Apple returns to the black; stock soars
Article Abstract:
Apple estimated 4th qtr 1997 net income exceeding $45 million on revenue of $1.58 billion, surprising investors. Apple co-founder and interim CEO Steve Jobs broke the surprise profit projection to about 4,000 Macintosh fans at the Macworld Expo trade show in San Francisco. Jobs attributed the performance to a strong new product line and cost reductions. The computer maker's profit jumped 19%, or by $3.0625, to close at $18.9375 in heavy Nasdaq Stock Market trading. Apple's stock has surged 44% since Jan 2, 1998, when investors began anticipating some positive remarks from Jobs at Macworld. Especially strong new products contributed to the quarter's profit. Sales of Mac OS 8.0 have totaled about three million, while Jobs said Apple has shipped 133,000 speedy Macintoshes based on IBM's and Motorola's PowerPC 750 G3 chips. Apple, which started a steep decline in 1995, recorded its first profit since the quarter that ended in Sep 1996.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Apple still troubled after write-downs; company has fewer resources for crucial research
Article Abstract:
Apple is presently at a critical juncture in regards to its prospects for immediate financial salvation and long-term viability as a significant, technologically innovative computer manufacturer. The company has announced anticipated losses for the quarter ending Mar 31, 1996 of approximately $700 million, a large percentage of which can be attributed to write-downs Apple is taking because of excess inventory. While some analysts suggest that the steep financial measures Apple is now taking will be severe enough to help turn the company around. However, other analysts speculate that the loss in resources will have a negative impact on the company's vaunted research and development division, and that Apple must retain all technological advantages in order to reemerge a winner.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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