Apple's June quarter highest in history

Apple today reported yet another a record quarter, earning $5.41 billion in revenue to mark the highest June quarter revenue in the company's history. Fueled by record breaking Mac sales and continued strong demand for iPods, Apple's revenue grew almost 25 percent over the prior June quarter to earn investors $0.92 cents per share over the past 90 days. Apple's financial chief Peter Oppenheimer pointed to a stronger than expected operating margin -- 19.2 percent -- due to unexpected revenue and favorable commodity pricing. Apple generated a net income of $818 million to rise 73 percent over the year-ago quarter, even after paying taxes at 32 percent. The Cupertino-based company increased its cash balance to more than $13.8 billion with cash flow operations of over $1.2 billion.

"Total company gross margin was 36.9 percent, higher than our guidance primarily due to favorable commodity costs, a different product pricing environment from what we expected, a more favorable product mix, and a greater mix of direct sales," Oppenheimer said. "Operating expenses were $954 million, including $55 million in stock-based compensation expense. We capitalized $26 million of software development expense during the quarter."

Apple is targeting revenue of around $5.7 billion for its next quarter, with a total quarterly cost of non-cash stock-based compensation of around $69 million. Oppenheimer is looking to a gross margin of 29.5 percent, reflecting approximately $10 million related to stock-based compensation expense.

"We are guiding gross margin down sequentially as a result of the back to school promotion, higher commodity costs, and product transitions," he said, adding that investors should look for about $0.65 earnings-per-share, including an anticipated $0.5 cents per-share related to non-cash stock-based compensation expense.

"In closing, we're very pleased with the results of the june quarter. Quarterly Mac shipments broke the previous company record by more than 150,000 systems, and we feel very positive about our momentum heading into the back to school season. We're off to a great start with the iPhone, and are continuing to invest in the business for long-term growth in revenue and earnings."

Apple's stock rose more than $2.35 following the company's quarterly report. The jump comes after shares fell sharply yesterday based on AT&T's reported number of iPhone activations, which failed to impress eager investors.

Filed under: Apple