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Apple posts $61 million profit on $2.014B in revenue

updated 04:30 pm EDT, Wed July 14, 2004

Apple earns $61 million

Apple today today posted a net profit of $61 million, or $0.16 per diluted share for its fiscal 2004 third quarter ended June 26, 2004. These results compare to a net profit of $19 million, or $0.05 per diluted share, in the year-ago quarter. Revenue for the quarter was $2.014 billion, up 30 percent from the year-ago quarter, while gross margin was 27.8 percent, up from 27.7 percent in the year-ago quarter. Apple said it shipped 876,000 Macs and 860,000 iPods during the quarter, representing a 14 percent increase in CPU units and a 183 percent increase in iPods over the year-ago quarter.

International sales accounted for 39 percent of the quarter's revenue. The quarter's results include an after-tax restructuring charge of $6 million. Excluding this charge, the Company's net profit for the quarter would have been $67 million, or $.17 per diluted share.

"It was an outstanding quarter-our highest third quarter revenue in eight years," said Steve Jobs, Apple's CEO. "Our Mac-based revenue grew a healthy 19 percent, and our music-based revenue grew an incredible 162 percent. We've got a strong product portfolio, with some amazing new additions coming later this year."

"We were very pleased with our 30 percent year-over-year revenue growth and our operating margin expansion," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the fourth quarter of fiscal 2004, we expect revenue of about $2.1 billion and earnings per diluted share of $0.16 to $0.17, including $0.01 per diluted share in restructuring charges."

by MacNN Staff

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Makosuke
Fresh-Faced Recruit

Joined: Aug 2001

0

07/14, 04:38pm | report spam | close Reply |
Hey, not bad

Nice, healthy looking numbers. Even CPU sales are loking pretty good, and considering that both the iMac and G5 are just shy of an update for this quarter, that's even better. I expect PMG5 sales should be up next quarter, and iMacs in the toilet since there are none to sell, but oh well, things will hopefully look really bright in the holiday quarter.

Just one question: What on earth are all these "after-tax restructuring charges"?

paulc
Junior Member

Joined: Aug 2000

0

07/14, 04:39pm | report spam | close Reply |
I wonder...

what the picture would have been like if they expensed options like they are going to be required to do?

Nitride
Fresh-Faced Recruit

Joined: Sep 2001

0

07/14, 04:39pm | report spam | close Reply |
Good lord!

They shipped nearly as many iPods as Macs. Whew! And when it was introduced everyone couldn't figure out if anyone would really buy the darn things.

Of course, that kinda makes the Mac market look rather pathetic by comparison (hint: lower prices a bit across the board Apple, in a few months it will be tax refund time and I'd like a new computer!).

shawnce
Fresh-Faced Recruit

Joined: Nov 2000

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07/14, 05:02pm | report spam | close Reply |
Nitride yeah but...

Mac revenues are about 4.4 times greater then iPod revenues so iPod sales have a way to go to eclipse Mac sales.

Look over... http://images.apple.com/pr/pdf/040714datasum.pdf

iomatic
Mac Elite

Joined: Oct 1999

0

07/14, 05:15pm | report spam | close Reply |
"oh, but...

...those numbers are horrible compared to the PC market...blah blah blah...excuse, excuse, (blatantly vague statistic), etc."

Where are those Apple-basher Window-apologists...oh they didn't bother to register, or bother to have a clue.

b******.

...
...
...

jumanji
Fresh-Faced Recruit

Joined: Apr 2004

0

07/14, 05:15pm | report spam | close Reply |
didn't they also announc

that the new iMacs will be G5 models?

1800-whatever
Fresh-Faced Recruit

Joined: Jan 2004

0

07/14, 05:25pm | report spam | close Reply |
re: G5

yes they did
Oppenheimer also let it be known that the new iMac coming this September will be based on a G5 processor

macboyrules
Fresh-Faced Recruit

Joined: Oct 2000

0

07/14, 05:40pm | report spam | close Reply |
"after-tax restructuring

"After-tax Restructuring" is the corporate way of saying "We layed a bunch of people off but we don't want bad press about it."

-macboy

iamnoone
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Joined: Jul 2003

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07/14, 05:41pm | report spam | close Reply |
Don't worry iomatic..

Klinux will be here very shortly, I'm sure, to make sure to spin this into some sort of apple sucks and all you Zealots are stupid statement.....

klinux
Senior User

Joined: Jul 2002

0

07/14, 08:35pm | report spam | close Reply |
Hello!

Some one called my name? I am here. ")

The results look good. Tripling of revenue is nothing to scoff at. My company recently announced earnings too and we only doubled. Way to go Apple.

In any case, # of CPU shipped incr by 14% is not that spectacular. I do not know what Dell's # is for this quarter but I know last year same quarter they increased it by 29%. And like paulc mentioned, expensing options will hurt the EPS and it will come sooner or later.

Don't make it sound like I hate Apple. Rather, I love Apple but just can't stand the everything Apple does is good and Jobs is Meeisah sentiment espoused by some around here.

mbryda
Senior User

Joined: Mar 2002

0

07/14, 09:08pm | report spam | close Reply |
STFU, Klinux.

Anytime you increase sales, that's a good thing. It means you are growing your market, which is a good thing.

Who cares about Dell? They may have increased 29% last quarter, but what's that over the year? Remember about every quarter, them and HP/CPQ swap being #1. And, I would say their increase will be short lived as people: 1) finish upgrading, and 2) don't buy Dell next time around.

More and more people are building their own PC's and that's hurting all OEM's. Add to that the many who are getting fet up with Dell's non-support (or non-English speaking support), and their share may be down this time next year or in 3 years. Remember, these things are cyclical and who'se on top today won't necessarily be on top tomorrow.

As long as Apple keeps shipping more Macs, that's a good thing - it will increase the apparent market share and can only help to lure more people and developers.

And as long as they keep making money it's a good thing.

But I think a good price drop would do good to ship even more Macs.

beeble
Fresh-Faced Recruit

Joined: Mar 2004

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07/14, 10:30pm | report spam | close Reply |
Anyone see Intel today

Intel announced bad results and made poor predictions for the future. They traded a record 283,000,000+ shares and dropped more than 10.5%. Meanwhile, Apple (going broke for 20 years and counting) increases sales in dollars and units, has excellent results from almost every area of its business, announces new, eagerly awaited products and makes predictions of another great quarter.

Sounds to me like they're going into bankruptcy any minute!

chas_m
Fresh-Faced Recruit

Joined: Aug 2001

0

07/14, 10:35pm | report spam | close Reply |
Growth

Just wanted to say that THIS is the kind of growth Apple wants ... slow, steady, relentless.

Just two years ago, Apple was a $1.6B/quarter company ... now it looks pretty solidly $2B/quarter average, and with new products coming later this year, one of them could be "the next iPod" that drives them up to $2.2B/quarter and beyond.

In short, if we can avoid "slippage" on the economy (hint: regime change), we could well be looking at a nice "golden age" for the company for the next few years.

I really have to applaud Apple for doing LITERALLY what they said they would do ... "innovate their way out of this." Bravo. Now keep the costs down, the board more diverse and the books shiny clean, and we can all sit back and enjoy the forthcoming party as much as we've enjoyed the last couple of years.

waffffffle
Mac Elite

Joined: Sep 2000

0

07/14, 11:30pm | report spam | close Reply |
Avoid slippage?

chas_m, I certainly hope you don't actually think that this administration is helping Apple. Apple is a left-leaning company, and for good reason. When your biggest competitors (Microsoft, Intel) are funding republicans and lobbying for legislation that extend their dominance, it makes sense for Apple to support democrats who oppose the massive corporate behemoths and their anti-competitive practices. A regime change is EXACTLY what Apple needs right now. Then Ashcroft can be removed from the justice department and Microsoft can be punished for the crimes that they've been convicted of. If the sentencing is properly done then Apple will surely benefit.

LouZer
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Joined: Nov 2000

0

07/15, 12:10am | report spam | close Reply |
Stuff

"After-tax Restructuring" is the corporate way of saying "We layed a bunch of people off but we don't want bad press about it."

Umm, everyone knows they laid off people. It was in the news a couple of months ago.

And like paulc mentioned, expensing options will hurt the EPS and it will come sooner or later.

Read the 10-Q (or is it the balance sheet, damn, can't remember), its always mentioned in there as an asterisk item. And how it affects the EPS is immaterial, because if your investing in Apple or any company without taking this stuff into account and just basing your investments on semi-worthless stats like EPS, well, your bound to lose your money.

LouZer
Fresh-Faced Recruit

Joined: Nov 2000

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07/15, 12:12am | report spam | close Reply |
More Stuff

Oh, the big question is "How much of Apple's profit is from interest on their money stock-pile?"

Squirrel_Monkey
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Joined: May 2004

0

07/15, 01:23am | report spam | close Reply |
Interesting point, LouZer

Oh, the big question is "How much of Apple's profit is from interest on their money stock-pile?"

I'm not sure how this factors into profit. One would believe the profit they report is based solely on revenue. Apple's cash stash is worth advertising, because it makes their stock look really good, which keeps the stock afloat.

klinux
Senior User

Joined: Jul 2002

0

07/15, 01:41am | report spam | close Reply |
Tsk tsk

mbryda, you got to calm down before you burst a vein and die or something.

See, to you Apple shipping one more unit than before is a great thing and making $1 is a wonderful thing. Well, to some of us, that shortsightedness is not enough. If Apple had opportunity to increase machines shipped by 30% but only increased 25%, any Apple shareholder and supporter has the right to complain.

Mostly, I am not predicting the death of Apple; I am am glad it is successful and am merely wishing it can be even more successful. But here you are predicting the death of Dell, Intel, MS, stupid marketers, PC users, dumb lazy people at your company, etc - who is the one that needs to STFU?

Lastly, I do not know where you learned your math from. Increasing units shipped does not mean an increase in marketshare. If you ship 1% more widget and your competitors ship 5% more widgets, you are not increase your market share.

Calm down mbryda. Take a chill pill. Relax.

mbryda
Senior User

Joined: Mar 2002

0

07/15, 07:45am | report spam | close Reply |
Waah Waaah

Where did I predict the death of anyone? I'just said Dell's growth is for now and it will most likely be short. While I would like to see MS, Dell, and Intel close up shop, I don't think it will happen in my lifetime, if ever. (Although I do like Dvorak's idea to Close MS...)

If you look at the history of this industry, we are ripe for a change. Did is before many times (Word Perfect - Word, DOS -Windows, 123 - Excel, Novell - MS, etc) and we just need that "straw that breaks the camel's back" to get away from MS. It's starting, although slowly...

While selling 1 more unit and maing $1 more is not always a good thing, but a 14% increase in sales with a mainly stagnent product line is nothing to sneeze at either. But, I think if they would drop prices (and cur the margins), they could sell more. At least in the short term until component costs shrunk to regain the margins.

I won't even touch the marketshare, as units sold units in use.

klinux
Senior User

Joined: Jul 2002

0

07/15, 12:42pm | report spam | close Reply |
joker

Earlier: "As long as Apple keeps shipping more Macs, that's a good thing ....And as long as they keep making money it's a good thing."

Later: "While selling 1 more unit and maing $1 more is not always a good thing"

Make up your mind!

As for predicting death, you just said you would like to see MS, Dell, Intel close shop and things are ripe for a change ... but not in your lifetime.... and what part of that is not a prediction? Look up the definition.

"As long as Apple keeps shipping more Macs, that's a good thing - it will increase the apparent market share and can only help to lure more people and developers."

Of course, Apple has been shipping more and more Macs. Is it increasing the marketshare? No.

I won't even touch the marketshare, as units sold units in use.

Well, too bad, Marketshare as it is currently used in the industry means units shipped. When you talk markshare with people in the industry, that's what it means.

If you like to argue differently, by using mindshare, user base, great, whatever, and argue that marketshare as units shipped is somehow less relevant, be my guest. But to redefine terms to your liking? I think not. 14% increase in units shipped is good and but if industry sans Apple increased by 20%, then not good enough. This is all very simple. But you do not seem to get it.

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Apple posts $61 million profit on $2.014B in revenue

updated 04:30 pm EDT, Wed July 14, 2004

Apple earns $61 million

Hey, not bad

I wonder...

Good lord!

Nitride yeah but...

"oh, but...

didn't they also announc

re: G5

"after-tax restructuring

Don't worry iomatic..

Hello!

STFU, Klinux.

Anyone see Intel today

Growth

Avoid slippage?

Stuff

More Stuff

Interesting point, LouZer

Tsk tsk

Waah Waaah

joker

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Apple posts $61 million profit on $2.014B in revenue

updated 04:30 pm EDT, Wed July 14, 2004

Apple earns $61 million

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Hey, not bad

I wonder...

Good lord!

Nitride yeah but...

"oh, but...

didn't they also announc

re: G5

"after-tax restructuring

Don't worry iomatic..

Hello!

STFU, Klinux.

Anyone see Intel today

Growth

Avoid slippage?

Stuff

More Stuff

Interesting point, LouZer

Tsk tsk

Waah Waaah

joker

Login Here

Register for our weekly email newsletter:

Connect tools:

Subscribe

to our RSS

Follow us

on Twitter

10 Most Read

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MacNN Marketplace