[MD1] Apple Reports Second Fiscal Quarter Results
TweetFollow Us on Twitter

[MD1] Apple Reports Second Fiscal Quarter Results

Apple Reports Second Fiscal Quarter Results

Company Recaps Extensive New Product Offerings and Restructuring Progress

CUPERTINO, Calif.--April 16, 1997--Apple Computer, Inc. today announced
financial results for the Company's fiscal 1997 second quarter ended March
28, 1997. Revenues for the quarter were $1.6 billion, compared to $2.1
billion in the quarter ended Dec. 27, 1996 and $2.2 billion in the quarter
ended March 29, 1996. International sales accounted for 49 percent of total
revenues in the current quarter.

As previously indicated, the Company incurred two large charges of a
non-operating nature during the quarter. Pursuant to generally accepted
accounting principles, the Company recorded a charge of $375 million for
the write-off of in-process research and development activity related to
its Feb. 4, 1997 acquisition of NeXT Software, Inc.

Additionally, the Company recorded a charge of $155 million to increase
reserves to cover the costs of restructuring activities previously
announced by the Company on March 14, 1997.

The Company's total loss for the quarter was $708 million, or $(5.64) per
share, compared to a net loss of $120 million, or $(.96) per share in the
December 1996 quarter and a net loss of $740 million, or $(5.99) per share,
in the year-ago quarter. Exclusive of the charges for restructuring and the
write-off of in-process research and development, the Company's current
quarter loss from operations was $186 million, or $(1.48) per share.

Gross margins for the quarter were 19 percent, compared to 19 percent in
the December quarter, and compared to -19 percent (or 9 percent before
inventory adjustments) in the year-ago quarter.

Aside from the charges for restructuring and the write-off of in-process
research and development, operating expenses for the quarter were $489
million, down $32 million from the December quarter and down $65 million
from the year ago quarter.

"While the operating results are disappointing, we made significant
progress toward executing our strategic plans during the quarter," said
Apple chairman and chief executive officer Dr. Gilbert F. Amelio. "We've
streamlined our organization and narrowed our focus, we're divesting
non-core assets, and we're executing a plan to reduce annual operating
expenses by $500 million. We've also made great progress toward
strengthening Apple's competitive position by introducing several exciting
new products to the market, and we've completed the NeXT acquisition,
paving the way for delivery of our modern OS, code-named 'Rhapsody.'"

"We experienced continued success in asset management during the quarter,"
said Apple executive vice president and chief financial officer Fred
Anderson. "Our cash balance at the end of Q2 was in excess of $1.4 billion,
our inventories were just over $500 million, and despite the quarter's
loss, we generated positive cash flow from operations."

"We expect to see rapid improvements in the Company's financial performance
as the results of restructuring kick in," added Anderson. "We anticipate
higher revenues and a significantly reduced operating loss in the Company's
third fiscal quarter and continued progress toward our goal of returning to
profitability in the fourth quarter."

New Products

Apple introduced an array of new products in recent weeks. On April 4, the
Company announced the Power Macintosh 6500 series of computers for home and
small business customers, including the first 300 MHz system to hit the
personal computer market. In addition, the Company introduced two
PC-compatible computers--the Power Macintosh 7300/180, which includes a 166
MHz Intel Pentium processor; and the Power Macintosh 4400/200, which
includes a 133 MHz Cyrix PR166 6x86 processor.

Earlier in the quarter, Apple announced the Macintosh PowerBook 3400
series, featuring the first 240 MHz notebook computer on the market, as
well as a new line of Power Macintosh computers for business, professional
publishing, and Internet/media authoring.

For education customers, Apple introduced its most comprehensive lineup of
new products in 20 years, including the eMate 300, three powerful
all-in-one desktop models, two models in a powerful new tower design, and
three new solution bundles for secondary schools.

Claris Corporation, Apple's wholly-owned software subsidiary, achieved
record-breaking revenues of $70 million during the quarter. Revenue growth
was driven in large part by an unprecedented level of operating system
upgrades to Mac OS 7.6, introduced in January.

"In the last three months, we executed one of the most exciting and
comprehensive series of product introductions in the history of Apple,"
said Apple executive vice president of marketing Guerrino De Luca. "These
products demonstrate the ongoing innovation at Apple and our commitment to
providing distinctive, powerful, easy-to-use products to meet the needs of
our customers."

Except for the historical information contained herein, the statements
regarding establishing competitive leadership, effecting innovation,
continuing focus on certain industry growth areas, reduction of the
Company's operating expenses and losses, and the timing of execution of the
Company's business plans are forward-looking statements that involve risks
and uncertainties. Potential risks and uncertainties include, without
limitation, continued competitive pressures in the marketplace; the effect
competitive factors and the Company's reaction to them may have on consumer
and business buying decisions with respect to the Company's products; the
consequences competitive factors and buying decisions may have on current
inventory valuations; the Company's ability to successfully integrate the
personnel, products and operations of NeXT Software; the ability of the
Company to make timely delivery of successful technological innovations to
the marketplace; the ability of the Company to successfully resolve its
quality issues; the effect of any future losses on the Company's needs for
liquidity; the effect of the announced business restructuring on the future
performance of the Company, especially the performance of the Company's
employees; and the need for any future restructuring, and the effect that
it might have on the performance of the Company. More information on
potential factors that could affect the Company's financial results is
included in the Company's Form 10-K for the 1996 fiscal year and will also
be included in the Company's Form 10-Q for the second fiscal quarter, to be
filed with the SEC.

Apple Computer, Inc., a recognized innovator in the information industry
and leader in multimedia technologies, creates powerful solutions based on
easy-to-use personal computers, servers, peripherals, software, handheld
computers and Internet content. Headquartered in Cupertino, California,
Apple develops, manufactures, licenses and markets solutions, products,
technologies and services for business, education, consumer, entertainment,
scientific and engineering and government customers in more than 140
countries.

Katie Cotton
Apple Computer, Inc.
(408) 974-7269
email: katiec@apple.com

Investor Relations Contact:
Nancy Paxton
Apple Computer, Inc.
(408) 974-5420
email: paxton1@apple.com

Apple's home page on the World Wide Web:
http://www.apple.com/

Apple, the Apple logo, Macintosh, Power Macintosh, and PowerBook are
registered trademarks and eMate is a trademark of Apple Computer, Inc.
Additional company and product names may be trademarks or registered
trademarks of the individual companies and are respectfully acknowledged.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

iExplorer 4.1.9 - View and transfer file...
iExplorer is an iPhone browser for Mac lets you view the files on your iOS device. By using a drag and drop interface, you can quickly copy files and folders between your Mac and your iPhone or... Read more
PCalc 4.5.3 - Full-featured scientific c...
PCalc is a full-featured, scriptable scientific calculator with support for hexadecimal, octal, and binary calculations, as well as an RPN mode, programmable functions, and an extensive set of unit... Read more
Slack 2.9.0 - Collaborative communicatio...
Slack is a collaborative communication app that simplifies real-time messaging, archiving, and search for modern working teams. Version 2.9.0: Slack now officially, and fully, supports Japanese.... Read more
Microsoft Office 2016 15.40 - Popular pr...
Microsoft Office 2016 - Unmistakably Office, designed for Mac. The new versions of Word, Excel, PowerPoint, Outlook and OneNote provide the best of both worlds for Mac users - the familiar Office... Read more
Apple iOS 11.1.2 - The latest version of...
iOS 11 sets a new standard for what is already the world’s most advanced mobile operating system. It makes iPhone better than before. It makes iPad more capable than ever. And now it opens up both to... Read more
Adobe InCopy CC 2018 13.0.1.207 - Create...
InCopy CC 2018 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous InCopy customer). Adobe InCopy CC 2018, ideal for large team projects... Read more
Adobe InDesign CC 2018 13.0.1.207 - Prof...
InDesign CC 2018 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous InDesign customer). Adobe InDesign CC 2018 is part of Creative Cloud.... Read more
Tor Browser Bundle 7.0.10 - Anonymize We...
The Tor Browser Bundle is an easy-to-use portable package of Tor, Vidalia, Torbutton, and a Firefox fork preconfigured to work together out of the box. It contains a modified copy of Firefox that... Read more
OmniOutliner Pro 5.2 - Pro version of th...
OmniOutliner Pro is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
iShowU Instant 1.2.3 - Full-featured scr...
iShowU Instant gives you real-time screen recording like you've never seen before! It is the fastest, most feature-filled real-time screen capture tool from shinywhitebox yet. All of the features you... Read more

Latest Forum Discussions

See All

The best new games we played this week -...
The weekend is upon us friends, and it's time to take a look back and reflect on all of the wonderful games we've played over the past few days. This week was jam packed with new releases. There were some big, long awaited launches, some fun... | Read more »
Lineage II: Revolution guide - tips and...
At long last, Lineage II: Revolution has now come to western shores, bring Netmarble's sweeping MMORPG to mobile devices. It's an addictive, epic experience, but some of the systems in the game can be a bit overwhelming. Here are a few tips to help... | Read more »
A Boy and His Blob (Games)
A Boy and His Blob 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: | Read more »
Fight terrible monsters and collect epic...
Released on Western markets early last month, Dragon Project, created by Japanese developer COLOPL, brings epic monster hunting action to mobile for the very first time. Collect a huge array of weapons and armor, and join up with friends to fight... | Read more »
I Am The Hero (Games)
I Am The Hero 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: I Am The Hero is a pixel art, beat 'em up, fighting game that tells the story of a "Hero" with a glorious but mysterious past.... | Read more »
Kauldron (Music)
Kauldron 1.0 Device: iOS Universal Category: Music Price: $3.99, Version: 1.0 (iTunes) Description: Kauldron is our warmest sounding, punchiest synth yet! A completely new modeling technology, combined with carefully designed... | Read more »
Lineage II: Revolution is mobile’s bigge...
NCSoft’s hit fantasy MMORPG series has just made the leap to mobile with the help of Netmarble in Lineage II: Revolution. With over 1.5 million players having already pre-registered ahead of the game’s launch, Revolution hit the app stores... | Read more »
Swing skilfully in new physics-based pla...
Sometimes it’s the most difficult of obstacles that can be the most rewarding. One game hoping to prove this is OCMO, the new tough but fair platformer from developers Team Ocmo. Primed to set every speedrunner’s pulse racing, as an otherworldly... | Read more »
RPGolf (Games)
RPGolf 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Once upon a time, the kingdom was a land of peace, harmony, and an all-consuming passion for the greatest sport - GOLF. Everyone in the... | Read more »
Everything you need to know about Fire E...
Fire Emblem Heroes is getting its biggest update yet as Nintendo unveiled Book II last night, featuring a whole new set of story missions and yes, collectible heroes. The update's not out just yet, but here's what you can expect when the new... | Read more »

Price Scanner via MacPrices.net

Early Black Friday sale: Apple iMacs for up t...
B&H Photo has 27-inch iMacs in stock and on sale for up $130-$150 off MSRP including free shipping. B&H charges sales tax in NY & NJ only: – 27″ 3.8GHz iMac (MNED2LL/A): $2149 $150 off... Read more
Apple restocks refurbished Mac minis starting...
Apple has restocked Certified Refurbished Mac minis starting at $419. Apple’s one-year warranty is included with each mini, and shipping is free: – 1.4GHz Mac mini: $419 $80 off MSRP – 2.6GHz Mac... Read more
Save on 12″ MacBooks, Apple refurbished model...
Apple has Certified Refurbished 2017 12″ Retina MacBooks available for $200-$240 off the cost of new models. Apple will include a standard one-year warranty with each MacBook, and shipping is free.... Read more
Early Holiday sale: 12″ iPad Pros for up to $...
B&H Photo has 12″ iPad Pros on sale today for up to $130 off MSRP. Shipping is free, and B&H collects no sales tax outside NY & NJ: – 12″ 64GB WiFi iPad Pro: $749, save $50 – 12″ 256GB... Read more
Holiday sale prices on Apple 13″ MacBook Pros...
B&H Photo has 2017 13″ MacBook Pros in stock today and on sale for $100-$150 off MSRP, each including free shipping plus NY & NJ sales tax only: – 13-inch 2.3GHz/128GB Space Gray MacBook Pro... Read more
Sale: 13″ MacBook Airs starting at $899, $100...
B&H Photo has 2017 13″ MacBook Airs on sale today for $100 off MSRP including free shipping. B&H charges NY & NJ sales tax only: – 13″ 1.8GHz/128GB MacBook Air (MQD32LL/A): $899, $100 off... Read more
Week’s Best Deal on 13″ MacBook Pros: Apple r...
Apple has a full line of Apple Certified Refurbished 2017 13″ MacBook Pros available for $200-$300 off MSRP. A standard Apple one-year warranty is included with each MacBook, and shipping is free.... Read more
Deal: 15″ 2.6GHz MacBook Pro for $1799 w/free...
B&H Photo has clearance 2016 15″ 2.6GHz Touch Bar MacBook Pros in stock today and available for $600 off original MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: – 15″ 2.... Read more
Black Friday pricing on the 1.4GHz Mac mini....
MacMall has the 1.4GHz Mac mini on sale for $399 including free shipping. Their price is $100 off MSRP (20% off), and it’s the lowest price for available for this model from any reseller. MacMall’s... Read more
Early Black Friday deal: 15″ Apple MacBook Pr...
B&H Photo has 15″ MacBook Pros on sale for up to $200 off MSRP. Shipping is free, and B&H charges sales tax in NY & NJ only: – 15″ 2.8GHz MacBook Pro Space Gray (MPTR2LL/A): $2199, $200... Read more

Jobs Board

*Apple* Solution Consultant - Apple (United...
# Apple Solution Consultant - Rochester, MN Job Number: 113037950 Rochester, MN, Minnesota, United States Posted: 19-Sep-2017 Weekly Hours: 40.00 **Job Summary** Are Read more
Sr. Experience Producer, Today at *Apple* -...
# Sr. Experience Producer, Today at Apple Job Number: 56495251 Santa Clara Valley, California, United States Posted: 23-Jun-2017 Weekly Hours: 40.00 **Job Summary** Read more
AppleCare Support Engineer for *Apple* Medi...
…Summary AppleCare Engineering, Software & Services, is a group that works to represent Apple 's World Wide contact centers and Apple 's customers to groups within Read more
Site Reliability Engineer, *Apple* Pay - Ap...
Job Summary The Apple Pay Site Reliability Engineering Team is hiring for multiple roles focused on the front line customer experience and the back end integration Read more
*Apple* Solutions Consultant - Apple (United...
# Apple Solutions Consultant Job Number: 86078534 Fairless Hills, Pennsylvania, United States Posted: 07-Jul-2017 Weekly Hours: 40.00 **Job Summary** As an Apple Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.