PRESS RELEASE
December 5, 2000
Apple To Report Disappointing First Quarter Results
CUPERTINO, California—December 5, 2000—Apple® today announced that it has experienced significantly slower than expected sales during October and November, which will result in revenues and earnings for its quarter ending December 30, 2000 being substantially below expectations.
The company expects to report revenue of about $1 billion and a net loss, excluding investment gains, of between $225 and $250 million when actual results are announced on January 17, 2001.
The $600 million revenue shortfall from previous expectations is due to lower than expected channel sell-through across all geographies and unplanned sales promotions and pricing actions. The net loss is the result of the revenue shortfall and cancellation charges related to decreases in forecasted component purchases for current products.
“The swift industry-wide decline in PC sales will result in Apple's first non-profitable quarter in three years,” said Apple's CEO Steve Jobs. “We're not happy about it, and plan to return to sustained profitability next quarter. We are committed to reducing our channel inventories to normal levels by the end of this quarter, and remain very excited about the new products and programs Apple will be rolling out in 2001.”
“In light of the lower results anticipated for the December quarter, we now expect revenues for fiscal 2001 to be in the $6 to $6.5 billion range,” said Apple's CFO Fred Anderson.
Apple management will conduct a conference call today for financial analysts and the news media at 2 p.m. (PST)/5 p.m. (EST). The dial-in number for financial analysts is (913) 981-5510, and the number for news media is (913)981-5519. A recording of this call will be available for replay for seven days beginning at 5 p.m. (PST)/8 p.m. (EST). The number for the replay is (719) 457-0820 and the confirmation code is 446507.
Apple will also provide live streaming of today's 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 p.m. (PST)/5 p.m.(EST) today at https://www.apple.com/quicktime/qtv/q101_update/ 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 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 and the ability of the Company to successfully evolve its operating system. 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 1999 fiscal year, and the Company's Form 10-K for the fiscal year ending September 30, 2000, to be filed with the SEC.