936
 Accrued compensation and benefits 144,779 142,382
 Accrued marketing and distribution 174,547 187,767
 Accrued restructuring costs 307,932 105,038
 Other current liabilities 322,140 378,936
 Total current liabilities 2,515,202 1,425,520
 Deferred income taxes 629,832 610,803
 ShareholdersU equity:
 Common stock 203,613 282,310
 Retained earnings 1,842,600 1,904,519
 Other (19,835) 541
 Total shareholders' equity 2,026,378 2,187,370
 Total $ 5,171,412 $ 4,223,693
 -0- 10/14/93
 /CONTACT: Bill Slakey, investor relations, 408-974-3488, or Frank O'Mahony, public relations, 408-974-5420, both of Apple Computer Inc./

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

PK -- SJ006 -- 2472 10/14/93 17:31 EDT
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Publication:PR Newswire
Date:Oct 14, 1993

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