SEC filing notes

Apple's latest U.S. Securities and Exchange Commission filing is now available online. The report covers Apple's financial situation as of the end of calendar 2003. According to the report, PowerMac, PowerBook, and iPod sales all increased during the last quarter, while iMac sales fell. Regionally, Europe saw the largest sales increase. We've compiled a list of important points from the filing.

• Since the year ago quarter, Apple's net sales, gross margin, income and earnings have all increased.
  
• Apple has $4.8 billion in total assets, compared to $4.6 billion at the end of the previous quarter.
  
• Apple spent roughly the same on research and development as it did a year before ($119 million compared to $121 million.
  
• Net sales during the first quarter of 2004 increased 36% or $534 million from the same quarter in 2003.
  
• Net sales in the Americas totaled $924 million, a 25% increase over the year ago quarter
  
• Net sales in Europe were $240 million, a 48% boost.
  
• Sales in Japan totaled $157 million, a 14% increase.
  
• Retail sales increased 84% to $273 million.
  
• Interestingly, unit sales in the Americas did not increase, while sales Europe and Japan increased by 19% and 8%, respectively.
  
• PowerBook sales increased by 93% since the year ago quarter.
  
• Power Mac sales increased by 30%.
  
• iMac sales dropped 24%.
  
• Most notably, iPod unit sales increased by 235% since late 2002.
  
• Net sales of software rose $61 million or 69% during the first quarter of 2004 compared to the same quarter in 2003.
  
• The Company’s effective income tax rate for the first three months of 2004 and 2003 was approximately 28%.
  
• Apple remains dependent on Microsoft, as the company is no longer obliged to produce its Office software for Mac. The company is also no longer obliged under its 1997 agreement with Apple to produce Internet Explorer, but Apple has released its own browser in response to this.
  
• Apple also says it is reliant on music availability from third parties for its online store.
  
• Additionally, Apple says it faces increasing competition in the U.S. education market.
  
• "There can be no assurance that the Company will be able to increase or maintain its share of the education market or execute profitably on large strategic arrangements. Failure to do so may have an adverse impact on the Company’s operating results and financial condition."
  
• Apple is also involved in a number of proceedings, including a lawsuit from Apple Corps alleging Apple Computer breached a 1991 agreement which resolved earlier trademark litigation regarding use of the Apple marks.
  
• Five resellers have filed lawsuits against Apple for various causes of action including breach of contract, fraud, negligent and intentional interference with economic relationship, negligent misrepresentation, trade libel, unfair competition and false advertising.
  
• On October 1, 2003, one of the resellers, Macadam was deauthorized as an Apple reseller. Macadam filed a motion for a temporary order to reinstate it as a reseller, which the Court denied.
  
• Added:Apple also said in the filing that, if it had expensed the costs of stock options for employees based on the Black-Scholes method of determining value, its fiscal first-quarter earnings would have been 9 cents per share instead of the 17 cents per share it reported
  
• The full filing can be found .
  
  

by MacNN Staff