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APPLE COMPUTER REPORTS INCREASED REVENUES AND EARNINGS

 APPLE COMPUTER REPORTS INCREASED REVENUES AND EARNINGS
 CUPERTINO, Calif., July 16 /PRNewswire/ -- Apple Computer Inc. (NASDAQ: AAPL) reported today revenues and net income for its third fiscal quarter, which ended June 26, 1992.
 Revenues for the third quarter of fiscal 1992 were $1.740 billion, a 13.8 percent increase from the $1.529 billion reported in the third quarter of the prior year. Net income for the third quarter of fiscal 1992 was $132 million, as compared to a net loss of $53 million in the third quarter of fiscal 1991. The prior year third quarter net loss included a one time charge of $224.0 million, or $138.9 million after tax, for restructuring, cost reduction, and other activities.
 "Despite a tough business environment, Apple has been consistent in achieving the milestones that we set out," said John Sculley, chairman and chief executive officer. "Our sales momentum this past quarter has been
strong, led by successful products. At the same time, we are building for our future through partnerships and new technology foundations. We continue to make progress towards our goals".
 Earnings in the third quarter of fiscal 1992 were $1.07 per share, an increase over the loss of $.44 per share in the third quarter of fiscal 1991. The prior year net loss included $1.16 per share for restructuring and other expenses. Gross margin was 44.3 percent of sales in the third quarter of fiscal 1992 compared to 45.8 percent of sales in the prior year period.
 In the third quarter of fiscal 1992, international sales were 44 percent of net sales, unchanged from the third quarter of the prior year.
 "Apple's business is now one characterized by broad product line strengths in CPU, software and peripheral products, sold into multiple global and end-user markets," said Sculley.
 "Our PowerBook computers have become one of the most successful product lines in our history. With over 300,000 sold in the last three fiscal quarters, we expect to achieve our $1.0 billion target for these products in their first year of introduction. During the last quarter, we have seen a strong start to our education sales season, where Apple has significant mind and market share strength. Our best selling product, the Macintosh LCll, sold more than 200,000 units in the quarter alone. At the same time, our mid-range has shown continued strength, and we are growing our imaging products business.
 "We continue to open new channels to reach new customers, especially in consumer markets. We anticipate establishing up to 1,800 new retail locations in the U.S. later this year.
 "With a full year behind us since undertaking restructuring activities, we are managing our financial model to lower operating expenses as a percentage of sales. While Apple's gross margins have improved during the third quarter as compared to the previous quarter, due to product mix, we are conscious of the dramatic pressures driving gross margin trends in the industry as a whole. We must remain vigilant in managing our operating expenses to meet this challenge over time.
 "With a core business that is growing positively, we are also building for the future based on our strengths as a technology company. At the Consumer Electronics Show in June, we showcased Newton, Apple's first in a family of personal digital assistants. Due to come to market in 1993, the Newton technology aims at new product categories arising out of the convergence of digital and information technologies. We see this as one of the biggest industry opportunities for Apple since the Macintosh was launched in 1984.
 "We continue to build strong partnerships to expand Apple's business futures. During the quarter we announced the leadership of Kaleida, the joint venture Apple formed with IBM to promote new multimedia software technologies. We also announced a new partnership with Toshiba which will become one of the first companies to license core multimedia software technology from Kaleida.
 "We have outlined our business strategies, and we continue to execute upon them consistently. Challenges remain. However, we are focused on maintaining positive momentum in our core businesses while building on our market and technology strengths for the future."
 APPLE COMPUTER INC.
 Consolidated Statements of Income (Unaudited)
 (In thousands, except per
 share amounts) Three Months Ended Nine Months Ended
 June 26, June 28, June 26, June 28,
 1992 1991 1992 1991
 Net sales $ 1,740,171 $ 1,528,604 $ 5,318,808 $ 4,801,788
 Costs and expenses:
 Cost of sales 968,844 828,354 2,978,671 2,461,823
 Research &
 development 156,609 151,628 423,589 438,143
 Selling, general
 and
 administrative 413,657 413,420 1,242,428 1,351,683
 Restructuring costs
 and other -- 224,043 -- 224,043
 Total 1,539,110 1,617,445 4,644,688 4,475,692
 Operating income
 (loss) 201,061 (88,841) 674,120 326,096
 Interest and other
 income, net 11,302 3,268 23,883 42,617
 Income (loss) before
 income taxes 212,363 (85,573) 698,003 368,713
 Income tax provision
 (benefit) 80,698 (32,518) 265,242 140,110
 Net income (loss) $ 131,665 $ (53,055) $ 432,761 $ 228,603
 Earnings (loss) per
 common and common
 equivalent share $ 1.07 $ (.44) $ 3.52 $ 1.91
 Cash dividends paid
 per common share $ .12 $ .12 $ .36 $ .36
 Common and common
 equivalent shares
 used in the
 calculations of
 earnings (loss) per
 share 122,937 119,820 123,037 119,960
 APPLE COMPUTER INC.
 Consolidated Balance Sheets (Unaudited)
 (In thousands) June 26, June 28,
 1992 1991
 Assets
 Current assets:
 Cash & short-term investments $ 1,475,563 $ 889,744
 Accounts receivable 956,629 767,095
 Inventories 535,803 733,347
 Prepaid income taxes 224,522 205,423
 Other current assets 230,635 232,725
 Total current assets 3,423,152 2,828,334
 Net property, plant, and equipment 467,901 445,136
 Other assets 230,103 181,991
 Total $ 4,121,156 $ 3,455,461
 Liabilities and Shareholders' Equity
 Current liabilities $ 1,357,707 $ 1,286,811
 Deferred income taxes 642,054 502,303
 Shareholders' equity 2,121,395 1,666,347
 Total $ 4,121,156 $ 3,455,461
 -0- 7/16/92
 NOTE: Apple, the Apple logo and Macintosh are registered trademarks of Apple Computer Inc. PowerBook and Newton are trademarks of Apple Computer Inc.
 /CONTACT: Mary Ann Cusenza of Apple Computer Inc., Investor Relations, 408-974-4178; or Cindy McCaffrey Apple Computer Inc., Public Relations, 408-974-1578/
 (AAPL) CO: Apple Computer ST: California IN: CPR SU: ERN


RM -- SJ003 -- 9961 07/16/92 16:37 EDT
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