It's Official, 220,000 Flat Panel iMacs Shipped in Quarter
Reuters Technology
Apple Profits Steady as It Rolls Out New iMacs
By Peter Henderson
SAN FRANCISCO (Reuters) - Apple Computer Inc.(NasdaqNM:AAPL - news) on Wednesday reported a steady fiscal second quarter profit from the previous quarter, in line with its forecast, despite rising component prices for its redesigned iMac desktop computer, which Apple has rushed to fans.
Apple forecast that revenues for the current quarter would rise to $1.6 billion, up almost 7 percent from the March-ended period, with earnings per share flat to up slightly, and it said it could make that target without an economic recovery.
Cupertino, California-based Apple reported a net profit of $40 million, or 11 cents per share, for the quarter ended March 30, compared with $43 million, or 12 cents per share a year earlier.
Apple had forecast demand for the new iMac, the latest in a series of computers that have won design raves, would boost sales in the second quarter from $1.38 billion in the first, with profits steady on the first quarter's $38 million, or 11 cents per share.
The average analyst forecast had been for a 10 cents per share profit, Thomson Financial/First Call research said.
Revenue was $1.5 billion, compared with $1.43 billion a year earlier. Analysts had forecast sales of $1.46 billion.
Apple shares ticked lower to $25.66 in after-hours trade from $26.11 at the Nasdaq close.
``The stock has performed very well as of late. There may have been a certain expectation that they would exceed numbers,'' said Gerard Klauer Mattison analyst David Bailey, who credited Apple with posting strong sales in a tough economy.
David Dreman, chairman of Dreman Value Management, which owns about 2.7 million Apple shares, nearly 0.8 percent of the company, said he had sold other technology stocks in recent rallies but was holding on to Apple.
``If these estimates are without any kind of economic recovery or PC recovery, if they can hold those estimates in this type of environment, then I don't think that is bad. I would not be tempted to sell here,'' he said.
In addition to its new computers, Apple has promoted a revamped operating system, OS X, and a suite of free software products, aiming to make the Macintosh a ``digital hub'' connecting video and other digital devices, including its successful iPod portable digital music jukebox.
Apple still faces investor skepticism that it will ever be more than a niche player, even as it tries to revitalize its brand and woo customers from Microsoft Corp. (NasdaqNM:MSFT - news) Windows machines by launching glitzy stores in high-profile locations.
Chief Financial Officer Fred Anderson told a conference call that Apple would add 20 stores this calendar year on top of the first wave of 29 stores and that he expected the retail outlets to have a profitable quarter by year end.
Apple, which helped launch the personal computer with its flagship Macintosh line in 1984, said it shipped 813,000 of the machines in the past quarter, including some 220,000 of the flat screen, desktop-lamp-shaped iMacs.
``We've clearly got a winner here,'' Apple's CEO Steve Jobs said in a statement.
CAUTION ON COMPONENTS
Anderson said in a telephone interview that iMac demand had not slowed after Apple raised the price by $100 to reflect higher component costs.
Prices of computer memory tripled earlier this year, after PC makers offering free memory upgrades turned a supply glut into a deficit, and demand for flat panels has risen even as PC sales stagnated.
Anderson said he expected memory prices to be steady or dip and flat panels to rise slightly in the quarter, but he kept his profit target conservative due to component uncertainty.
``I don't want to be wrong,'' he told a conference call.
Anderson said Apple's gross profit margin, 27.4 percent, would dip in the current quarter since it had a backlog of iMac orders to fill at the original price that would last until early May and because it was still rushing iMacs to market by air freight.
The June quarter also marked the beginning of buying by schools, who favor low-end consumer machines. Schools had pushed out orders in the first couple of fiscal quarters of this year, facing low tax receipts, he said.
Apple shares have rallied since the beginning of October, like much of the technology sector, rising more than 60 percent, compared with nearly 50 percent for the American Stock Exchange computer hardware index (^HWI - news).
Value investors have also been attracted to Apple's $4.3 billion in cash holdings, more than $11 per share.
[ 04-18-2002: Message edited by: MacsRGood4U ]</p>
Apple Profits Steady as It Rolls Out New iMacs
By Peter Henderson
SAN FRANCISCO (Reuters) - Apple Computer Inc.(NasdaqNM:AAPL - news) on Wednesday reported a steady fiscal second quarter profit from the previous quarter, in line with its forecast, despite rising component prices for its redesigned iMac desktop computer, which Apple has rushed to fans.
Apple forecast that revenues for the current quarter would rise to $1.6 billion, up almost 7 percent from the March-ended period, with earnings per share flat to up slightly, and it said it could make that target without an economic recovery.
Cupertino, California-based Apple reported a net profit of $40 million, or 11 cents per share, for the quarter ended March 30, compared with $43 million, or 12 cents per share a year earlier.
Apple had forecast demand for the new iMac, the latest in a series of computers that have won design raves, would boost sales in the second quarter from $1.38 billion in the first, with profits steady on the first quarter's $38 million, or 11 cents per share.
The average analyst forecast had been for a 10 cents per share profit, Thomson Financial/First Call research said.
Revenue was $1.5 billion, compared with $1.43 billion a year earlier. Analysts had forecast sales of $1.46 billion.
Apple shares ticked lower to $25.66 in after-hours trade from $26.11 at the Nasdaq close.
``The stock has performed very well as of late. There may have been a certain expectation that they would exceed numbers,'' said Gerard Klauer Mattison analyst David Bailey, who credited Apple with posting strong sales in a tough economy.
David Dreman, chairman of Dreman Value Management, which owns about 2.7 million Apple shares, nearly 0.8 percent of the company, said he had sold other technology stocks in recent rallies but was holding on to Apple.
``If these estimates are without any kind of economic recovery or PC recovery, if they can hold those estimates in this type of environment, then I don't think that is bad. I would not be tempted to sell here,'' he said.
In addition to its new computers, Apple has promoted a revamped operating system, OS X, and a suite of free software products, aiming to make the Macintosh a ``digital hub'' connecting video and other digital devices, including its successful iPod portable digital music jukebox.
Apple still faces investor skepticism that it will ever be more than a niche player, even as it tries to revitalize its brand and woo customers from Microsoft Corp. (NasdaqNM:MSFT - news) Windows machines by launching glitzy stores in high-profile locations.
Chief Financial Officer Fred Anderson told a conference call that Apple would add 20 stores this calendar year on top of the first wave of 29 stores and that he expected the retail outlets to have a profitable quarter by year end.
Apple, which helped launch the personal computer with its flagship Macintosh line in 1984, said it shipped 813,000 of the machines in the past quarter, including some 220,000 of the flat screen, desktop-lamp-shaped iMacs.
``We've clearly got a winner here,'' Apple's CEO Steve Jobs said in a statement.
CAUTION ON COMPONENTS
Anderson said in a telephone interview that iMac demand had not slowed after Apple raised the price by $100 to reflect higher component costs.
Prices of computer memory tripled earlier this year, after PC makers offering free memory upgrades turned a supply glut into a deficit, and demand for flat panels has risen even as PC sales stagnated.
Anderson said he expected memory prices to be steady or dip and flat panels to rise slightly in the quarter, but he kept his profit target conservative due to component uncertainty.
``I don't want to be wrong,'' he told a conference call.
Anderson said Apple's gross profit margin, 27.4 percent, would dip in the current quarter since it had a backlog of iMac orders to fill at the original price that would last until early May and because it was still rushing iMacs to market by air freight.
The June quarter also marked the beginning of buying by schools, who favor low-end consumer machines. Schools had pushed out orders in the first couple of fiscal quarters of this year, facing low tax receipts, he said.
Apple shares have rallied since the beginning of October, like much of the technology sector, rising more than 60 percent, compared with nearly 50 percent for the American Stock Exchange computer hardware index (^HWI - news).
Value investors have also been attracted to Apple's $4.3 billion in cash holdings, more than $11 per share.
[ 04-18-2002: Message edited by: MacsRGood4U ]</p>
Comments
Well, considering how fast they pushed out iMacs in those last 2 weeks before the end of the quarter, that must be one hell of a backlog to last another month+. But that's good news to hear that demand is still so high .