Apple Reports Second Quarter Profit of $43 Million
CUPERTINO, CaliforniaApril 18, 2001Apple® today announced financial results for its fiscal 2001 second quarter ended March 31, 2001. For the quarter, the Company posted a net profit of $43 million, or $.12 per diluted share. These results compare to a net profit of $233 million, or $.64 per diluted share, achieved in the year ago quarter. Revenues for the quarter were $1.43 billion, down 26 percent from the year ago quarter, and gross margins were 26.9 percent, compared to 28.2 percent in the year ago quarter. International sales accounted for 48 percent of the quarters revenues.
The quarters results included a $3 million net favorable impact from non-recurring items including an after-tax gain of $89 million resulting from the sale of approximately 23 million shares of ARM Holdings plc. and an after tax charge of $86 million related to the write down of certain equity investments. Without these non-recurring items, the Companys net profit for the quarter would have been $40 million, or $.11 per diluted share.
Apple shipped 751 thousand Macintosh® units during the quarter.
Apple returned to profitability in this tough economic climate by launching several innovative new products, said Steve Jobs, Apples CEO. During the quarter we shipped the Titanium PowerBook G4, widely regarded as a major breakthrough in notebook computers; Mac OS X, the worlds most advanced operating system; iTunes, the easiest way to create a music library on your computer and burn custom music CDs; and iDVD and SuperDrive, our revolutionary software and drive that together enable users to create and burn their own custom DVDs. It was a great new product quarter, and theres still more to come.
We feel very good about delivering solid profitability while reaching our goal of 4 weeks of channel inventory ahead of schedule, said Fred Anderson, Apples CFO. Our balance sheet remains very strong, with over $4.1 billion in cash. We now expect to generate $3.2 to $3.4 billion in revenues in the second half of the fiscal year, and we are targeting sequential improvements in both revenues and profits in the June and September quarters.
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 Q2 2001 financial results conference call utilizing QuickTime, Apples standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2 p.m. PDT on Wednesday, April 18, 2001 at http://www.apple.com/quicktime/qtv/earningsq201/ and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at www.apple.com/quicktime.
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 programs, 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 2000 fiscal year, and the Companys Form 10-Q for the quarter ended March 31, 2001, to be filed with the SEC.
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