Apple Reports Third Quarter Results

Apple today announced financial resultsfor its fiscal 2002 third quarter, which ended on June 29th, 2002. For the quarter, the Company posted a net profit of US$32 million (&pound20.5m*), or $0.09 per diluted share. These results compare to a net profit of US$61 million (£39.0m*), or $0.17 per diluted share, in the year-ago quarter. Revenues for the quarter were US$1.43 billion (£913.9m*), down 3 percent from the year-ago quarter, and gross margins were 27.4 percent, down from 29.4 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter's revenues.

Apple shipped 808 thousand Macintosh units during the quarter, down 2percent from the year-ago quarter.

“Even in this extended worldwide downturn, Apple is continuing to beprofitable and continuing to innovate”, said Steve Jobs, Apple's CEO. “We're working hard to attract new customers with our ‘Switchers' advertising campaign and our 31 retail stores in the US, and we're continuing to invest in a strong slate of new products, some of which we'll talk more about at Macworld New York tomorrow”.

“Despite the slowdown in the market, our operational efficiency wasexcellent”, said Fred Anderson, Apple's CFO. “Our balance sheet is very strong, with $4.3 billion in cash, and we achieved a very efficient cashconversion cycle of -36 days. We expect September quarter revenues to beapproximately flat with the June quarter, and expect a slight profit for thequarter before any non-recurring items”.

Financial Statements & Data Summary:

Financial statements and a data summary are available for download as PDFdocuments from:

This press release contains forward-looking statements about future revenuesand profit. These statements involve risks and uncertainties and actualresults may differ. Potential risks and uncertainties include continuedcompetitive pressures in the marketplace; the effect competitive andeconomic factors and the Company's reaction to them may have on consumer and business buying decisions with respect to the Company's products; theability of the Company to make timely delivery of new programmes, products andsuccessful technological innovations to the marketplace; the continuedavailability of certain components and services essential to the Company'sbusiness currently obtained by the Company from sole or limited sources;possible disruption in commercial activities caused by terrorist activityand armed conflict, such as changes in logistics and security arrangements,and reduced end-user purchases relative to expectations; risks associatedwith the Company's retail initiative including significant investment cost,uncertain consumer acceptance and potential impact on existing resellerrelationships; the effect that the Company's dependency on manufacturing and logistics services provided by third-parties may have on the quality orquantity of products manufactured; and the ability of the Company tosuccessfully evolve its operating system and attract sufficient Macintoshdevelopers. More information on potential factors that could affect theCompany'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 2001 fiscal year, and the Company's Form 10-Q for the quarter ended June 29th, 2002, to be filed with the SEC.

* Figures based on currency exchange rates at the time of going to press; exchange rates are subject to fluctuation.

Press Contacts:
Apple UK and Ireland Public Relations
Email: [email protected]
Phone: +44 (0)20 8218 1440