Apple
APPLE COMPUTER INC (Form: 8-K, Received: 07/16/2003 16:05:48)

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

 

July 16, 2003

Date of Report (date of earliest event reported)

 

APPLE COMPUTER, INC.

(Exact name of Registrant as specified in its charter)

 

California
(State or other jurisdiction of
incorporation or
organization)

 

0-10030
(Commission File Number)

 

94-2404110
(I.R.S. Employer
Identification Number)

 

1 Infinite Loop, Cupertino, CA 95014
(Address of principal executive offices)

 

(408) 996-1010
(Registrant’s telephone number, including area code)

 

Not Applicable
(Former name or former address, if changed
since last report)

 

 



 

Item 7.            Financial Statements and Exhibits

 

(c)                                   Exhibits

 

The following exhibits are filed herewith:

 

Exhibit
Number

 

Description

 

 

 

99.1

 

Text of press release issued by Apple Computer, Inc. dated July 16, 2003.

 

 

 

99.2

 

Data sheet issued by Apple Computer, Inc. dated July 16, 2003.

 

Item 9.            Information Being Furnished Under Item 12

 

In accordance with Securities and Exchange Commission Release No. 33-8216, the following information, which is intended to be furnished under Item 12, “Results of Operations and Financial Condition,” is instead being furnished under Item 9, “Regulation FD Disclosure.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

On July 16, 2003, Apple Computer, Inc. (“Apple”) issued a press release regarding Apple’s financial results for its third fiscal quarter ended June 28, 2003 and a related data sheet. A copy of Apple’s press release is attached hereto as Exhibit 99.1 and a copy of the related data sheet is attached hereto as Exhibit 99.2.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

APPLE COMPUTER, INC.

Date: July 16, 2003

 

 

 

By:

/s/ Fred D. Anderson

 

 

Fred D. Anderson
Executive Vice President and
Chief Financial Officer

 

3



 

EXHIBIT INDEX

 

Exhibit
Number

 

Description

 

 

 

99.1

 

Text of press release issued by Apple Computer, Inc. dated July 16, 2003.

 

 

 

99.2

 

Data sheet issued by Apple Computer, Inc. dated July 16, 2003.

 

4


Exhibit 99.1

 

Apple Reports Third Quarter Results

 

 

CUPERTINO, California—July 16, 2003—Apple® today announced financial results for its fiscal 2003 third quarter ended June 28, 2003. For the quarter, the Company posted a net profit of $19 million, or $.05 per diluted share. These results compare to a net profit of $32 million, or $.09 per diluted share, in the year-ago quarter. Revenues for the quarter were $1.545 billion, up 8 percent from the year-ago quarter and up 5 percent sequentially, and gross margins were 27.7 percent, up from 27.4 percent in the year-ago quarter. International sales accounted for 39 percent of the quarter’s revenues.

 

Apple shipped 771 thousand Macintosh® units during the quarter.

 

“This was a great new product quarter for Apple, starting with the iTunes Music Store and the new third-generation iPods, and ending with the announcement of the Power Mac G5 and the developer preview of Panther, the fourth major release of Mac OS X,” said Steve Jobs, Apple’s CEO.  “Customer response to our new products has been very strong, and this quarter we are focused on delivering Power Mac G5s beginning in August and finishing Panther for release later this year.”

 

“We are very proud to have exceeded our revenue target for the third quarter despite the difficult economic backdrop,” said Fred Anderson, Apple’s CFO. “We continue to be pleased with our working capital management and our ability to increase cash which totals over $4.5 billion.  Looking ahead to the fourth quarter of 2003, we expect an increase in revenues and a slight increase in earnings relative to the June quarter.”

 

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

 

Apple will provide live streaming of its Q3 2003 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 2:30 p.m. PT on Wednesday, July 16, 2003 at http://www.apple.com/quicktime/qtv/earningsq303/ and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at www.apple.com/quicktime.

 

This press release contains forward-looking statements about future revenues, profit, and products.  These statements involve risks and uncertainties and actual results may differ. Potential risks and uncertainties include continued competitive pressures in the marketplace; the effect competitive and economic factors and the Company’s reaction to them may have on consumer and business buying decisions with respect to the Company’s products; the ability of the Company to make timely delivery of new programs, products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; possible disruption in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; possible disruption in commercial activity as a result of Severe Acute Respiratory Syndrome (SARS); risks associated with the Company’s retail initiative including significant investment cost, uncertain consumer acceptance and potential impact on existing reseller relationships; the effect that the Company’s dependency on manufacturing and logistics services provided by third-parties may have on the quality or quantity of products manufactured; and the ability of the Company to successfully evolve its operating system and attract sufficient Macintosh developers. 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 2002 and the Company’s Form 10-Q for the quarter ended June 28, 2003 to be filed with the SEC.

 



 

Press Contact:

Lynn Fox

(408) 974-6209

lfox@apple.com

 

Investor Relations Contacts:

Nancy Paxton

(408) 974-5420

paxton1@apple.com

 

Joan Hoover

(408) 974-4570

hoover1@apple.com

 

NOTE TO EDITORS: For additional information visit Apple’s PR web site (www.apple.com/pr/) or call Apple’s Media Helpline at (408) 974-2042.

 

2



 

CONDENSED STATEMENTS OF OPERATIONS
(in millions, except share and per share amounts)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

June 28, 2003

 

June 29, 2002

 

June 28, 2003

 

June 29, 2002

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,545

 

$

1,429

 

$

4,492

 

$

4,299

 

Cost of sales

 

1,117

 

1,038

 

3,240

 

3,077

 

Gross margin

 

428

 

391

 

1,252

 

1,222

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

120

 

106

 

360

 

330

 

Selling, general, and administrative

 

299

 

272

 

898

 

831

 

Restructuring costs

 

 

 

26

 

24

 

Total operating expenses

 

419

 

378

 

1,284

 

1,185

 

Operating income (loss)

 

9

 

13

 

(32

)

37

 

Gains on non-current investments, net

 

2

 

 

2

 

23

 

Interest and other income, net

 

15

 

26

 

67

 

87

 

Total interest and other income, net

 

17

 

26

 

69

 

110

 

Income before provision for income taxes

 

26

 

39

 

37

 

147

 

Provision for income taxes

 

7

 

7

 

10

 

37

 

Income before accounting change

 

19

 

32

 

27

 

110

 

Cumulative effect of accounting change, net of income taxes of $1

 

 

 

(2

)

 

Net income

 

$

19

 

$

32

 

$

25

 

$

110

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share before accounting change:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

$

0.09

 

$

0.07

 

$

0.31

 

Diluted

 

$

0.05

 

$

0.09

 

$

0.07

 

$

0.30

 

Earnings per common share after accounting change:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

$

0.09

 

$

0.07

 

$

0.31

 

Diluted

 

$

0.05

 

$

0.09

 

$

0.07

 

$

0.30

 

Shares used in computing earnings per share (in thousands):

 

 

 

 

 

 

 

 

 

Basic

 

360,793

 

356,370

 

360,113

 

353,800

 

Diluted

 

363,777

 

366,882

 

362,421

 

363,438

 

 

3



 

CONSOLIDATED BALANCE SHEETS

(in millions, except share amounts)

 

 

 

June 28, 2003

 

September 28, 2002

 

 

 

 

 

 

 

ASSETS:

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

3,507

 

$

2,252

 

Short-term investments

 

1,038

 

2,085

 

Accounts receivable, less allowances of $49 and $51, respectively

 

568

 

565

 

Inventories

 

38

 

45

 

Deferred tax assets

 

176

 

166

 

Other current assets

 

219

 

275

 

Total current assets

 

5,546

 

5,388

 

Property, plant and equipment, net

 

639

 

621

 

Goodwill

 

85

 

85

 

Acquired intangible assets

 

27

 

34

 

Other assets

 

144

 

170

 

Total assets

 

$

6,441

 

$

6,298

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

880

 

$

911

 

Accrued expenses

 

838

 

747

 

Current debt

 

307

 

 

Total current liabilities

 

2,025

 

1,658

 

Long-term debt

 

 

316

 

Deferred tax liabilities and other non-current liabilities

 

218

 

229

 

Total liabilities

 

2,243

 

2,203

 

Commitments and contingencies

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Common stock, no par value; 900,000,000 shares authorized; 366,992,631 and 358,958,989 shares issued and outstanding, respectively

 

1,935

 

1,826

 

Deferred stock compensation

 

(68

)

(7

)

Retained earnings

 

2,350

 

2,325

 

Accumulated other comprehensive income (loss)

 

(19

)

(49

)

Total shareholders’ equity

 

4,198

 

4,095

 

Total liabilities and shareholders’ equity

 

$

6,441

 

$

6,298

 

 

4


 

Exhibit 99.2

 

 

Apple Computer, Inc.

Q3’03 Summary Data

 

 

 

Q2’03 Actual

 

Q3’02 Actual

 

Q3’03 Actual

 

Sequential
Change

 

Year/Year
Change

 

 

 

k
Units

 

$ m
Rev

 

k
Units

 

$ m
Rev

 

k
Units

 

$ m
Rev

 

Units

 

Rev

 

Units

 

Rev

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iMac (1)

 

256

 

$

302

 

378

 

$

424

 

287

 

$

301

 

12

%

0

%

-24

%

-29

%

iBook

 

133

 

151

 

169

 

217

 

190

 

196

 

43

%

30

%

12

%

-10

%

Power Mac G4(2)

 

156

 

293

 

167

 

285

 

133

 

234

 

-15

%

-20

%

-20

%

-18

%

PowerBook

 

166

 

353

 

94

 

234

 

161

 

363

 

-3

%

3

%

71

%

55

%

Peripherals & Other HW

 

 

216

 

 

148

 

 

285

 

 

32

%

 

93

%

Software & Other

 

 

160

 

 

121

 

 

166

 

 

4

%

 

37

%

Total Apple

 

711

 

$

1,475

 

808

 

$

1,429

 

771

 

$

1,545

 

8

%

5

%

-5

%

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2’03 Actual

 

Q3’02 Actual

 

Q3’03 Actual

 

Sequential Change

 

Year/Year
Change

 

 

 

k
Units

 

$ m
Rev

 

k
Units

 

$ m
Rev

 

k
Units

 

$ m
Rev

 

Units

 

Rev

 

Units

 

Rev

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

338

 

$

684

 

478

 

$

818

 

452

 

$

831

 

34

%

21

%

-5

%

2

%

Europe

 

180

 

338

 

160

 

275

 

144

 

297

 

-20

%

-12

%

-10

%

8

%

Japan

 

107

 

220

 

98

 

168

 

85

 

168

 

-21

%

-24

%

-13

%

0

%

Retail

 

42

 

135

 

20

 

63

 

40

 

145

 

-5

%

7

%

100

%

130

%

Other Segments (3)

 

44

 

98

 

52

 

105

 

50

 

104

 

14

%

6

%

-4

%

-1

%

Total Operating Segments

 

711

 

$

1,475

 

808

 

$

1,429

 

771

 

$

1,545

 

8

%

5

%

-5

%

8

%

 


(1)                                   Includes eMac product line.

 

(2)                                   Power Mac G4 figures include server sales.

 

(3)                                   Other Segments include Asia Pacific and FileMaker. Certain amounts in Q3’02 related to recent acquisitions and Internet Services have been reclassified from Other Segments to the Americas segment to conform to the Q3’03 presentation.