Apple reports $295 million in profit on revenue of $3.49 billion

Posted:
in General Discussion edited January 2014
Apple today announced financial results for its fiscal 2005 first quarter ended December 25, 2004.



For the quarter, the Company posted a net profit of $295 million, or $.70 per diluted share. These results compare to a net profit of $63 million, or $.17 per diluted share, in the year-ago quarter. Revenue for the quarter was $3.49 billion, up 74 percent from the year-ago quarter. Gross margin was 28.5 percent, up from 26.7 percent in the year-ago quarter. International sales accounted for 41 percent of the quarter's revenue.



Apple shipped 1,046,000 Macintosh units and 4,580,000 iPods during the quarter, representing a 26 percent increase in CPU units and a 525 percent increase in iPods over the year-ago quarter.



"We are thrilled to report the highest quarterly revenue and net income in Apple's history," said Steve Jobs, Apple's CEO. "We've sold over 10 million iPods to date and are kicking off the new year with a slate of innovative new products including iPod shuffle, Mac mini and iLife '05."



"We're pleased to report 74 percent revenue growth, 26 percent Mac unit growth and 525 percent iPod unit growth," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second quarter of fiscal 2005, we expect revenue of about $2.9 billion and earnings per diluted share of about $.40."



Apple will provide live streaming of its Q1 2005 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 12, 2005. AppleInsider will provide full coverage.

Comments

  • Reply 1 of 12
    Wow!!!!

    Was that Steve Jobs roof blowing off his house?





    Quarterly Revenue & Net Income Highest in Apple's History



    CUPERTINO, Calif., Jan. 12 /PRNewswire-FirstCall/ -- Apple(R) today

    announced financial results for its fiscal 2005 first quarter ended December

    25, 2004. For the quarter, the Company posted a net profit of $295 million, or

    $.70 per diluted share. These results compare to a net profit of $63 million,

    or $.17 per diluted share, in the year-ago quarter. Revenue for the quarter

    was $3.49 billion, up 74 percent from the year-ago quarter. Gross margin was

    28.5 percent, up from 26.7 percent in the year-ago quarter. International

    sales accounted for 41 percent of the quarter's revenue.

    Apple shipped 1,046,000 Macintosh(R) units and 4,580,000 iPods during the

    quarter, representing a 26 percent increase in CPU units and a 525 percent

    increase in iPods over the year-ago quarter.

    "We are thrilled to report the highest quarterly revenue and net income in

    Apple's history," said Steve Jobs, Apple's CEO. "We've sold over 10 million

    iPods to date and are kicking off the new year with a slate of innovative new

    products including iPod shuffle, Mac mini and iLife '05."

    "We're pleased to report 74 percent revenue growth, 26 percent Mac unit

    growth and 525 percent iPod unit growth," said Peter Oppenheimer, Apple's CFO.

    "Looking ahead to the second quarter of fiscal 2005, we expect revenue of

    about $2.9 billion and earnings per diluted share of about $.40."

    Apple will provide live streaming of its Q1 2005 financial results

    conference call utilizing QuickTime(TM), 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 12, 2005 at

    http://www.apple.com/quicktime/qtv/earningsq105/ and will also be available

    for replay. The QuickTime player is available free for Macintosh and Windows

    users at http://www.apple.com/quicktime.

    This press release contains forward-looking statements about the Company's

    estimated revenue and earnings for the second quarter of fiscal 2005. 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, including the timely resolution of manufacturing

    issues associated with the G5 microprocessors used in many of the Company's

    Macintosh systems; 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; possible disruption in commercial activity as a result of

    natural disasters or major health concerns including epidemics; 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, quantity or cost of products manufactured or services rendered; the

    Company's reliance on the availability of third-party music content, 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 ended September 25, 2004 and the Company's Form 10-Q

    for the quarter ended December 25, 2004 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 desktop and notebook computers, OS X operating system, and iLife and

    professional applications. Apple is also spearheading the digital music

    revolution with its iPod portable music players and iTunes online music store.



    NOTE: Apple, the Apple logo, Macintosh, Mac, Mac OS, iPod and QuickTime

    are either registered trademarks or trademarks of Apple. Other company and

    product names may be trademarks of their respective owners.





    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS



    (In millions, except share amounts)



    ASSETS:

    Dec. 25, Sept. 25,

    2004 2004

    Current assets:

    Cash and cash equivalents $2,475 $2,969

    Short-term investments 3,973 2,495

    Accounts receivable, less allowances of $51

    and $47, respectively 865 774

    Inventories 156 101

    Deferred tax assets 281 231

    Other current assets 572 485

    Total current assets 8,322 7,055



    Property, plant, and equipment, net 735 707

    Goodwill 80 80

    Acquired intangible assets 16 17

    Other assets 209 191

    Total assets $9,362 $8,050



    LIABILITIES AND SHAREHOLDERS' EQUITY:

    Current liabilities:

    Accounts payable $1,737 $1,451

    Accrued expenses 1,487 1,200

    Total current liabilities 3,224 2,651

    Deferred tax liabilities and other non-current

    liabilities 348 323

    Total liabilities 3,572 2,974



    Commitments and contingencies



    Shareholders' equity:

    Common stock, no par value; 900,000,000 shares

    authorized; 404,549,022 and 391,443,617 shares

    issued and outstanding, respectively 2,911 2,514

    Deferred stock compensation (83) (93)

    Retained earnings 2,965 2,670

    Accumulated other comprehensive income (loss) (3) (15)

    Total shareholders' equity 5,790 5,076

    Total liabilities and shareholders' equity $9,362 $8,050





    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



    (In millions, except share and per share amounts)



    THREE MONTHS ENDED



    Dec. 25, Dec. 27,

    2004 2003



    Net sales $3,490 $2,006

    Cost of sales 2,494 1,470

    Gross margin 996 536



    Operating expenses:

    Research and development 123 119

    Selling, general, and administrative 470 343

    Total operating expenses 593 462



    Operating income 403 74



    Other income and expense:

    Gains on non-current investments -- 4

    Interest and other income, net 26 9

    Total other income and expense 26 13



    Income before provision for income taxes 429 87

    Provision for income taxes 134 24



    Net income $295 $63



    Earnings per common share:

    Basic $0.75 $0.17

    Diluted $0.70 $0.17



    Shares used in computing earnings per share

    (in thousands):

    Basic 394,516 362,450

    Diluted 419,087 372,308





    Apple Computer, Inc.

    Q105 Unaudited Summary Data



    Q404 Actual Q104 Actual Q105 Actual



    CPU Rev CPU Rev CPU Rev

    Operating Segments Units k $m Units k $m Units k $m

    Americas 471 $1,196 378 $924 476 $1,637

    Europe 155 423 240 519 320 847

    Japan 56 175 77 157 64 185

    Retail 98 376 73 273 119 561

    Other Segments (1) 56 180 61 133 67 260

    Total Operating Segments 836 $2,350 829 $2,006 1,046 $3,490



    Units Rev Units Rev Units Rev

    k $m k $m k $m

    Product Summary

    iMac (2) 229 $216 227 $251 456 $620

    iBook 238 256 201 221 271 297

    Power Mac (3) 156 340 206 398 167 381

    PowerBook 213 419 195 399 152 307

    Subtotal CPUs 836 1,231 829 1,269 1,046 1,605

    iPod 2,016 537 733 256 4,580 1,211

    Other Music Products (4) NM 98 NM 47 NM 177

    Peripherals & Other HW NM 271 NM 222 NM 284

    Software & Other NM 213 NM 212 NM 213

    Total Apple $2,350 $2,006 $3,490



    Sequential Change Year/Year Change

    Operating Segments Units Revenue Units Revenue

    Americas 1% 37% 26% 77%

    Europe 106% 100% 33% 63%

    Japan 14% 6% -17% 18%

    Retail 21% 49% 63% 105%

    Other Segments (1) 20% 44% 10% 95%

    Total Operating Segments 25% 49% 26% 74%



    Sequential Change Year/Year Change

    Units Revenue Units Revenue

    Product Summary

    iMac (2) 99% 187% 101% 147%

    iBook 14% 16% 35% 34%

    Power Mac (3) 7% 12% -19% -4%

    PowerBook -29% -27% -22% -23%

    Subtotal CPUs 25% 30% 26% 26%

    iPod 127% 126% 525% 373%

    Other Music Products (4) NM 81% NM 277%

    Peripherals & Other HW NM 5% NM 28%

    Software & Other NM 0% NM 0%

    Total Apple 49% 74%



    (1) Other Segments include Asia Pacific and FileMaker.

    (2) Includes eMac product line.

    (3) Includes Xserve product line.

    (4) Other Music Products consists of iTunes Music Store sales and iPod

    related services and accessories.



    NM: Not Meaningful









    SOURCE Apple Computer, Inc.

    Web Site: http://www.apple.com
  • Reply 2 of 12
    I'd like to have $6.45 Billion in the bank/investments, too, please.
  • Reply 3 of 12
    Great! I love when stuff like this happens- 'cause we all know that apple is doomed!



    Apple haters can eat SH*T!
  • Reply 4 of 12
    From http://biz.yahoo.com/ap/050112/earns_apple_7.html :



    Quote:



    Apple Profits Quadruple As IPod Sales Soar



    Apple Profits More Than Quadruple, Beating Estimates, As IPod, Laptop Sales Soar Over Holidays



    SAN JOSE, Calif. (AP) -- Apple Computer Inc.'s first-quarter earnings more than quadrupled, dramatically exceeding Wall Street expectations, based on strong holiday sales of laptop computers and its wildly popular iPod music players.



    For the three months ended Dec. 25, Apple said it earned $295 million, or 70 cents per share. In the same period last year, the company earned $63 million, or 17 cents per share.



    Revenue for the quarter was $3.49 billion, up nearly 75 percent from $2 billion in the year-ago quarter.



    Analysts surveyed by Thomson First Call had projected earnings of 49 cents a share on revenue of $3.18 billion.

    (...)



    lovin' it



    durandal
  • Reply 5 of 12
    My favourite line thus far - G5 in a Powerbook is "the mother of all challenges"



    Looks like it will be a while yet. That's probably why no one is buying them right now.
  • Reply 6 of 12
    I didn't know Apple was still in business. That was a comment from a person I know 6 months ago believe it or not. I took him to my local Apple Store and he was amazed. An iPod and iMac G5 later, he is a very happy camper.



    If they gave "comeback" awards in the computer industry, Apple would be the runaway winner. A terrific story indeed.
  • Reply 7 of 12
    mcqmcq Posts: 1,543member
    Extracting some tidbits:
    • 100% sequential change on European sales from 423 million to 847 million.

    • 99% sequential change on iMac units from 229k to 456k

    • PB units down 29% sequentially

    • Operating margin of 11.5% (403 million operating income on 3.49 billion in revenues)

    For those who don't want to read the several hundred lines of text in MRG4U's post, here's the links to the formatted financials:



    Press release:

    http://www.apple.com/pr/library/2005/jan/12results.html

    Financial statements:

    http://images.apple.com/pr/pdf/q105fin_statements.pdf

    Data Summary

    http://images.apple.com/pr/pdf/q105data_sum.pdf
  • Reply 8 of 12
    Com'on don't exaggerate. There are only 999 lines in my above post.



    Somethng Peter Openheimer said in the conference call is particuarlly good news I think. He said the margins on the Mac mini are "reasonablly the same as the eMac." I believe that means around 25%. There was some concern by analysts that it would be less.
  • Reply 9 of 12
    amorphamorph Posts: 7,112member
    Lovely!



    And it's hilarious that some naysayer at Fool.com refutes his Mac-loving colleague's assertion that Apple's margins are higher than Dell's today. The Fool insists that operating margin is what matters, and Dell's 3.3% beats Apple's 2.2%.



    I wonder how hard his jaw will hit the floor now that Apple has posted over 11%?



    Go Apple!
  • Reply 10 of 12
    nagrommenagromme Posts: 2,834member
    Mac sales up--and up more than overall PC sales, which means... more market share even BEFORE the Mini!



    And strong laptop sales? So much for the laptop line being dead with a G5...



    But I thought Steve said the iMac G5 was the best Mac holiday seller.
  • Reply 11 of 12
    mcqmcq Posts: 1,543member
    Quote:

    Originally posted by Amorph

    Lovely!



    And it's hilarious that some naysayer at Fool.com refutes his Mac-loving colleague's assertion that Apple's margins are higher than Dell's today. The Fool insists that operating margin is what matters, and Dell's 3.3% beats Apple's 2.2%.



    I wonder how hard his jaw will hit the floor now that Apple has posted over 11%?



    Go Apple!




    I was taking operating margins. Profit margins are closer to around 8.5% for the quarter (295 million profit / 3.49 billion revenue)



    For reference, it appears that Dell's profit margins have been steady at around 6.5% - 7%, based on this data:

    http://moneycentral.msn.com/investor...L&stmtView=Qtr



    Edit: You were talking aboout operating margins. Whatever. Data is still useful.
  • Reply 12 of 12
    Quote:

    Originally posted by nagromme

    Mac sales up--and up more than overall PC sales, which means... more market share even BEFORE the Mini!



    And strong laptop sales? So much for the laptop line being dead with a G5...



    But I thought Steve said the iMac G5 was the best Mac holiday seller.




    IMO, the marketshare has caught up to where it was 5 years ago. Since the original burst of the iMac, unit sales have stagnated below 1 million, sometimes even 800k (gasp) per quarter, and now they're finally back at that mark they should have been at all along. Sure, 26% increase looks good on paper and by no means is a bad thing, there is no reason Apple should have sold as few machines per quarter as they did the past few years. It will be interesting to see if the high unit sales sustain like this, and even grow. They really have no excuse for falling under 1 million units again. I hope the Mac mini works wonders on these numbers.



    PowerMac and PowerBook sales are obviously terrible right now. The sagging pro line is overpriced and badly in need of faster processors. The annual update schedule of the PowerMac needs to be shortened. The PowerBook needs a G5.



    Oh yeah. Apple, there is this one thing you could try doing to grow your platform a little. It's called advertising.
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