[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

Rodeo Stampede guide to running a better...
In Rodeo Stampede, honing your skills so you can jump from animal to animal and outrun the herd as long as possible is only half the fun. Once you've tamed a few animals, you can bring them home with you. [Read more] | Read more »
VoxSyn (Music)
VoxSyn 1.0 Device: iOS Universal Category: Music Price: $6.99, Version: 1.0 (iTunes) Description: VoxSyn turns your voice into the most flexible vocal sound generator ever. Instantly following even subtle modulations of pitch and... | Read more »
Catch Battleplans on Google Play from Ju...
Real-time strategy title Battleplans is due for release on Google Play on June 30th, following its release for iOS systems last month. With its simple interface and pretty graphics, the crowd-pleaser brings a formerly overlooked genre out for the... | Read more »
iDoyle: The interactive Adventures of Sh...
iDoyle: The interactive Adventures of Sherlock Holmes - A Scandal in Bohemia 1.0 Device: iOS Universal Category: Books Price: $1.99, Version: 1.0 (iTunes) Description: Special Release Price $1.99 (Normally $3.99) | Read more »
Five popular free apps to help you slim...
Thanks to retail and advertising, we're used to thinking one season ahead. Here we are just a week into the summer and we're conditioned to start thinking about the fall. [Read more] | Read more »
How to ride longer and tame more animals...
It's hard to accurately describe Rodeo Stampede to people who haven't seen it yet. It's like if someone took Crossy Roadand Disco Zoo and put them in a blender, yet with a unique game mechanic that's still simple and fun for anyone. [Read more] | Read more »
Teeny Titans - A Teen Titans Go! Figure...
Teeny Titans - A Teen Titans Go! Figure Battling Game 1.0.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.0.0 (iTunes) Description: Teeny Titans, GO! Join Robin for a figure battling RPG of epic proportions! TEENY... | Read more »
NinjAwesome: Tips and tricks to be a mor...
Sorry about that headline, but I'm going to go ahead and assume that GameResort would not have named its game NinjAwesome without expecting some of that. It is, in fact, pretty awesome the way it combines an endless runner and old school arcade... | Read more »
Into Mirror (Games)
Into Mirror 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: "Is all that we see or seem, but a dream within a dream?"- Edgar Allan Poe New game by Lemon Jam Studio, the team behind Pursuit... | Read more »
Perchang (Games)
Perchang 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Welcome to Perchang! A test of skill and puzzle solving across 60 stunning levels. | Read more »

Price Scanner via MacPrices.net

15-inch Retina MacBook Pros on sale for $200-...
B&H Photo has 15″ Retina MacBook Pros on sale for up to $210 off MSRP. Shipping is free, and B&H charges NY tax only: - 15″ 2.2GHz Retina MacBook Pro: $1799.99 $200 off MSRP - 15″ 2.5GHz... Read more
Mac minis on sale for up to $100 off MSRP
B&H Photo has Mac minis on sale for up to $100 off MSRP including free shipping plus NY sales tax only: - 1.4GHz Mac mini: $449 $50 off MSRP - 2.6GHz Mac mini: $649 $50 off MSRP - 2.8GHz Mac mini... Read more
Clearance 2015 13-inch MacBook Airs available...
B&H Photo has clearance 2015 13″ MacBook Airs available for $300 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 1.6GHz/4GB/128GB MacBook Air (MJVE2LL/A): $799.... Read more
Apple refurbished Mac minis available for up...
Apple has Certified Refurbished Mac minis available 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
ABBYY TextGrabber: 1,000,000 Installs in 5 Da...
ABBYY, an international OCR technologies provider, has announced that their image-to-text application TextGrabber, got installed 1,000,000 times in just five days while being featured by the App... Read more
New SkinIt Waterproof Case For iPhone 6
With its impact and waterproof design, the Skinit Waterproof case provides security and protection to guarantee your phone will get you through even the most demanding outdoor conditions. The impact-... Read more
iMacs on sale for up to $150 off MSRP
B&H Photo has 21″ and 27″ iMacs on sale for up to $150 off MSRP including free shipping plus NY sales tax only: - 27″ 3.3GHz iMac 5K: $2181.11 $118 off MSRP - 27″ 3.2GHz/1TB Fusion iMac 5K: $1949... Read more
12-inch 1.1GHz Retina MacBooks on sale for $5...
B&H Photo has 2016 12″ 1.1GHz/256GB Retina MacBooks on sale for up to $50 off MSRP. Shipping is free, and B&H charges NY tax only: - 12″ 1.1GHz Space Gray Retina MacBook: $1249 $50 off MSRP... Read more
WWDC Announcements Revisited Still Underwhelm...
I was disappointed that no new MacBook hardware was announced at this year’s all-software World Wide Developer’s Conference. Not even a hint about what’s in the development pipeline. Of course, we... Read more
Twelve South Compass 2 iPad Stand Now Availab...
Twelve South has updated its most popular iPad stand, Compass 2, with the introduction of two new colors — Gold and Rose Gold. These new color options n perfectly complement the new Rose Gold iPad... Read more

Jobs Board

*Apple* Solutions Consultant - APPLE (United...
Job Summary As an Apple Solutions Consultant, you'll be the link between our future customers and our products. You'll showcase your entrepreneurial spirit as you Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions, Towson...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Professional Learning Specialist - A...
Job Summary The Apple Professional Learning Specialist is a full-time position for one year with Apple in the Phoenix, AZ area. This position requires a high Read more
Executive Director, Big *Apple* Performing...
Big Apple Performing Arts® (BAPA) is looking for a dynamic new Executive Director to lead the organization through its next phase of growth—an exciting opportunity Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.