Mac sales lift Apple to $818 million third quarter profit

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in General Discussion edited January 2014
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  • Reply 1 of 43
    "?iPhone is off to a great start?we hope to sell our one-millionth iPhone by the end of its first full quarter of sales?and our new product pipeline is very strong.? -- Steve Jobs
  • Reply 2 of 43
    Apple Reports Third Quarter Results

    Record June Quarter Revenue and Profit



    CUPERTINO, California—July 25, 2007—Apple® today announced financial results for its fiscal 2007 third quarter ended June 30, 2007. The Company posted revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share. These results compare to revenue of $4.37 billion and net quarterly profit of $472 million, or $.54 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent, up from 30.3 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter’s revenue.



    Apple shipped 1,764,000 Macintosh® computers, representing 33 percent growth over the year-ago quarter and exceeding the previous company record for quarterly Mac® shipments by over 150,000. The Company also sold 9,815,000 iPods during the quarter, representing 21 percent growth over the year-ago quarter.



    “We’re thrilled to report the highest June quarter revenue and profit in Apple’s history, along with the highest quarterly Mac sales ever,” said Steve Jobs, Apple’s CEO. “iPhone is off to a great start—we hope to sell our one-millionth iPhone by the end of its first full quarter of sales—and our new product pipeline is very strong.”



    “We are very pleased to report strong financial results including cash flow from operations exceeding $1.2 billion for the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2007, we expect revenue of about $5.7 billion and earnings per diluted share of about $.65.”



    Apple will provide live streaming of its Q3 2007 financial results conference call utilizing QuickTime®, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, July 25, 2007 at www.apple.com/quicktime/qtv/earningsq307/ and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at www.apple.com/quicktime.



    This press release contains forward-looking statements about the Company’s estimated revenue, iPhone™ sales and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include potential litigation and government enforcement actions that may result from the matters investigated by the special committee of the board of directors and the restatement of the Company’s consolidated financial statements; unfavorable results of legal proceedings; the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; continued competitive pressures in the marketplace; the Company’s reliance on a sole U.S. service provider for iPhone; the continued availability on acceptable terms of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the effect that product quality problems could have on the Company’s sales and operating profits; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company’s dependency on the performance of distributors and other resellers of the Company’s products; the Company’s reliance on the availability of third-party digital content; and the potential impact of a finding that the Company has infringed on the intellectual property rights of others. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 30, 2006, its Forms 10-Q for the quarters ended December 30, 2006 and March 31, 2007, and its Form 10-Q for the quarter ended June 30, 2007 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.



    Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.



    Press Contacts:

    Steve Dowling

    (408) 974-1896

    [email protected]



    Investor Relations Contacts:

    Nancy Paxton

    (408) 974-5420

    [email protected]



    Joan Hoover

    (408) 974-4570

    [email protected]



    NOTE TO EDITORS: For additional information visit Apple’s PR website, or call Apple's Media Helpline at (408) 974-2042.
  • Reply 3 of 43
    AppleInsiderAppleInsider Posts: 53,124administrator
    Apple said Wednesday that third quarter profits surged 73 percent to $818 million, or $0.92 per diluted share, on sales of $5.41 billion.



    The results compare to revenue of $4.37 billion and net quarterly profit of $472 million, or $.54 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent, up from 30.3 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter's revenue.



    "We are very pleased to report strong financial results including cash flow from operations exceeding $1.2 billion for the quarter," said Apple chief executive Peter Oppenheimer. "Looking ahead to the fourth fiscal quarter of 2007, we expect revenue of about $5.7 billion and earnings per diluted share of about $.65."



    Apple shipped 1,764,000 Macintosh computers, representing 33 percent growth over the year-ago quarter and exceeding the previous company record for quarterly Mac shipments by over 150,000. The Company also sold 9,815,000 iPods during the quarter, representing 21 percent growth over the year-ago quarter.



    "We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever," said Apple chief executive Steve Jobs. "iPhone is off to a great start -- we hope to sell our one- millionth iPhone by the end of its first full quarter of sales -- and our new product pipeline is very strong."



    Apple will provide live streaming of its Q3 2007 financial results conference call utilizing QuickTime, the company's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, July 25, 2007.



    AppleInsider will provide its usual coverage.
  • Reply 4 of 43
    Sales Data:

    *iPhone and Related Products and Services 270K

    Revenue 5M



    *Consists of iPhones and Apple-branded and third-party iPhone accessories.
  • Reply 5 of 43
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by Matthew Yohe View Post


    "?iPhone is off to a great start?we hope to sell our one-millionth iPhone by the end of its first full quarter of sales?and our new product pipeline is very strong.? -- Steve Jobs



    That means the people on these boards who were hoping to hear that Apple had already hit that number will be quite disappointed. A good chunk of the market probably will be too.
  • Reply 6 of 43
    anantksundaramanantksundaram Posts: 20,226member
    Quote:
    Originally Posted by Matthew Yohe View Post


    "?iPhone is off to a great start?we hope to sell our one-millionth iPhone by the end of its first full quarter of sales?and our new product pipeline is very strong.? -- Steve Jobs



    Wow!







    And, the company is doing fabulously on the Mac front: What more can you ask for?

  • Reply 7 of 43
    cameronjcameronj Posts: 2,357member
    "For the third quarter, however, Apple said it expects to earn 65 cents a share, below analysts' expectations of 82 cents a share."



    http://www.thestreet.com/_yahoo/news...&cm_ite=NA



    Anyone else use Ameritrade? My quote at 4:55 PM is $130.02 per share. Heh... wow I see it's bouncing around quite a bit!
  • Reply 8 of 43
    macsharkmacshark Posts: 229member
    Quote:
    Originally Posted by Matthew Yohe View Post


    Sales Data:

    iPhone and Related Products and Services 270K

    Revenue 5M



    $5M revenue for 270K iPhones sold? That is less than $20 revenue per iPhone. Even if Apple is going to amortize the price of the iPhone over time, I thought AT&T was going to pay an incentive to Apple for each iPhone sold. Maybe this is contingent on activation and the revenue from AT&T incentives will be recognized in this quarter for last querter's sales?
  • Reply 9 of 43
    macsharkmacshark Posts: 229member
    Quote:
    Originally Posted by Matthew Yohe View Post


    Sales Data:

    iPhone and Related Products and Services 270K

    Revenue 5M



    Quote:
    Originally Posted by cameronj View Post


    "For the third quarter, however, Apple said it expects to earn 65 cents a share, below analysts' expectations of 82 cents a share."



    http://www.thestreet.com/_yahoo/news...&cm_ite=NA



    This is also strange. Given that the revenue is going up, the only expectation is that Apple expects to see drastically lower margins in this quarter. Given that prices of most of the components Apple uses is not likely to go up, does this mean that Apple will introduce a whole set of lower margin (cheaper) products this quarter? Lower price point iMacs? All-flash iPods?
  • Reply 10 of 43
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by macshark View Post


    This is also strange. Given that the revenue is going up, the only expectation is that Apple expects to see drastically lower margins in this quarter. Given that prices of most of the components Apple uses is not likely to go up, does this mean that Apple will introduce a whole set of lower margin (cheaper) products this quarter? Lower price point iMacs? All-flash iPods?



    None of the above. They are just lowering expectations so they can more easily beat them. Apple does it every quarter, and the stock drops as a result most every time. Creates a really good buying opportunity for those who see it coming.
  • Reply 11 of 43
    addaboxaddabox Posts: 12,664member
    So if I'm reading this correctly, Apple sold 270K iPhone in the day and a half before the end of the quarter? And this number doesn't include Sunday?



    That suggests to me that they could have easily sold 370K the first weekend, and half a million by the end of the week, at least.



    So..... they hope to sell a million by the end of the first full quarter? Seems a tad conservative, even for, as noted above, notoriously expectation managing Apple.
  • Reply 12 of 43
    aaarrrggghaaarrrgggh Posts: 1,608member
    Quote:
    Originally Posted by cameronj View Post


    None of the above. They are just lowering expectations so they can more easily beat them. Apple does it every quarter, and the stock drops as a result most every time. Creates a really good buying opportunity for those who see it coming.



    Usually, their guidance is pretty close to expectations and they kill the expectations at quarter end. I don't think I have seen them be 25% lower than street expectations before in their guidance. Apple will be back in the 120's by Friday. Doh!
  • Reply 13 of 43
    Quote:
    Originally Posted by macshark View Post


    $5M revenue for 270K iPhones sold? That is less than $20 revenue per iPhone. Even if Apple is going to amortize the price of the iPhone over time, I thought AT&T was going to pay an incentive to Apple for each iPhone sold. Maybe this is contingent on activation and the revenue from AT&T incentives will be recognized in this quarter for last querter's sales?





    This includes phones and Apple/Thirdparty accessories.
  • Reply 14 of 43
    dstranathandstranathan Posts: 1,717member
    Quote:
    Originally Posted by Matthew Yohe View Post


    iPhone and Related Products and Services 270K.



    Does this number include the iPhones that AT&T sold or not?



    How many iPhones did AT&T sell in the first 2 days?
  • Reply 15 of 43
    webmailwebmail Posts: 639member
    The revenue from iphones ($5million) is going to be spread out over 2 year life of contract (smart move) that's why the revenue wasn't say $40million from 250k of iPhones.
  • Reply 16 of 43
    brussellbrussell Posts: 9,812member
    Quote:
    Originally Posted by macshark View Post


    This is also strange. Given that the revenue is going up, the only expectation is that Apple expects to see drastically lower margins in this quarter. Given that prices of most of the components Apple uses is not likely to go up, does this mean that Apple will introduce a whole set of lower margin (cheaper) products this quarter? Lower price point iMacs? All-flash iPods?



    Yeah it looks that way. I'm listening to the conference call, and he cited "future product transitions" as one of the reasons for the lowered guidance. He did also mention component prices increasing too.
  • Reply 17 of 43
    physguyphysguy Posts: 920member
    Quote:
    Originally Posted by cameronj View Post


    That means the people on these boards who were hoping to hear that Apple had already hit that number will be quite disappointed. A good chunk of the market probably will be too.



    That's why after hours trading is already up $3.54
  • Reply 18 of 43
    kickahakickaha Posts: 8,760member
    $8.33 now...
  • Reply 19 of 43
    physguyphysguy Posts: 920member
    $12.14 now.... (2:59 PM PDT)
  • Reply 20 of 43
    kickahakickaha Posts: 8,760member
    $14.04...



    Good lord.
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