[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.

 
AAPL
$94.27
Apple Inc.
+0.33
MSFT
$44.97
Microsoft Corpora
+0.13
GOOG
$598.71
Google Inc.
+9.23

MacTech Search:
Community Search:

Software Updates via MacUpdate

Macs Fan Control 1.1.12 - Monitor and co...
Macs Fan Control allows you to monitor and control almost any aspect of your computer's fans, with support for controlling fan speed, temperature sensors pane, menu-bar icon, and autostart with... Read more
A Better Finder Rename 9.37 - File, phot...
A Better Finder Rename is the most complete renaming solution available on the market today. That's why, since 1996, tens of thousands of hobbyists, professionals and businesses depend on A Better... Read more
MacBook Air EFI Firmware Update 2.9 - Fo...
MacBook Air EFI Firmware Update is recommended for MacBook Air (Mid 2011) models. This update addresses an issue where systems may take longer to wake from sleep than expected and fixes a rare issue... Read more
FileZilla 3.9.0.1 - Fast and reliable FT...
FileZilla (ported from Windows) is a fast and reliable FTP client and server with lots of useful features and an intuitive interface.Version 3.9.0.1: MSW: Fix installation issue with locked DLLs... Read more
OS X Yosemite 10.10 DP4 - Developer Prev...
Note: This is a Developer Preview. You must be a registered Apple Mac Developer to download this update. OS X Yosemite is Apple's newest operating system for Mac. An elegant design that feels... Read more
FinderPop 2.5.6 - Classic Mac utility, n...
FinderPop is a Universal preference pane that extends OS X's contextual menus using a FinderPop Items folder much as the Apple Menu Items folder used to do for the Apple menu. It has other features... Read more
SpiderOak 5.1.7 - Secure cloud backup, s...
SpiderOak is a multi-platform secure online backup, storage, access, and sharing solution engineered for the consumer and small businesses. You must first sign up to use SpiderOak. Running natively... Read more
Espionage 3.6 - Simple, state of the art...
Espionage offers state-of-the-art encryption and plausible deniability for your confidential data. Sometimes, encrypting your data isn't enough to protect it. That's why Espionage 3 goes beyond data... Read more
calibre 1.45.0 - Complete e-library mana...
Calibre is a complete e-book library manager. Organize your collection, convert your books to multiple formats, and sync with all of your devices. Let Calibre be your multi-tasking digital... Read more
iFFmpeg 4.3.1 - Convert multimedia files...
iFFmpeg is a graphical front-end for FFmpeg, a command-line tool used to convert multimedia files between formats. The command line instructions can be very hard to master/understand, so iFFmpeg does... Read more

Latest Forum Discussions

See All

FlyCraft Herbie: Crazy Machines Review
FlyCraft Herbie: Crazy Machines Review By Jennifer Allen on July 22nd, 2014 Our Rating: :: TRICKY FLYINGUniversal App - Designed for iPhone and iPad A tough game of careful thrusting and navigation, FlyCraft Herbie: Crazy Machines... | Read more »
MTN Review
MTN Review By Jessica Fisher on July 22nd, 2014 Our Rating: :: ADORABLE, SERENE, AND AMUSINGUniversal App - Designed for iPhone and iPad MTN is an adorable, talking pet mountain that is less game and more zen garden.   | Read more »
Fly High with Ninja UP! Now Available o...
Fly High with Ninja UP! Now Available on the App Store Posted by Jessica Fisher on July 22nd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Bio Inc. Review
Bio Inc. Review By Nadia Oxford on July 22nd, 2014 Our Rating: :: SICKENING - IN A COMPELLING WAYUniversal App - Designed for iPhone and iPad Bio Inc is about orchestrating the medical destruction of a single person. If that doesn’... | Read more »
HELMUT Review
HELMUT Review By Andrew Fisher on July 21st, 2014 Our Rating: :: TRUNDLE SIMULATOR 2014Universal App - Designed for iPhone and iPad HELMUT is a fun, fleeting time-sink that offers a momentary distraction and nothing else.   | Read more »
Walkr Review
Walkr Review By Jennifer Allen on July 21st, 2014 Our Rating: :: ORIGINAL WALKINGiPhone App - Designed for the iPhone, compatible with the iPad Walking is a bit more exciting thanks to this planet building/discovering sim reliant... | Read more »
Zombie Commando Review
Zombie Commando Review By Jennifer Allen on July 21st, 2014 Our Rating: :: MINDLESS SLAUGHTERUniversal App - Designed for iPhone and iPad Briefly fun but ultimately forgettable, Zombie Commando will scratch an itch then be... | Read more »
Swords & Poker Adventures Review
Swords & Poker Adventures Review By Jennifer Allen on July 21st, 2014 Our Rating: :: SOULLESS POKER PLAYUniversal App - Designed for iPhone and iPad Swords & Poker Adventures is a mishmash of Poker and RPGing, but it lacks... | Read more »
Warhammer 40,000: The Horus Heresy: Drop...
Warhammer 40,000: The Horus Heresy: Drop Assault Coming Soon to iOS Posted by Jennifer Allen on July 21st, 2014 [ permalink ] Coming soon to iOS will be an all-new Warhammer 40,000 tactical strategy game by the name of The Horus Heresy: Drop As | Read more »
A Life Worth Dying For Review
A Life Worth Dying For Review By Jordan Minor on July 21st, 2014 Our Rating: :: A BEAUTIFUL MINDUniversal App - Designed for iPhone and iPad A Life Worth Dying For is a fascinating portrait of a serious subject.   | Read more »

Price Scanner via MacPrices.net

Twelve South HiRise For MacBook – Height-Adju...
If you use your MacBook as a workhorse desktop substitute, as many of us do, a laptop stand combined with an external keyboard and pointing device are pretty much obligatory if you want to avoid... Read more
Why The Mac Was Not Included In The Apple/IBM...
TUAW’s Yoni Heisler cites Fredrick Paul of Network World whoi blogged last week that the Mac’s conspicuous absence from Apple and IBM’s landmark partnership agreement represents a huge squandered... Read more
Save $100 on 13-inch Retina MacBook Pros, plu...
Adorama has 13″ Retina MacBook Pros on sale for $100 off MSRP. Shipping is free, and Adorama charges sales tax in NY & NJ only: - 13″ 2.4GHz/128GB MacBook Pro with Retina Display: $1199 - 13″ 2.... Read more
Blurr it 2.3 for iOS – Quickly Blurs Selected...
Hyderabad, India based TouchLabs has announced a new update of Blurr it 2.3, their photography app for iOS users. Blurr it allows you to blur part of the image to hide potentially sensitive or... Read more
MacBook Airs on sale for $100 off MSRP, start...
Best Buy has the new 2014 MacBook Airs on sale for up to $100 off MSRP on their online store. Choose free home shipping or free local store pickup (if available). Prices valid for online orders only... Read more
Amazon Announces Kindle Unlimited: Unlimited...
Amazon.com has introduced Kindle Unlimited — a new subscription service which allows customers to freely read as much as they want from over 600,000 Kindle books, and listen as much as they want to... Read more
New Linksys Wireless Range Extenders Boost Wi...
Linksys has announced its new lineup of Linksys Wi-Fi Range Extenders. Consumers often experience a weak wireless signal in some parts of their house or apartment caused by blocking elements such as... Read more
MacBook Airs available starting at $719
The Apple Store has Apple Certified Refurbished 2013 & 2012 MacBook Airs in stock today starting at $719. An Apple one-year warranty is included with each MacBook, and shipping is free: 2013... Read more
Get the best deals on iPad minis with Apple r...
The Apple Store has Certified Refurbished 2nd generation iPad minis with Retina Displays available for up to $130 off the cost of new models, starting at $339. Apple’s one-year warranty is included... Read more
Best Buy’s College Student Deals: $100 off Ma...
Take an additional $100 off all MacBooks and iMacs, $50 off iPad Airs and iPad minis, at Best Buy Online with their College Students Deals Savings, valid through July 25th. Anyone with a valid .EDU... Read more

Jobs Board

*Apple* Computer Technician - Fairfield Coun...
Company DescriptionWe are an Apple Authorized Sales and Service Provider. We have been selling and servicing Apple computers in the Fairfield County area for over 20 Read more
*Apple* Computer Technician - Fairfield Coun...
Company DescriptionWe are an Apple Authorized Sales and Service Provider. We have been selling and servicing Apple computers in the Fairfield County area for over 20 Read more
Mac Expert - *Apple* Online Store Mexico -...
…MUST be fluent in English and Spanish to be considered for this position At Apple , we believe that hard work, a fun environment, creativity and innovation fuel the Read more
*Apple* Computer Technician - Fairfield Coun...
Company DescriptionWe are an Apple Authorized Sales and Service Provider. We have been selling and servicing Apple computers in the Fairfield County area for over 20 Read more
Mac Expert - *Apple* Online Store - Apple (...
**Job Summary** At Apple , we believe that hard work, a fun environment, creativity and innovation fuel the ultimate customer experience. We believe each customer Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.