CUPERTINO, California?January 15, 2003?Apple® today announced financial results for its fiscal 2003 first quarter ended December 28, 2002. For the quarter, the Company posted a net loss of $8 million, or $.02 per share. These results compare to a net profit of $38 million, or $.11 per diluted share, in the year-ago quarter. Revenues for the quarter were $1.47 billion, up 7 percent from the year-ago quarter, and gross margins were 27.6 percent, down from 30.7 percent in the year-ago quarter. International sales accounted for 43 percent of the quarter?s revenues.
The quarter?s results included a $17 million after-tax restructuring charge and a $2 million after-tax accounting transition adjustment. Excluding these non-recurring items, the Company?s net profit for the quarter would have been $11 million, or $.03 per share.
Apple shipped 743 thousand Macintosh® units during the quarter, about even with the year-ago quarter.
?We have a very strong new product pipeline for 2003, which we kicked off by introducing the two most advanced notebook computers in the industry last week at Macworld,? said Steve Jobs, Apple?s CEO. ?We?re going to keep investing through this downturn and continue to move our products and distribution channels ever further ahead of our competitors, so that when the economy rebounds we will be positioned for growth.?
?We were extremely pleased with our ability to achieve our revenue target for the first quarter while reducing channel inventories by 11 percent within the quarter,? said Fred Anderson, Apple?s CFO. ?Continued strong asset management enabled us to increase cash to over $4.4 billion. Looking ahead to the second quarter of 2003, we expect revenue to be relatively flat with the December quarter, and expect a slight profit for the quarter.?
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
Apple will provide live streaming of its Q1 2003 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. PST on Wednesday, January 15, 2003 at <a href="http://www.apple.com/quicktime/qtv/earningsq103/"; target="_blank">http://www.apple.com/quicktime/qtv/earningsq103/</a>; and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at <a href="http://www.apple.com/quicktime."; target="_blank">www.apple.com/quicktime.</a>
This press release contains forward-looking statements about future revenues, profit, products, and research and development. These statements involve risks and uncertainties and actual results may differ. Potential risks and uncertainties include continued competitive pressures in the marketplace; the effect competitive and economic factors and the Company?s reaction to them may have on consumer and business buying decisions with respect to the Company?s products; the ability of the Company to make timely delivery of new programs, products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Company?s business currently obtained by the Company from sole or limited sources; possible disruption in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; risks associated with the Company's retail initiative including significant investment cost, uncertain consumer acceptance and potential impact on existing reseller relationships; the effect that the Company?s dependency on manufacturing and logistics services provided by third-parties may have on the quality or quantity of products manufactured; and the ability of the Company to successfully evolve its operating system and attract sufficient Macintosh developers. 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 2002 and the Company?s Form 10-Q for the quarter ended December 28, 2002 to be filed with the SEC.
Ummmmmnnnoo... That wouldn't really soothe or impress the shareholders, but spook them.
1) Steve needs to up his vitamins and bring his RDF to primetime TV. It's being squandered on the faithful at these expos.
2) Zany marketing blitz. If Microsoft can cram those damned butterflies upon us then Apple can do something as equally childish. How about Kool-Aid® stands (get it!?) that also offer coupons and CDs of Quicktime for Windows and movies of what iLife can do for the Windows peons.
WHY is it that when HPaq or whoever loses money but was profitable after "non-recurring charges" or whatever, the headlines say "small profit for (whoever)"
but if Apple does the same thing, the headlines all say "Quarterly LOSS for Apple !!"
The same reason that when certain politicians or public figures do something, it's okay with everyone. Then if others do it, they get hammered and called every name in the book.
It's called bias and "having it in for the other side".
For these sketchy economic times, they're off pretty well.
What suprised me was that according to BRussel 47% of iPods sold were windows. I guess some Windows users are being swayed by the iPod. This is probably the most hopeful fact of the entire press release.
Now if there were some facts on the Swither ad campaign...
<strong>When asked about poor PowerMac sales, Fred said:
"Management is very focused on that" and "we have a number" of plans to bring PowerMac sales back up.</strong><hr></blockquote>
Heh, they better be having plans to bring PowerMac sales back up, the PowerMac numbers need to get a bit of a jump. The iMac/iBook seem to be okay, and the Powerbook should be fine this coming quarter with the recent releases.
On a side note, you said 58,000 of iMac/eMacs were the CRT? That's 20%, I had no clue it'd be that high. I figured it'd be like 5% or something ridiculouly small.
I agree that Apple needs to give out information about the switcher campaign. MANY analysts and magazines are weary about Apple, and will continue to be until they have proff that the ads are working.
The prices are also a big problem. We can see that consumers want cheap computers by the number of CRT computers sold. At this point, they are healthy enough that they should take a cut and maybe sell computers are cost as an effort to increase market share. Once people buy a mac once, they will buy another, and it would end up being good for Apple.
It provides no real background info. and I can't recall them reporting like this much on, say, gateway etc. I'm reaching the conclusion after many articles from the BBC on Apple that the reporting isn't upto it's normal unbiased and fair coverage. I may well be wrong. It does cover the iLife and Quotes Jobs saying that they'll inovate their way out of the recession.
Comments
<img src="graemlins/hmmm.gif" border="0" alt="[Hmmm]" />
For every right, cool step they seem to take, they take 2-4 backwards.
Why is that?
MSKR
[ 01-15-2003: Message edited by: Masker ]</p>
As of a few minutes ago, maccentral simply had a headline, with no full story linkage.
CUPERTINO, California?January 15, 2003?Apple® today announced financial results for its fiscal 2003 first quarter ended December 28, 2002. For the quarter, the Company posted a net loss of $8 million, or $.02 per share. These results compare to a net profit of $38 million, or $.11 per diluted share, in the year-ago quarter. Revenues for the quarter were $1.47 billion, up 7 percent from the year-ago quarter, and gross margins were 27.6 percent, down from 30.7 percent in the year-ago quarter. International sales accounted for 43 percent of the quarter?s revenues.
The quarter?s results included a $17 million after-tax restructuring charge and a $2 million after-tax accounting transition adjustment. Excluding these non-recurring items, the Company?s net profit for the quarter would have been $11 million, or $.03 per share.
Apple shipped 743 thousand Macintosh® units during the quarter, about even with the year-ago quarter.
?We have a very strong new product pipeline for 2003, which we kicked off by introducing the two most advanced notebook computers in the industry last week at Macworld,? said Steve Jobs, Apple?s CEO. ?We?re going to keep investing through this downturn and continue to move our products and distribution channels ever further ahead of our competitors, so that when the economy rebounds we will be positioned for growth.?
?We were extremely pleased with our ability to achieve our revenue target for the first quarter while reducing channel inventories by 11 percent within the quarter,? said Fred Anderson, Apple?s CFO. ?Continued strong asset management enabled us to increase cash to over $4.4 billion. Looking ahead to the second quarter of 2003, we expect revenue to be relatively flat with the December quarter, and expect a slight profit for the quarter.?
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
Apple will provide live streaming of its Q1 2003 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. PST on Wednesday, January 15, 2003 at <a href="http://www.apple.com/quicktime/qtv/earningsq103/"; target="_blank">http://www.apple.com/quicktime/qtv/earningsq103/</a>; and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at <a href="http://www.apple.com/quicktime."; target="_blank">www.apple.com/quicktime.</a>
This press release contains forward-looking statements about future revenues, profit, products, and research and development. These statements involve risks and uncertainties and actual results may differ. Potential risks and uncertainties include continued competitive pressures in the marketplace; the effect competitive and economic factors and the Company?s reaction to them may have on consumer and business buying decisions with respect to the Company?s products; the ability of the Company to make timely delivery of new programs, products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Company?s business currently obtained by the Company from sole or limited sources; possible disruption in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; risks associated with the Company's retail initiative including significant investment cost, uncertain consumer acceptance and potential impact on existing reseller relationships; the effect that the Company?s dependency on manufacturing and logistics services provided by third-parties may have on the quality or quantity of products manufactured; and the ability of the Company to successfully evolve its operating system and attract sufficient Macintosh developers. 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 2002 and the Company?s Form 10-Q for the quarter ended December 28, 2002 to be filed with the SEC.
Be more aggressive?
Yes.
Revisions sooner, better, cheaper?
Yes!
Fire people?
Ummmmmnnnoo... That wouldn't really soothe or impress the shareholders, but spook them.
1) Steve needs to up his vitamins and bring his RDF to primetime TV. It's being squandered on the faithful at these expos.
2) Zany marketing blitz. If Microsoft can cram those damned butterflies upon us then Apple can do something as equally childish. How about Kool-Aid® stands (get it!?) that also offer coupons and CDs of Quicktime for Windows and movies of what iLife can do for the Windows peons.
Screed
[ 01-15-2003: Message edited by: sCreeD ]</p>
150+ thousand LCD iMacs needs to stay constant
Of 298,000 iMacs sold,
58,000 CRT
106,000 eMacs
134,000 FP iMacs
Of 216,000 iPods sold, over half were for Windows.
Gross margins up to 27%.
but if Apple does the same thing, the headlines all say "Quarterly LOSS for Apple !!"
????
"Management is very focused on that" and "we have a number" of plans to bring PowerMac sales back up.
It's called bias and "having it in for the other side".
Very simple, actually...
<strong>X Raid early this year</strong><hr></blockquote>
WOW!!!
Oh, that's what it has been saying on Apple's web site for a while now
What suprised me was that according to BRussel 47% of iPods sold were windows. I guess some Windows users are being swayed by the iPod. This is probably the most hopeful fact of the entire press release.
Now if there were some facts on the Swither ad campaign...
<strong>When asked about poor PowerMac sales, Fred said:
"Management is very focused on that" and "we have a number" of plans to bring PowerMac sales back up.</strong><hr></blockquote>
Heh, they better be having plans to bring PowerMac sales back up, the PowerMac numbers need to get a bit of a jump. The iMac/iBook seem to be okay, and the Powerbook should be fine this coming quarter with the recent releases.
On a side note, you said 58,000 of iMac/eMacs were the CRT? That's 20%, I had no clue it'd be that high. I figured it'd be like 5% or something ridiculouly small.
The prices are also a big problem. We can see that consumers want cheap computers by the number of CRT computers sold. At this point, they are healthy enough that they should take a cut and maybe sell computers are cost as an effort to increase market share. Once people buy a mac once, they will buy another, and it would end up being good for Apple.
It provides no real background info. and I can't recall them reporting like this much on, say, gateway etc. I'm reaching the conclusion after many articles from the BBC on Apple that the reporting isn't upto it's normal unbiased and fair coverage. I may well be wrong. It does cover the iLife and Quotes Jobs saying that they'll inovate their way out of the recession.
Have a read and see what you think
But their gross profit margin of 27% really surprises me. I think it is too high. this may be the cause of their troubles.