updated 04:30 pm EST, Wed January 18, 2006
Apple reports $565M profit
Apple today reported the highest revenue and earnings in its history. For its fiscal 2006 first quarter ended December 31, 2005, Apple posted a net quarterly profit of $565 million ($.65 per diluted share) on previously announced revenues of $5.75 billion in the 14-week December quarter, beating analyst expectations of $0.61 per share profit. The results compare to revenue of $3.49 billion and a net profit of $295 million, or $.35 per diluted share, in the year-ago quarter. Gross margin was 27.2 percent, down from 28.5 percent in the year-ago quarter, while international sales accounted for 40 percent of the quarter's revenue. Apple said it shipped 1,254,000 Macs and 14,043,000 iPods during the quarter, representing 20 percent growth in Macs and 207 percent growth in iPods over the year-ago quarter.
"We are thrilled to report the best quarter in Apple's history," said Steve Jobs, Apple's CEO. "Two highlights of an incredible quarter were selling 14 million iPods and getting ready to launch our new Macs with Intel processors five to six months ahead of expectations. We are working on more wonderful products for 2006, and I can't wait to see what our customers think of them."
"We're very pleased to report year-over-year revenue growth of 65 percent and net income that was nearly twice the year-ago level," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second quarter of fiscal 2006, we expect revenue of about $4.3 billion. We expect GAAP earnings per diluted share of about $.38, including an estimated $.04 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $.42."