Apple Reports Third Quarter Profit of $200 Million
Revenues up 17 percent
Profits Before Investment Gains up 43 percent
CUPERTINO, CaliforniaJuly 18, 2000Apple® today announced financial results for its fiscal 2000 third quarter ending July 1, 2000. For the quarter, the Company posted a net profit of $200 million, or $.55 per diluted share. These results compare to a net profit of $203 million, or $.60 per diluted share, achieved in the year-ago quarter. Revenues for the quarter were $1.825 billion, up 17 percent from the year-ago quarter, and gross margins were 29.8 percent, up from 27.4 percent in the year-ago quarter. International sales accounted for 46 percent of the quarters revenues.
The quarters results included a $37 million after-tax gain from the sale of 4.95 million shares of ARM Holdings plc., which contributed $.10 to earnings per diluted share. Excluding investment gains, the Companys net profit would have been $163 million, an increase of 43 percent from the year-ago quarter, and earnings per diluted share would have been $.45, up 29 percent from the year-ago quarter.
Sales of 1,016,000 units during the quarter including over 350 thousand Power Mac G4 systems and nearly 450 thousand iMac systems drove unit growth of 12 percent.
Were pleased to report our eleventh consecutive profitable quarter, with net profits up 43 percent, said Steve Jobs, Apples CEO. Weve now shipped 3.7 million iMacs since introduction, and we had a strong quarter for our pro products, especially PowerBooks.
Strong earnings combined with superb asset management resulted in positive cash flows from operations of $234 million, said Fred Anderson, Apples CFO. Apple finished the quarter with $3.8 billion in cash and short-term investments.
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.Except for the historical information contained herein, the statements in this press release are forward-looking statements that involve risks and uncertainties. Potential risks and uncertainties include, without limitation, continued competitive pressures in the marketplace; the effect competitive and economic factors and the Companys reaction to them may have on consumer and business buying decisions with respect to the Companys products; the ability of the Company to make timely delivery of new products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Companys business currently obtained by the Company from sole or limited sources and the ability of the Company to successfully evolve its operating system. More information on potential factors that could affect the Companys financial results is included from time to time in the Companys public reports filed with the SEC, including the Companys Form 10-K for the 1999 fiscal year, and the Companys Form 10-Q for the quarter ended July 1, 2000, to be filed with the SEC.
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