Apple Computer, Inc. Reports Record $2.000 Billion First Quarter
CUPERTINO, Calif. — January 14, 1993 — Apple Computer, Inc. reported Thursday record revenues for its first fiscal quarter, which ended December 25, 1992.
Net revenues for the first quarter of fiscal 1993 were $2.000 billion, a 7.4 percent increase from the $1.863 billion reported in the first quarter of the prior year. Net income for the first quarter was $161.3 million, as compared to the prior year's first quarter net income of $166.0 million.
"Demand for our systems led to Apple's first $2 billion revenue quarter. Total Macintosh unit growth was up over 31 percent in the first quarter of fiscal 1993 compared to the same quarter in fiscal 1992," said John Sculley, chairman and chief executive officer. "In the first quarter we introduced two new PowerBook computers, the Macintosh Duo line, and strengthened our mid-range with CD-ROM based systems. Fiscal 1993 will showcase new products in each of our multiple businesses–personal computing, enterprise computing, and personal interactive electronics, as we enter the most aggressive new technology cycle in our history."
Earnings in the first quarter of fiscal 1993 were $1.33 per share as compared to $1.36 per share earned in the first quarter of fiscal 1992. Gross margin was 40.5 percent of net sales in the first quarter of fiscal 1993 compared to 43.7 percent of net sales in the prior year period.
In the first quarters of both fiscal 1993 and fiscal 1992, international net sales were 45 percent of total net sales.
"The new PowerBook 180 and 160 notebooks extend Apple's leadership in portable computing," said Sculley. "We continue to see strong demand for our notebook products, selling more PowerBooks in the first quarter of this fiscal year than in any prior quarter. The new Macintosh Duo 210 and 230 systems introduced in the quarter offer users the best of both worlds by combining a Macintosh desktop computer and a PowerBook computer in a single system. There was good demand during the quarter for the Duo systems, as well as for our new mid- range products targeted at multimedia users. Over 35 percent of the Macintosh IIvi and IIvx, and Performa 600 computers shipped during the quarter were systems that included CD-ROM drives.
"In January at MacWorld, we launched a new range of imaging products, bringing color for the first time to Apple's line- up of printers and scanners. Apple's new product momentum doesn't stop here. Over the next several quarters, we plan to bring technology enhancements to the full range of Macintosh products, as well as bring to market new high end servers, and introduce Apple's first personal digital assistant (PDA) products.
"During the first quarter of fiscal 1993, product ramp transitions and constraints on supplies of strategic components led to backlogs on several products, notably in the PowerBook and Duo families. While we are working to relieve shortages in strategic supplies, we do not expect to be out of backlog on certain products until the second half of the year.
"As anticipated, the gross margin percentage declined in the first quarter due to new product introductions and pricing actions taken on older products in response to industry conditions.
"While continuing to grow our business, Apple has practiced exceptional expense control during the first fiscal quarter of 1993. Operating expenses as a percentage of net sales declined to 28.5 percent, the lowest level in over seven years of our history.
"The personal computer industry is experiencing overall strong demand, and Apple has shared in this growth. For the second year in a row Apple has received the highest ranking in J.D. Power and Associates Business User Satisfaction studies for both Apple personal computers and Apple LaserWriter printers. Our technology does make a difference.
"We continue to evolve our business strategy of remaining the technology leader in personal computing, while building multiple new businesses," Sculley concluded.
Note to Editors: Apple, the Apple logo, Macintosh and LaserWriter are registered trademarks and PowerBook and Performa are trademarks of Apple Computer, Inc.
APPLE COMPUTER, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share amounts)
Three Months Ended
December 25, December 27,
1992 1991
Net sales $ 2,000,292 $1,862,612
Costs and expenses:
Cost of sales 1,189,367 1,049,331
Research and development 160,282 131,065
Selling, general and administrative 409,858 419,562
1,759,507 1,599,958
Operating income 240,785 262,654
Interest and other income, net 19,442 5,117
Income before income taxes 260,227 267,771
Provision for income taxes 98,886 101,753
Net income $ 161,341 $ 166,018
Earnings per common and common equivalent share $ 1.33 $ 1.36
Cash dividends paid per common share $ .12 $ .12
Common and common equivalent shares used in the calculations of earnings per share 121,156 122,132
APPLE COMPUTER, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands) December 25, December 27,
1992 1991
Assets
Current assets:
Cash and short-term investments $ 1,445,866 $ 988,498
Accounts receivable 1,198,738 973,497
Inventories 596,613 643,347
Prepaid income taxes 212,946 242,475
Other current assets 249,160 223,733
Total current assets 3,703,323 3,071,550
Net property, plant, and equipment 639,333 456,130
Other assets 151,953 217,784
$ 4,494,609 $ 3,745,464
Liabilities and Shareholders' Equity
Current liabilities $ 1,537,819 $ 1,270,754
Deferred income taxes 673,992 551,942
Shareholders' equity 2,282,798 1,922,768
$ 4,494,609 $ 3,745,464
CONTACT:
Apple Computer, Inc.
Mary Ann Cusenza, Investor Relations, 408/974-4178
Christopher Escher, Public Relations, 408/974-2202