Apple reports $546M profit on revenues of $4.84B
Apple Computer on Wednesday announced preliminary financial results for its fiscal 2006 fourth quarter ended September 30, 2006, which included net quarterly profits of $546 million, or $.62 per diluted share, on revenues of $4.84 billion.
"These preliminary results may be subject to significant adjustment as a result of a likely restatement of historical results," Apple said in its release.
The Cupertino, Calif.-based company shipped 1,610,000 Macintosh computers and 8,729,000 iPods during the quarter, representing 30 percent growth in Macs and 35 percent growth in iPods over the year-ago quarter.
The results compare to revenue of $3.68 billion and net profit of $430 million, or $.50 per diluted share, in the year-ago quarter.
Apple said international sales accounted for 40 percent of the quarter's revenue. Meanwhile, gross margin was 29.2 percent, up from 28.1 percent in the year-ago quarter.
"This strong quarter caps an extraordinary year for Apple. Selling more than 39 million iPods and 5.3 million Macs while performing an incredibly complex architecture transition is something we are all very proud of," said Apple chief executive Steve Jobs. "Looking forward, 2007 is likely to be one of the most exciting new product years in Apple's history."
"We are pleased to have finished the year with over $10 billion in cash and to have increased annual revenue by $11 billion in the last two years," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the first fiscal quarter of 2007, we expect revenue of $6.0 to $6.2 billion and earnings per diluted share of $.70 to $.73."
Results subject to significant adjustment
As previously announced on October 4, 2006, an independent committee investigating Apple's stock option practices has reported its findings, which are under review by the company and its independent auditors.
The investigation determined, among other things, that stock option grants made on 15 dates between 1997 and 2002 appear to have grant dates that precede the approval of those grants for accounting purposes. As a result, management continues to believe, and the audit committee agrees, that Apple will likely need to restate its historical financial statements to record non-cash charges for compensation expense and related cash and non-cash tax adjustments relating to past stock option grants.
"The Company and its independent auditors are reviewing accounting guidance regarding stock option grants recently published by the SEC, and have not yet determined the amount of such charges, the resulting tax and accounting impact, or which periods may require restatement," Apple said.
"These preliminary results may be subject to significant adjustment as a result of a likely restatement of historical results," Apple said in its release.
The Cupertino, Calif.-based company shipped 1,610,000 Macintosh computers and 8,729,000 iPods during the quarter, representing 30 percent growth in Macs and 35 percent growth in iPods over the year-ago quarter.
The results compare to revenue of $3.68 billion and net profit of $430 million, or $.50 per diluted share, in the year-ago quarter.
Apple said international sales accounted for 40 percent of the quarter's revenue. Meanwhile, gross margin was 29.2 percent, up from 28.1 percent in the year-ago quarter.
"This strong quarter caps an extraordinary year for Apple. Selling more than 39 million iPods and 5.3 million Macs while performing an incredibly complex architecture transition is something we are all very proud of," said Apple chief executive Steve Jobs. "Looking forward, 2007 is likely to be one of the most exciting new product years in Apple's history."
"We are pleased to have finished the year with over $10 billion in cash and to have increased annual revenue by $11 billion in the last two years," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the first fiscal quarter of 2007, we expect revenue of $6.0 to $6.2 billion and earnings per diluted share of $.70 to $.73."
Results subject to significant adjustment
As previously announced on October 4, 2006, an independent committee investigating Apple's stock option practices has reported its findings, which are under review by the company and its independent auditors.
The investigation determined, among other things, that stock option grants made on 15 dates between 1997 and 2002 appear to have grant dates that precede the approval of those grants for accounting purposes. As a result, management continues to believe, and the audit committee agrees, that Apple will likely need to restate its historical financial statements to record non-cash charges for compensation expense and related cash and non-cash tax adjustments relating to past stock option grants.
"The Company and its independent auditors are reviewing accounting guidance regarding stock option grants recently published by the SEC, and have not yet determined the amount of such charges, the resulting tax and accounting impact, or which periods may require restatement," Apple said.
Comments
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.
aapl could be around 100 per share at MacWorld.
In the meantime, enjoy "Shrimp on a treadmill"
http://www.livescience.com/php/video...shrimpActivity
....QT screen went black... mmm... (1:56 PM PST)
I think it said the conference call isn't until 8pm EST.
That would be nice.
It just seems like the stock has been stuck here for a while, waiting for a bunch of quarters to prove these new products are solid. Like the new Macbooks. I think the proof is in that the Intel switch was a success.
This is a historic time for aapl - their biggest chance to capture market share in a long long time. And I think they are taking advantage of it with things like Boot Camp.
The phone thing worries me. People are too hyped up about it - and I don't know that aapl can deliver something to please everyone. I'm not that interested in an appl phone, unless it's like the equivalent of a smartphone only OSX. With GOOD web access.
You never know though, aapl comes up with solutions nobody saw coming.
I think a full screen ipod will be big. Not sure a tablet is in the works. if MS can't move them with all the business needs for them aapl might not be interested.
I really wonder what the big new products might be??
you really did nail it. Congrats
Thanks. I really read in between the lines and that's how I reached my conclusion. I only over estimated by 30,000 units.
Note that Wall Street consensus was 1.47 million. They were way off. I think I had the closet published prediction.
Thanks. I really read in between the lines and that's how I reached my conclusion. I only over estimated by 30,000 units.
Note that Wall Street consensus was 1.47 million. They were way off. I think I had the closet published prediction.
so seeing as you are good at predicting, when will the Core 2 Duo Macbook Pros be out?
so seeing as you are good at predicting, when will the Core 2 Duo Macbook Pros be out?
Tuesday.
Just don't ask me which Tuesday.
Well done Apple! :-D
Thanks. I really read in between the lines and that's how I reached my conclusion. I only over estimated by 30,000 units.
Note that Wall Street consensus was 1.47 million. They were way off. I think I had the closet published prediction.
Can't point to an exact date. In fact, I thought MacBook Pro's who have been updated by now. But you can bet that Apple will have them out prior to the Firday after Thanksgiving, you know the day that kicks off the holiday shopping season.
That means on or before November 24, 2006.
SJ