Apple posts $46M profit, iPod sales up 909 percent

Apple today posted a net profit of $46 million, or $.12 per diluted share for the second fiscal quarter of 2004--up from the net profit of $14 million, or $.04 per diluted share, in the year-ago quarter. Revenue for the quarter was $1.909 billion, up 29 percent from the year-ago quarter. Gross margin was 27.8 percent, down from 28.3 percent in the year-ago quarter. International sales accounted for 43 percent of the quarter's revenue. The quarter's results include an after-tax restructuring charge of $7 million. Excluding this charge, Apple's net profit for the quarter would have been $53 million, or $.14 per diluted share. Apple shipped more iPods than Macs in the quarter and raised both revenue and EPS estimates for the third quarter.

Apple said it shipped 749,000 Macintosh units and 807,000 iPods during the quarter, representing a 5 percent increase in CPU units and a 909 percent increase in iPods over the year-ago quarter.



"Apple had a great quarter with 29 percent revenue growth and 200 percent earnings per share growth year-over-year," said Steve Jobs, Apple's CEO. "We experienced growth in most areas of our business-most dramatically in selling a record 807,000 iPods, up more than 900 percent over the prior year."



"We are very pleased with our third straight quarter of double-digit revenue growth," said Fred Anderson, Apple's CFO. "More importantly our results demonstrate operating margin expansion. Our balance sheet remains very strong with about $4.6 billion in cash and no debt. Looking ahead to the third quarter of fiscal 2004, we expect our fourth consecutive quarter of year-over- year double-digit growth in both revenue and earnings, with revenue of about $1.925 billion. We expect GAAP earnings per diluted share of $.12 to $.13, including approximately $.02 per diluted share in restructuring charges."

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