Apple Reports Third Quarter Results

Apple today announced financialresults for its fiscal 2003 third quarter ended June 28th, 2003. For thequarter, the Company posted a net profit of US$19 million (£11.90m*), or US$0.05 per diluted share. These results compare to a net profit of US$32 million (£20.1m*), or US$0.09 per diluted share, in the year-ago quarter. Revenues for the quarter were US$1.545 billion (£968.9m*), up 8 percent from the year-ago quarter and up 5 percent sequentially, and gross margins were 27.7 percent, up from 27.4 percent in the year-ago quarter. International sales accounted for 39 percent of the quarter’s revenues.

Apple shipped 771,000 Macintosh units during the quarter.

“This was a great new product quarter for Apple, starting with the iTunesMusic Store and the new third-generation iPods, and ending with theannouncement of the Power Mac G5 and the developer preview of Panther, thefourth major release of Mac OS X”, said Steve Jobs, Apple’s CEO. “Customer response to our new products has been very strong, and this quarter we are focused on delivering Power Mac G5s beginning in August and finishing Panther for release later this year”.

“We are very proud to have exceeded our revenue target for the third quarter despite the difficult economic backdrop”, said Fred Anderson, Apple’s CFO. “We continue to be pleased with our working capital management and our ability to increase cash which totals over $4.5 billion. Looking ahead to the fourth quarter of 2003, we expect an increase in revenues and a slight increase in earnings relative to the June quarter”.

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 filed with 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
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Phone: (020) 8218 1440