updated 05:00 pm EDT, Tue June 18, 2002
Apple today warned that it expects revenues for the third fiscal quarter of 2002 to fall below original projections of $1.6 billion. Apple warned Tuesday that revenue would reach no more than $1.45 billion. "Like others in our industry, we are experiencing a slowdown in sales this quarter. As a result, we’re going to miss our revenue projections by around 10%, resulting in slightly lower profits,” Apple CEO Steve Jobs said. A financial conference call with CFO Fred Anderson is currently in progress.
Apple said that the lower-than-expected revenues are primarily due to soft demand in the consumer and creative markets such as advertising and publishing. Geographically, revenues in Europe and Japan have become particularly weak. Apple said the revenue shortfall is expected to be offset significantly by higher-than-expected gross margins primarily due to lower costs of some components. Accordingly, the company revised its earnings guidance to $.08 to $.10 per diluted share, compared to previous guidance of $.11 or slightly higher.