Less cash, large losses: Apple's dwindling dollars
Article Abstract:
Apple is facing a cash shortage that could soon cause a crisis that would force the company to cut back its operations. The third-ranked computer company in the US has seen its stock price slip from $35 early in 1996 to $24.125 in April. Revenues for the quarter ending Mar 29, 1996, are expected to be far below the $2.6 billion reported for last year's same quarter. Analysts predict the revenue will be around $2.5 billion for the period; Apple will make its official announcement on Apr 17. The company is expected to take a $700 million loss after taxes for the quarter. The company's cash levels have dropped from $1.5 billion 15 months ago to an estimated $1.1 billion. Apple's $304 million in long-term debt was downgraded to junk-bond status in late March. The company has not paid a $187 million note that was due in March and a $203 million loan is due in April. Apple has suspended its dividend to save cash and is renegotiating its debts.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Apple is said to be seeking friendly deal; search revived as Saudi Acquires 5%
Article Abstract:
Apple officials report on Apr 3, 1997 that they are looking for a company with which to merge. The news came shortly after Prince Walid bin Talal of Saudi Arabia announced that he had acquired just over 5% of the company for $115 million. The prince is a well-known international investor who has purchased troubled companies in the past. The prince's announcement caused Apple's stock to reach $18 a share, an increase of 50 cents. In other Apple news, Oracle Chmn, Larry Ellison stated in late Mar 1997, that he and unidentified partners were considering acquiring Apple at a projected cost of $1 billion. Apple is struggling to return to profitability and is in the midst of a restructuring. The company lost $936 million over the last five quarters and laid off 4,100 employees in Mar 1997.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Saudi prince sees promise in Apple stake; avoids taking sides on a bid by Ellison
Article Abstract:
Saudi Arabia's Prince Walid bin Talal has purchased just over 5% of Apple's stock after looking over more than 10 technology companies during 1996. The prince choose to purchase Apple's stock based on his belief that the company has loyal customers, a great franchise and an inexpensive product. In regards to the takeover bid that Larry Ellison, Oracle's chairman, has been considering, Prince Walid is keeping his options open, claiming he knows and likes Ellison. He also is interested in talking with Apple's chmn Gilbert F. Amelio to discuss his plans for the company's future. Prince Walid says he feels confident purchasing 5% of Apple because it sold $8 billion of goods, even though it is going through such a hard time.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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