Apple says loss narrowed, surprising Wall St. analysts; company says slide in sales has slowed
Article Abstract:
Apple announced a loss of $32 million for the quarter ending Jun 30, 1996, a figure well below analysts' forecasts and one that indicates the company is stabilizing. While the 26-cents-per-share loss compares unfavorably with the $103 million earned in the same quarter in 1995, it is much better than the $1.07 per share loss that analysts predicted. Apple's results benefitted from a $39 million after-tax gain from the sales of America Online stock, but even without this gain, the company would have lost 57 cents per share, or $71 million. Sales for the quarter totaled $2.2 billion, 15% below sales in the prior-year quarter, but about the same as in the previous quarter in 1996. The gross profit margin rose to 18.5%, more than double the 9% profit margin in the previous quarter. Both Apple management and analysts agree that the company has not completely recovered from its problems. The company's shares rose $2.125 in after-hours trading based on the news.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Digital posts a huge loss, and stock hits two-year low
Article Abstract:
DEC lost $65.9 million in 1st qtr FY 1997 and attributed the loss to poor sales caused by a disruptive reorganization of the sales force. DEC's loss contrasts with a $48 million profit made in the same quarter in FY 1996 and causes some to doubt that the company can complete its turnaround. For 1st qtr FY 1997, overall revenues dropped to $2.9 billion, down 12% from the $3.3 billion made in the same quarter in FY 1996. Sales of Alpha-based workstations and servers grew only 4% during the quarter, in contrast to a 40% growth rate in the previous year. DEC's losses totaled 48 cents per share, three times the 14 cents per share decline that analysts had forecast. DEC's stock dropped 23% to close at $29 on Oct 22, 1996, the lowest the company's stock has traded at since 1994. Analysts say DEC's poor marketing and sales strategies have been unable to support the company's outstanding technology.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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