Unexpectedly, Apple reverses year's losses; but long-term outlook is still far from certain

Article Abstract:

Apple earned a $25 million profit for 4th qtr FY 1996, a dramatic improvement over the losses suffered earlier in FY 1996, but analysts say the company's future remains uncertain. The $25 million in net income is well below the $60 million net income earned in 4th qtr FY 1995. Apple's revenues for the quarter totaled $2.3 billion, down from the $3 billion earned in 4th qtr FY 1995. Strict cost-cutting measures accounted for most of the profit, and some analysts contend that Apple was simply trying to improve its reputation before the December retail season began. Apple said that its products continued to sell well in the education market and claimed that corporate sales in the US grew by $50 million. Apple's gross margin grew to 22%, up from 18.5% in 3rd qtr 1996, a strong sign that the company will be able to compete in the PC price wars. Apple expects a return to sustainable profitability by 2nd qtr FY 1997.

Computers & Auxiliary Equip, Company sales/revenue, Company earnings/profit

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Apple reports quarterly loss that is larger than expected

Article Abstract:

Apple reported a loss of $161 million, or $1.26 a share, for the 4th fiscal qtr 1997. The setback exceeded Wall Street analyst expectations of $17 milion, or 14 cents a share, before charges. A steep drop in Japanese business damaged Apple's revenue, and the company took charges related to a revamping and the repurchase of Power Computing's Macintosh license. By comparison, Apple earned $25 million, or or 20 cents a share, in 4th qtr 1996 net profit. Fourth qtr 1997 losses would have been $24 million, or 19 cents a share, without the Power Computing Macintosh licensing charge. Apple lost $1.045 billion in FY 1997, compared with $816 million in losses for FY 1996. Weak international sales lowered the total number of 4th qtr 1997 shipments to 652,000. Apple revenue has fallen 50% since 1996 in Japan, where the company's technology has been popular.

Computers, Company Sales/Revenue, Company Earnings/Profit

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