Apple expects it will lose $700 million; more layoffs are seen for computer maker
Article Abstract:
Apple anticipates a $700 million after-tax loss for 2nd qtr FY 1996, a figure that surprises analysts even though they had expected a significant loss. Apple attributes 50% of the loss to write-downs on $1 billion in unsold inventory, and another 25% comes from restructuring costs, leading analysts to believe the company will lay off more workers. Apple already laid off 1,200 employees after a 1st qtr loss of $69 million. Apple also concedes that product shipment volumes and revenue for the quarter will be well below the levels reached in 2nd qtr 1995. The decline in sales can be attributed in part to overall slowing in the PC industry. Recently appointed Chmn and CEO Gilbert F. Amelio claims to have a way to reverse Apple's decline, but he releases no specific details. Apple's stock rose $1.375 on the news to close at $25.25 on Mar 27, 1996, a sign that the market believes Apple is taking the proper steps to remedy its problems.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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3d-quarter loss at Apple Computer is smaller than expected
Article Abstract:
Apple has posted it losses for its third qtr ended Jun 27, 1997 as $56 million, or 44 cents per share. The loss was smaller than the 61 cents a share that analysts had expected from the company. Apple has apparently begun a new hardware project, ordered by Steven Jobs, involving a network computer. The company is planning to lose money in its fourth qtr as well, but is reducing its operating expenses. An executive search has begun to replace Apple's former CEO, Gilbert Amelio, and Jobs has begun spending more time at the company, to fill the leadership role. Apple's sales have fallen substantially behind in the past year, dropping from 838,000 in the third qtr of 1996 to 698,000 during the quarter ended in Jun of 1997.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Comment about this article or add new information about this topic:
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