Latest Apple SEC filing draws confusion

Posted:
in General Discussion edited January 2014
The wording of Securities and Exchange Commission filing made by Apple Computer on Friday sparked concerns amongst the investor community because it included references to revenue changes for the company's most recent fiscal quarter.



"The Company anticipates that there will be significant changes in the results of operations for the quarter ended July 1, 2006 compared to the quarter ended June 25, 2005, includingÂ*significant increases in the CompanyÂ?s revenue and expenses," Apple wrote in the filing.



In actuality, the filing offers no new information from what Apple had previously disclosed in recent press releases related to its ongoing stock grant irregularities. The filing is simply a formal quarterly assessment required by the SEC when a corporation is unable to file its quarterly 10-Q report by a prescribed due date.



In the document, Apple is explaining that when filed, its report for the quarter ending July 1, 2006 will includeÂ*significant increases in revenue and expenses when compared the company's year-ago quarter -- not that there will specific changes to the figures reported for the quarter ending July 1, 2006.



In a press release earlier this month, Apple said its ongoing investigation into the company's stock grant issues had turned up additional evidence of irregularities and therefore the company would delay the filing of its Form 10-Q for the quarter ended July 1, 2006.



As part of the same release, Apple also said it will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants.

Comments

  • Reply 1 of 10
    "Quick, Robin... to the Wu-mobile!" - Shaw Wu (aka Wu-Man)
  • Reply 2 of 10
    ^
  • Reply 3 of 10
    Though worded weirdly, it's still a red flag. An increase in revenues might not necessarily offset the increase in expenses. For example, suppose they say "We made $12 million more in X revenue for the July quarter, but restated expenses are actually $89 million higher than before," that'd be quite a black eye. I guess we have to keep an eye on this.
  • Reply 4 of 10
    brendonbrendon Posts: 642member
    Quote:
    Originally Posted by deepkid


    Though worded weirdly, it's still a red flag. An increase in revenues might not necessarily offset the increase in expenses. For example, suppose they say "We made $12 million more in X revenue for the July quarter, but restated expenses are actually $89 million higher than before," that'd be quite a black eye. I guess we have to keep an eye on this.



    I believe that WallStreet has priced the worst, except for Steve getting fired, into the stock so I am all for getting this behind us so the stock price can take off. I fully believe that there are so many up indicators that they have not had time to shine due to this, when everyone is curtain that this is behind AAPL then the stock could jump due to the, thusfar, muted news.
  • Reply 5 of 10
    this could be a good thing for inverester



    if you buy the tough and wait for this to pass could be 1 year could be 2 you could make yourself a nice nest egg



    now to find someone with more money than sense and... ...... ..
  • Reply 6 of 10
    brendonbrendon Posts: 642member
    Everyone including Apple is trying to say what this will look like but the paint is not dry. I would assume that the SEC will have an opinion about what is out of bounds. For example let's say that Steve has goals for his executives, and when they are met he rewards them. OK so the quarter does not meet WS expectations but we did reduce inventory and that was a goal for executive X. I will vote that he will get X shares. Others may have a different opinion but that is my vote. And similar goals and rewards for execuives. I could see that an independent group would see that anything that looks 'funny' should be put on the table, but will the SEC see things the same way? Time will tell but I could see some of this as being not that bad, since the quarterly results were a mixed bag at best. Not a clear cut, WS will love this, no bad news and meeting or beating expectations the only thing is that they don't know it yet, so you get several thousand shares. When the quarter results are a mixed bag then it is difficult to say what the intentions were and I could see the SEC saying some of this is not a problem. The fact that everyoone is getting lawyers is a good sign to me in that the SEC is officially asking questions or soon will be. And that can only be a good thing, get it over with, thanks to Apple and their independent auditors for bracing us for the worst.
  • Reply 7 of 10
    SpamSandwichSpamSandwich Posts: 30,581member
    Nasdaq To Apple --- Warning



    http://www.marketwatch.com/News/Story/Story.aspx?guid={CE65C45C-C14E-4449-AACA-1DB1C42B5640}&siteId=myyahoo





    This is reportedly just a formality, extremely unlikely to result in actual delisting.
  • Reply 8 of 10
    ouraganouragan Posts: 420member
    Quote:

    In two cases, federal prosecutors have brought criminal fraud charges against company executives over backdating options.



    Send the crooks to prison for misappropriating Apple profits, thus depriving stockholders of dividends and customers of lower prices.
  • Reply 9 of 10
    jasenj1jasenj1 Posts: 909member
    Quote:
    Originally Posted by ouragan


    Send the crooks to prison for misappropriating Apple profits, thus depriving stockholders of dividends and customers of lower prices.



    Dividends? I wish we got dividends. The only thing we get is a higher stock price, which only benefits us when we sell. Holding Apple stock hasn't made me one cent - except maybe when they split.



    - Jasen.
  • Reply 10 of 10
    brendonbrendon Posts: 642member
    Quote:
    Originally Posted by jasenj1


    Dividends? I wish we got dividends. The only thing we get is a higher stock price, which only benefits us when we sell. Holding Apple stock hasn't made me one cent - except maybe when they split.



    - Jasen.



    AAPL loosly follows a repeating trend, because WS does not fully understand the Apple market. If you follow technology and Apple it is easy to make money. WS tends to love the Dells and MS, they understand them. Apple leverages OpenSource, and still has a tight integration between software and hardware, analogies abound, none work well. Suffice to say, Apple is set to be profitable at much lower volumes of sale. As the halo effect begins to take on, you will see huge upswings in profit as Apple sells more computer kit, where the real money is at. There are also many other "appliances" that are to be announced maybe even this year. Maybe Cell phone and entertainment appliance / PC. Neither has to be a great success, but could be, to impact profits.
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