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Apple Reports Record Second Quarter Results

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aryayush

Aspiring Novelist
Financial Statements
Data Summary

Apple Reports Record Second Quarter Results

Revenue Up 43 Percent Year-Over-Year


CUPERTINO, California—April 23, 2008—Apple® today announced financial results for its fiscal 2008 second quarter ended March 29, 2008. The Company posted revenue of $7.51 billion and net quarterly profit of $1.05 billion, or $1.16 per diluted share. These results compare to revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share, in the year-ago quarter. Gross margin was 32.9 percent, down from 35.1 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter’s revenue.

Apple shipped 2,289,000 Macintosh® computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The Company sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter. Quarterly iPhone™ sales were 1,703,000.

“We’re delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters.”

“We’re thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00.”

Apple will provide live streaming of its Q2 2008 financial results conference call utilizing QuickTime®, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, April 23, 2008 at www.apple.com/quicktime/qtv/earningsq208/ and will also be available for replay.

This press release contains forward-looking statements about the Company’s estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include potential litigation from the matters investigated by the special committee of the board of directors and the restatement of the Company’s consolidated financial statements; unfavorable results of other legal proceedings; the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; continued competitive pressures in the marketplace; the Company’s reliance on sole service providers for iPhone in certain countries; the continued availability on acceptable terms of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the effect that product quality problems could have on the Company’s sales and operating profits; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company’s dependency on the performance of distributors and other resellers of the Company’s products; the Company’s reliance on the availability of third-party digital content; and the potential impact of a finding that the Company has infringed on the intellectual property rights of others. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 29, 2007, its Form 10-Q for the quarter ended December 29, 2007, and its Form 10-Q for the quarter ended March 29, 2008 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

[Via Apple]
 

slugger

Banned
Great News indeed :)
The profit part was never in doubt - its selling ipods by the exatonne

it is the profit margin that is the more relevant issue here

there is a drop in profit margins

this is hardly surprising since if you take away the revenue generated by iPods, apple would be in Red that would be Redder then the Reddest Reds

unless apple adresses this, well......

Great news nevertheless :)
 

iMav

The Devil's Advocate
err actually according to reports there is a slump in iPod sales but Mac sales have increased by a huge margin and apple's stock prices are staggering
 

slugger

Banned
ripples already felt in the stock market

Apple share prices drop in face of less than predicted 1st quarter results

Apple dropped 90 cents to $161.99 in Germany. The company forecast profit of $1 a share for the current quarter, missing the average analyst projection of $1.11 in a Bloomberg survey of analysts. Sales will rise to $7.2 billion, in line with estimates.
Source

Now please don't say Stok market market does not make ay difference - Apple (just like any other listed co) craves each and every cent of moey it can generate from the market :)

Even if you make products for the likes of Britney Spears - it is the average Joe investor from whom you accepting the money - investor's losing faith in Apple

err actually according to reports there is a slump in iPod sales......
not really :)

iPods sales have risen 1% in the first quarter = 10.6 million iPods

wheres 54% rise in Mac = 2.29 million Macs

thats y i said Apple is floating based purely on the volumes of iPod sales generate
 
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aryayush

aryayush

Aspiring Novelist
slugger, I'm sorry to say this, but you have no idea what you're talking about.

The big news was the staggering Mac notebook sales. iPod sales were paltry and disappointing.

Apple didn't miss any estimates. It's their own estimates that count, not analysts' estimates.

Apple's stock price fluctuates wildly and seldom has any relation to real-world happenings. In any case, it's at 168.94 right now, so it's on the rise.

Again, it was the Mac sales that made the big news, not the iPod sales. And, surprised as you might be to hear this, everything Apple sells is important. Apple wouldn't be the same without the iPod, sure, but they wouldn't even exist in the first place if it weren't for the Mac. The Mac always has been and still remains Apple's primary focus. It's the company's identity, their flagship product.

Also, more unit sales does not mean more profit. Apple makes as much profit from Macs as they do from iPods, even though the later sells more. That's because Macs are much higher priced, not mass-market consumer products and have higher profit margins.

So a 54% increase in Mac sales is HUGE news and 1% increase in iPod sales is disappointing, compared to previous years. It's basic business school 101.
 
OP
aryayush

aryayush

Aspiring Novelist
Why Market Share and Revenue Are Bullshit

Motorola’s quarterly results: 27.4 million phones sold and $7.45 billion in revenue. But the bottom line? A $194 million loss.

What matters is profit; market share and revenue only matter insofar as they lead to making money. Motorola sold 16 times more phones than Apple for at least 8 times more revenue — but is there a person on the planet who would trade Apple’s phone business for Motorola’s?

[Via Daring Fireball]
 
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