Apple harvest of earnings stuns industry
Article Abstract:
Apple's $25 million net income for its 4th qtr ending Sep 27, 1996, has surprised industry analysts. Some of the profit was actually reclaimed from a $207 restructuring charge taken earlier in the year, which was larger than needed. The company's profit would have been $8 million without the adjustment. The 4th qtr results amount to 20 cents per share for stockholders, which would have been six cents per share without the adjustment. Analysts had expected a loss of 30 cents per share for the period. Apple's net income was $60 million in the same quarter last year. The company's net loss for FY 1996 was $816 million on annual sales of $9.83 billion. The company reported earnings of $424 million on sales of $11.1 billion in 1995. Apple has returned to profitability six months before analysts predicted, but the company still faces problems. Apple's stock price rose sharply on the news during after-hours trading.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Apple picks Hancock for top R&D post
Article Abstract:
Apple announces that veteran IBM and National Semiconductor executive Ellen Hancock is the company's new Chief Technology Officer and Exec VP for R&D. Analysts report that Hancock's tenure at IBM, an organization renowned for slow decision-making, may prevent her from making decisive management changes in the frantic and fiercely competitive computer industry. Apple must quickly develop and market innovative Macintosh and other products if the company will have any chance at profitability and market survival. However, others indicate Hancock's ability to apply order and discipline to the company will have positive results. Also, Hancock's expertise in corporate computing may help Apple profit in the Fortune 1000 market. Hancock has no specific plans but will not hesitate to make sweeping organizational changes and will emphasize multimedia and the Internet in upcoming Apple products.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Apple's woes spoil business for suppliers
Article Abstract:
Apple's financial problems are affecting the company's retailers, suppliers and applications developers. Motorola's semiconductor division recently reported unexpected low sales and profits, IBM also reports weak sales of its PowerPC chips. Many vendors of Macintosh peripherals and applications are broadening their product lines to encompass other platforms. Mail-order computer vendor Micro Warehouse will report low sales and profits for its Jun 1996 quarter because of declining Macintosh sales and the company is reevaluating its business plan. Macromedia Inc blames its lower revenues on the Macintosh slowdown. Apple will soon report the results for its Jun 1996 quarter, but currently refuses to discuss the situation. Observers have noted a recent decline in shipments of Macintosh computers and Mac sales in PC superstores are down almost 30 percent in April and May.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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