 |  |  |  |  |  |  |  |  |
|
Apple Reports Record Second Quarter ResultsRevenue Up 43 Percent Year-Over-Year
CUPERTINO, Calif., April 23 /PRNewswire-FirstCall/ -- Apple(R) today announced financial results for its fiscal 2008 second quarter ended March 29, 2008. The Company posted revenue of $7.51 billion and net quarterly profit of $1.05 billion, or $1.16 per diluted share. These results compare to revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share, in the year-ago quarter. Gross margin was 32.9 percent, down from 35.1 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter's revenue. Apple shipped 2,289,000 Macintosh(R) computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The Company sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter. Quarterly iPhone(TM) sales were 1,703,000. "We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters." "We're thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00." Apple will provide live streaming of its Q2 2008 financial results conference call utilizing QuickTime(R), Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, April 23, 2008 at http://www.apple.com/quicktime/qtv/earningsq208/ and will also be available for replay. This press release contains forward-looking statements about the Company's estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include potential litigation from the matters investigated by the special committee of the board of directors and the restatement of the Company's consolidated financial statements; unfavorable results of other legal proceedings; the effect of competitive and economic factors, and the Company's reaction to those factors, on consumer and business buying decisions with respect to the Company's products; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; continued competitive pressures in the marketplace; the Company's reliance on sole service providers for iPhone in certain countries; the continued availability on acceptable terms of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the effect that product quality problems could have on the Company's sales and operating profits; the inventory risk associated with the Company's need to order or commit to order product components in advance of customer orders; the effect that the Company's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company's dependency on the performance of distributors and other resellers of the Company's products; the Company's reliance on the availability of third-party digital content; and the potential impact of a finding that the Company has infringed on the intellectual property rights of others. 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 ended September 29, 2007, its Form 10-Q for the quarter ended December 29, 2007, and its Form 10-Q for the quarter ended March 29, 2008 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone. (C) 2008 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iPhone and QuickTime are trademarks of Apple. Other company and product names may be trademarks of their respective owners.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share amounts)
Three Months Ended Six Months Ended
March 29, March 31, March 29, March 31,
2008 2007 2008 2007
Net sales $7,512 $5,264 $17,120 $12,379
Cost of sales (1) 5,038 3,415 11,314 8,310
Gross margin 2,474 1,849 5,806 4,069
Operating expenses:
Research and development (1) 273 183 519 367
Selling, general,
and administrative (1) 886 680 1,846 1,394
Total operating expenses 1,159 863 2,365 1,761
Operating income 1,315 986 3,441 2,308
Other income and expense 162 148 362 274
Income before provision for
income taxes 1,477 1,134 3,803 2,582
Provision for income taxes 432 364 1,177 808
Net income $1,045 $770 $2,626 $1,774
Earnings per common share:
Basic $1.19 $0.89 $2.99 $2.06
Diluted $1.16 $0.87 $2.92 $2.00
Shares used in computing earnings
per share (in thousands):
Basic 879,546 863,003 877,704 860,347
Diluted 899,329 886,653 899,783 884,896
(1) Includes stock-based
compensation expense
as follows:
Cost of sales $20 $9 $38 $15
Research and development $47 $20 $86 $36
Selling, general, and
administrative $65 $34 $118 $58
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share amounts)
March 29, September 29,
2008 2007
ASSETS:
Current assets:
Cash and cash equivalents $9,070 $9,352
Short-term investments 10,378 6,034
Accounts receivable, less allowances
of $44 and $47, respectively 1,593 1,637
Inventories 364 346
Deferred tax assets 1,060 782
Other current assets 4,271 3,805
Total current assets 26,736 21,956
Property, plant and equipment, net 1,962 1,832
Goodwill 38 38
Acquired intangible assets, net 300 299
Other assets 1,435 1,222
Total assets $30,471 $25,347
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $4,154 $4,970
Accrued expenses 5,480 4,310
Total current liabilities 9,634 9,280
Non-current liabilities 2,784 1,535
Total liabilities 12,418 10,815
Commitments and contingencies
Shareholders' equity:
Common stock, no par value; 1,800,000,000
shares authorized; 881,431,003 and
872,328,972 shares issued and outstanding,
respectively 6,342 5,368
Retained earnings 11,642 9,101
Accumulated other comprehensive income 69 63
Total shareholders' equity 18,053 14,532
Total liabilities and shareholders' equity $30,471 $25,347
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Six Months Ended
March 29, March 31,
2008 2007
Cash and cash equivalents, beginning
of the period $9,352 $6,392
Operating Activities:
Net income 2,626 1,774
Adjustments to reconcile net income to
cash generated by operating activities:
Depreciation, amortization, and accretion 222 143
Stock-based compensation expense 242 109
Provision for deferred income taxes 6 122
Loss on disposition of property, plant,
and equipment 10 6
Changes in operating assets and liabilities:
Accounts receivable, net 44 324
Inventories (18) 62
Other current assets (444) 589
Other assets (150) 261
Accounts payable (740) (987)
Deferred revenue 1,585 235
Other liabilities 597 (91)
Cash generated by operating activities 3,980 2,547
Investing Activities:
Purchases of short-term investments (12,740) (6,223)
Proceeds from maturities of
short-term investments 6,683 2,961
Proceeds from sales of short-term investments 1,676 1,505
Purchases of long-term investments (17) (5)
Payment for acquisition of property,
plant, and equipment (384) (247)
Payment for acquisition of intangible assets (63) (216)
Other 21 13
Cash used in investing activities (4,824) (2,212)
Financing Activities:
Proceeds from issuance of common stock 233 176
Excess tax benefits from stock-based compensation 445 192
Cash used to net share settle equity awards (116) -
Cash generated by financing activities 562 368
(Decrease) increase in cash and cash equivalents (282) 703
Cash and cash equivalents, end of the period $9,070 $7,095
Supplemental cash flow disclosure:
Cash paid for income taxes, net $753 $501
UNAUDITED CONSOLIDATED SCHEDULE OF DEFERRED REVENUE
(In millions)
March 29, December 29, September 29,
2008 2007 2007
Deferred revenue-current:
iPhone and Apple TV $1,170 $816 $346
AppleCare 504 467 430
Other 742 776 * 615 *
Total deferred revenue-current 2,416 2,059 1,391
Deferred revenue-non-current:
iPhone and Apple TV 763 624 290
AppleCare 559 529 495
Other 87 76 * 64 *
Total deferred
revenue-non-current 1,409 1,229 849
Total deferred revenue $3,825 $3,288 $2,240
* Certain prior period amounts have been reclassified to conform to the
current period presentation.
Apple Inc.
Q2 2008 Unaudited Summary Data
Q1 2008 Q2 2007 Q2 2008
CPU Rev CPU Rev CPU Rev
Operating Segments Units $M Units $M Units $M
Americas 841 $4,298 605 $2,467 884 $3,268
Europe 705 2,471 433 1,249 627 1,780
Japan 91 400 79 284 118 424
Retail 504 1,701 275 834 458 1,451
Other Segments (1) 178 738 125 430 202 589
Total Operating Segments 2,319 $9,608 1,517 $5,264 2,289 $7,512
Units Rev Units Rev Units Rev
Product Summary K $M K $M K $M
Desktops (2) 977 $1,515 626 $914 856 $1,352
Portables (3) 1,342 2,037 891 1,354 1,433 2,142
Subtotal CPUs 2,319 3,552 1,517 2,268 2,289 3,494
iPod 22,121 3,997 10,549 1,689 10,644 1,818
Other Music Related
Products and Services (4) 808 653 881
iPhone and Related
Products & Services (5) 2,315 241 - - 1,703 378
Peripherals and Other
Hardware 382 309 412
Software, Service and
Other Sales 628 345 529
Total Apple $9,608 $5,264 $7,512
Sequential Change Year/Year Change
CPU CPU
Operating Segments Units Revenue Units Revenue
Americas 5% - 24% 46% 32%
Europe - 11% - 28% 45% 43%
Japan 30% 6% 49% 49%
Retail - 9% - 15% 67% 74%
Other Segments (1) 13% - 20% 62% 37%
Total Operating Segments - 1% - 22% 51% 43%
Sequential Change Year/Year Change
Product Summary Units Revenue Units Revenue
Desktops (2) - 12% - 11% 37% 48%
Portables (3) 7% 5% 61% 58%
Subtotal CPUs - 1% - 2% 51% 54%
iPod - 52% - 55% 1% 8%
Other Music Related Products and
Services (4) 9% 35%
iPhone and Related Products &
Services (5) - 26% 57% N/M N/M
Peripherals and Other Hardware 8% 33%
Software, Service and Other Sales - 16% 53%
Total Apple - 22% 43%
(1) Other Segments include Asia Pacific and FileMaker.
(2) Includes iMac, Mac mini, Mac Pro, PowerMac and Xserve product lines.
(3) Includes MacBook, iBook, MacBook Air, MacBook Pro and PowerBook
product lines.
(4) Consists of iTunes Store sales, iPod services, and Apple-branded and
third-party iPod accessories.
(5) Units consist of iPhone handset sales; Revenue is derived from
handset sales, carrier agreements, and Apple-branded and third-party
iPhone accessories.
N/M: Not Meaningful
Website: http://www.apple.com/ |
Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.
Terms and conditions, including restrictions on
redistribution, apply.
Copyright © 1996-2008 PR Newswire Association LLC.
All Rights Reserved.
A United Business Media company.
