Apple posts $430M profit

Apple today reported the highest revenue and earnings in the company's history, posting a $430 million quaterly profit ($0.50 per diluted share) on increased revenues of $3.68 billion--a more than 50 percent increase from the year-ago revenues ($2.35 billion) and 400 percent increase over the year-ago quarterly profits of $106 million ($0.13 per diluted share). Apple shipped 1,236,000 Mac units and 6,451,000 iPods during the quarter, representing 48 percent growth in Macs and 220 percent growth in iPods over the year-ago quarter. "We're thrilled to have concluded the best year in Apple's history, with 68 percent year-over-year revenue growth and 384 percent net profit growth," said Steve Jobs, Apple's CEO. "This is the direct result of our focus on innovation and the immense talent and creativity at Apple. We could not be more excited about the new products we're working on for 2006." [updated]

Apple also said that quarterly gross margins were 28.1 percent, up from 27.0 percent in the year-ago quarter and thati nternational sales accounted for 40 percent of the quarter's revenue. The statement said that earnings per share benefited by $.12 from several tax items related to net deferred tax assets, tax reserves, and a revision to the full year tax rate estimated in prior quarters.

For fiscal 2005, the Company generated revenue of $13.93 billion and a net profit of $1.335 billion, reflecting annual growth of 68 percent and 384 percent, respectively, and representing the highest yearly annual revenue and net profit in the Company's history.

"We're very pleased to report 48 percent year-over-year growth in Mac shipments in Q4, as well as our 10th consecutive quarter of record iPod sales," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the first quarter of fiscal 2006 which will span 14 weeks, we expect revenue of about $4.7 billion. We expect GAAP earnings per diluted share of about $.46, including an estimated $.03 per share expense impact from non-cash share-based compensation, translating to non-GAAP EPS of about $.49."

by MacNN Staff