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Apple records a net profit of $111 m., IBM to produce G4 chips

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CIOL Bureau
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BANGALORE: Apple reported earnings of $90 million, or 51 cents a

share, for the three months ended September 25, excluding non-recurring items.

Including an after-tax gain of $37 m from the sales of three million shares of

ARM Holdings Plc and a net restructuring charge of $16 m for contract

cancellation charges, Apple reported a net profit of $111 million, or 63 cents a

diluted share, versus $106 million, or 68 cents a share. Revenues in the quarter

fell to $1.34 billion, down 14 per cent from a year earlier. Gross margins rose

to 28.7 per cent from 26.8 per cent.

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Apple chief financial officer Fred Anderson outlined orders for the

company’s bevy of new products and said that he expects Apple to have a strong

first fiscal quarter, with revenues and units significantly higher than a year

ago and the fourth quarter.

Profit margins, however, are expected to decline from 28.7 per cent in the

quarter, due to higher prices of memory chips and a bigger portion of lower-cost

consumer products in its product sales in the December quarter. Apple received

300,000 orders for its new iBook, but only shipped 6,000 units. It also has over

250,000 orders for the new iMacs, which were just launched last week, and it had

150,000 orders for the new G4s.

Mr Anderson said that Apple should be able to meet all the orders for its

products, except that it expects to be supply constrained with the iBook. The

company said that IBM, its former partner in the development of the PowerPC

processor, would begin making the G4 processor chips in the first half of

calendar 2000.

For the year, Apple posted revenues of $6.1 billion and net earnings of $601

million, or $3.61 per diluted share. That compared with revenues of $5.9 billion

and net earnings of $309 million, or $2.10 per diluted share, in the prior year.

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