Apple
APPLE COMPUTER INC (Form: 8-K, Received: 01/14/2004 16:32:13)

 

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

 

January 14, 2004

Date of Report (date of earliest event reported)

 

APPLE COMPUTER, INC.

(Exact name of Registrant as specified in its charter)

 

California

 

0-10030

 

94-2404110

(State or other jurisdiction of
incorporation or
organization)

 

(Commission File Number)

 

(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 January 14, 2004.

 

 

 

99.2

 

Data sheet issued by Apple Computer, Inc. dated January 14, 2004.

 

 

Item 12.         Results of Operations and Financial Condition

 

On January 14, 2004, Apple Computer, Inc. (Apple) issued a press release regarding Apple’s financial results for its first fiscal quarter ended December 27, 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.

 

The information contained in this Current Report 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.

 

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: January 14, 2004

 

 

 

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 January 14, 2004.

 

 

 

99.2

 

Data sheet issued by Apple Computer, Inc. dated January 14, 2004.

 

4


Exhibit 99.1

 

Apple Reports First Quarter Results

 

Revenue Increases 36 Percent Year-Over-Year

 

CUPERTINO, California—January 14, 2004—Apple® today announced financial results for its fiscal 2004 first quarter ended December 27, 2003. For the quarter, the Company posted a net profit of $63 million, or $.17 per diluted share. These results compare to a net loss of $8 million, or $.02 per diluted share, in the year-ago quarter. Revenue for the quarter reached a four-year high of $2.006 billion, up 36 percent from the year-ago quarter. Gross margin was 26.7 percent, down from 27.6 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter’s revenue.

 

The quarter’s results include an after-tax investment gain of $3 million which increased earnings per diluted share by $.01.

 

Apple shipped 829 thousand Macintosh® units during the quarter, up 12 percent from the year-ago quarter, as well as 733 thousand iPod® units, up 235 percent from the year-ago quarter.

 

“It was an outstanding quarter for Apple, with double-digit unit and revenue growth and over 730,000 iPods sold,” said Steve Jobs, Apple’s CEO. “We’re kicking off 2004 with strong momentum, especially for Mac OS X, which is now used by almost 40 percent of our installed base, iPod and the iTunes Music Store, which has a 70 percent share of the legal music download market.”

 

“We are very pleased to have exceeded our revenue and profit targets for the first quarter,” said Fred Anderson, Apple’s CFO. “Continued strong asset management enabled us to increase cash by $225 million to just under $4.8 billion. Looking ahead to the second quarter of fiscal 2004, we expect our third consecutive quarter of year-over-year double-digit growth in both revenue and earnings, with revenue of about $1.8 billion and earnings per diluted share of $.08 to $.10.”

 

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 Q1 2004 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. PST on Wednesday, January 14, 2004 at http://www.apple.com/quicktime/qtv/earningsq104/ 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 the Company’s estimated revenue and earnings for the second quarter of fiscal 2004. 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 major health concerns, such as 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; the Company’s reliance on the availability of third-party music content; 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 ended September 27, 2003 and the Company’s Form 10-Q for the quarter ended December 27, 2003. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

 

Press Contact:

Steve Dowling

(408) 974-1896

sdowling@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 website (www.apple.com/pr/), or call Apple’s Media Helpline at (408) 974-2042.

 

© 2004 Apple Computer, Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iPod and QuickTime are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

 



 

CONSOLIDATED BALANCE SHEETS

 

(In millions, except share amounts)

 

 

 

December 27,
2003

 

September 27,
2003

 

ASSETS:

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

3,724

 

$

3,396

 

Short-term investments

 

1,067

 

1,170

 

Accounts receivable, less allowances of $48 and $49, respectively

 

586

 

766

 

Inventories

 

89

 

56

 

Deferred tax assets

 

218

 

190

 

Other current assets

 

345

 

309

 

Total current assets

 

6,029

 

5,887

 

Property, plant, and equipment, net

 

684

 

669

 

Goodwill

 

85

 

85

 

Acquired intangible assets

 

22

 

24

 

Other assets

 

151

 

150

 

Total assets

 

$

6,971

 

$

6,815

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

1,085

 

$

1,154

 

Accrued expenses

 

995

 

899

 

Current debt

 

302

 

304

 

Total current liabilities

 

2,382

 

2,357

 

Deferred tax liabilities and other non-current liabilities

 

259

 

235

 

Total liabilities

 

2,641

 

2,592

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Common stock, no par value; 900,000,000 shares authorized; 368,760,946 and 366,726,584 shares issued and outstanding, respectively

 

1,960

 

1,926

 

Deferred stock compensation

 

(56

)

(62

)

Retained earnings

 

2,457

 

2,394

 

Accumulated other comprehensive income (loss)

 

(31

)

(35

)

Total shareholders’ equity

 

4,330

 

4,223

 

Total liabilities and shareholders’ equity

 

$

6,971

 

$

6,815

 

 



 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(In millions, except share and per share amounts)

 

 

 

THREE MONTHS ENDED

 

 

 

December 27,
2003

 

December 28,
2002

 

 

 

 

 

 

 

Net sales

 

$

2,006

 

$

1,472

 

Cost of sales

 

1,470

 

1,066

 

Gross margin

 

536

 

406

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Research and development

 

119

 

121

 

Selling, general, and administrative

 

343

 

299

 

Restructuring costs

 

 

23

 

Total operating expenses

 

462

 

443

 

Operating income (loss)

 

74

 

(37

)

 

 

 

 

 

 

Other income and expense:

 

 

 

 

 

Gain on non-current investments

 

4

 

 

Interest and other income, net

 

9

 

29

 

Total other income and expense

 

13

 

29

 

 

 

 

 

 

 

Income (loss) before provision for (benefit from) income taxes

 

87

 

(8

)

Provision for (benefit from) income taxes

 

24

 

(2

)

 

 

 

 

 

 

Income (loss) before accounting change

 

63

 

(6

)

 

 

 

 

 

 

Cumulative effect of accounting change, net

 

 

2

 

 

 

 

 

 

 

Net income (loss)

 

$

63

 

$

(8

)

 

 

 

 

 

 

Earnings (loss) per common share before accounting change:

 

 

 

 

 

Basic

 

$

0.17

 

$

(0.02

)

Diluted

 

$

0.17

 

$

(0.02

)

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

Basic

 

$

0.17

 

$

(0.02

)

Diluted

 

$

0.17

 

$

(0.02

)

 

 

 

 

 

 

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

 

 

 

 

 

Basic

 

362,450

 

359,057

 

Diluted

 

372,308

 

359,057

 

 


Exhibit 99.2

 

January 14, 2004

 

Apple Computer, Inc.

Q1’04 Summary Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4’03 Actual

 

Q1’03 Actual

 

Q1’04 Actual

 

Sequential Change

 

Year/Year Change

 

 

 

Units k

 

Rev $m

 

Units k

 

Rev $m

 

Units k

 

Rev $m

 

Units

 

Revenue

 

Units

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iMac (1)

 

253

 

$

279

 

298

 

$

356

 

227

 

$

251

 

-10

%

-10

%

-24

%

-29

%

iBook

 

137

 

154

 

186

 

216

 

201

 

221

 

47

%

44

%

8

%

2

%

Power Mac (2)

 

221

 

419

 

158

 

292

 

206

 

398

 

-7

%

-5

%

30

%

36

%

PowerBook

 

176

 

348

 

101

 

235

 

195

 

399

 

11

%

15

%

93

%

70

%

Subtotal CPUs

 

787

 

1,200

 

743

 

1,099

 

829

 

1,269

 

5

%

6

%

12

%

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iPod

 

336

 

121

 

219

 

81

 

733

 

256

 

118

%

112

%

235

%

216

%

Peripherals & Other HW

 

NM

 

217

 

NM

 

137

 

NM

 

243

 

NM

 

12

%

NM

 

77

%

Software & Other

 

NM

 

177

 

NM

 

155

 

NM

 

238

 

NM

 

34

%

NM

 

54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Apple

 

 

 

$

1,715

 

 

 

$

1,472

 

 

 

$

2,006

 

 

 

17

%

 

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sequential Change

 

Year/Year Change

 

 

 

CPU Units k

 

Rev $m

 

CPU Units k

 

Rev $m

 

CPU Units k

 

Rev $m

 

Units

 

Revenue

 

Units

 

Revenue

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

453

 

$

928

 

377

 

$

738

 

378

 

$

924

 

-17

%

0

%

0

%

25

%

Europe

 

158

 

323

 

202

 

351

 

240

 

519

 

52

%

61

%

19

%

48

%

Japan

 

76

 

171

 

71

 

139

 

77

 

157

 

1

%

-8

%

8

%

13

%

Retail

 

59

 

193

 

46

 

148

 

73

 

273

 

24

%

41

%

59

%

84

%

Other Segments (3)

 

41

 

100

 

47

 

96

 

61

 

133

 

49

%

33

%

30

%

39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Segments

 

787

 

$

1,715

 

743

 

$

1,472

 

829

 

$

2,006

 

5

%

17

%

12

%

36

%

 


(1)                Includes eMac product line.

(2)                Power Mac figures include server sales.

(3)                Other Segments include Asia Pacific and FileMaker.

 

NM:  Not Meaningful