Apple Reports Second Quarter Results

Apple today announced financial results for its fiscal 2003 second quarter ended March 29th, 2003. For the quarter, the Company posted a net profit of US$14 million (£8.85m*), or $0.04 per diluted share. Theseresults compare to a net profit of US$40 million (£25.3m*), or $0.11 per diluted share, in the year-ago quarter. Revenues for the quarter were US$1.475 billion (£933.1m*), down 1 percent from the year-ago quarter, and gross margins were 28.3 percent, up from 27.4 percent in the year-ago quarter. International sales accounted for 47 percent of the quarter’s revenues.

Apple shipped 711,000 Macintosh units during the quarter.

“Our ‘year of the notebook’ is off to a great start, led by the incredible demand for our new aluminium 12-inch and 17-inch PowerBook G4s”, said Steve Jobs, Apple’s CEO. “This quarter over 40 percent of the Macs we shipped were notebooks — our highest percentage ever and well ahead of the industry average”.

“We are very pleased to have achieved our revenue target for the secondquarter while maintaining channel inventories under 4.5 weeks”, said FredAnderson, Apple’s CFO. “Continued strong asset management enabled us to increase cash to over US$4.5 billion. Looking ahead to the third quarter of2003, we expect revenue to be relatively flat with the March quarter andexpect a slight profit for the quarter”.

Apple will provide live streaming of its Q2 2003 financial resultsconference call utilising QuickTime, Apple’s standards-based technology forlive and on-demand audio and video streaming. The live webcast will begin at2:00 pm PDT (10:00 pm BST) on Wednesday, April 16th, 2003 at https://102.p.syniva.es/quicktime/qtv/earningsq203/ and will also be available for replay. The QuickTime player is availablefree for Macintosh and Windows users at https://102.p.syniva.es/uk/quicktime

This press release contains forward-looking statements about futurerevenues, profit and products. These statements involve risks anduncertainties and actual results may differ. Potential risks anduncertainties include continued competitive pressures in the marketplace;the effect competitive and economic factors and the Company’s reaction tothem may have on consumer and business buying decisions with respect to theCompany’s products; the ability of the Company to make timely delivery ofnew programmes, products and successful technological innovations to themarketplace; the continued availability of certain components and servicesessential to the Company’s business currently obtained by the Company fromsole or limited sources; possible disruption in commercial activities causedby terrorist activity and armed conflict, such as changes in logistics andsecurity arrangements, and reduced end-user purchases relative toexpectations; possible disruption in commercial activity as a result ofSevere Acute Respiratory Syndrome (SARS); risks associated with theCompany’s retail initiative including significant investment cost, uncertain consumer acceptance and potential impact on existing reseller relationships; the effect that the Company’s dependency on manufacturing and logistics services provided by third-parties may have on the quality or quantity of products manufactured; and the ability of the Company to successfully evolve its operating system and attract sufficient Macintosh developers. 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 filedwith the SEC, including the Company’s Form 10-K for the fiscal year 2002 and the Company’s Form 10-Q for the quarter ended March 29th, 2003, 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: (020) 8218 1440