Apple
APPLE INC (Form: 8-K, Received: 10/18/2011 16:31:41)

 

 

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

October 18, 2011

Date of Report (date of earliest event reported)

 

 

APPLE INC.

(Exact name of Registrant as specified in its charter)

 

California   000-10030   94-2404110

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

1 Infinite Loop

Cupertino, California 95014

(Address of principal executive offices)

(Zip Code)

(408) 996-1010

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On October 18, 2011, Apple Inc. (“Apple”) issued a press release regarding Apple’s financial results for its fourth fiscal quarter ended September 24, 2011 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.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

The following exhibits are furnished herewith:

 

Exhibit

Number

  

Description

99.1    Text of press release issued by Apple Inc. on October 18, 2011.
99.2    Data sheet issued by Apple Inc. on October 18, 2011.


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 INC.

Date: October 18, 2011

    By:   /s/ Peter Oppenheimer
       

Peter Oppenheimer

Senior Vice President,

Chief Financial Officer


EXHIBIT INDEX

 

Exhibit

Number

  

Description

99.1    Text of press release issued by Apple Inc. on October 18, 2011.
99.2    Data sheet issued by Apple Inc. on October 18, 2011.

Exhibit 99.1

Apple Reports Fourth Quarter Results

All-Time Record Mac and iPad Sales

Highest September Quarter Revenue and Earnings Ever

CUPERTINO, California—October 18, 2011—Apple ® today announced financial results for its fiscal 2011 fourth quarter ended September 24, 2011. The Company posted quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion, or $7.05 per diluted share. These results compare to revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share, in the year-ago quarter. Gross margin was 40.3 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.

The Company sold 17.07 million iPhones in the quarter, representing 21 percent unit growth over the year-ago quarter. Apple sold 11.12 million iPads during the quarter, a 166 percent unit increase over the year-ago quarter. The Company sold 4.89 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter. Apple sold 6.62 million iPods, a 27 percent unit decline from the year-ago quarter.

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”

“We are extremely pleased with our record September quarter revenue and earnings and with cash generation of $5.4 billion during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2012, which will span 14 weeks rather than 13, we expect revenue of about $37 billion and we expect diluted earnings per share of about $9.30.”


Apple will provide live streaming of its Q4 2011 financial results conference call beginning at 2:00 p.m. PDT on October 18, 2011 at www.apple.com/quicktime/qtv/earningsq411. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those 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 without limitation 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; continued competitive pressures in the marketplace; 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 introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; 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; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 25, 2010, its Forms 10-Q for the quarters ended December 25, 2010; March 26, 2011; and June 25, 2011; and its Form 10-K for the fiscal year ended September 24, 2011 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 designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.

Press Contact:

Steve Dowling

Apple

dowling@apple.com

(408) 974-1896

Investor Relations Contacts:

Nancy Paxton

Apple

paxton1@apple.com

(408) 974-5420

Joan Hoover

Apple

hoover1@apple.com

(408) 974-4570

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.

© 2011 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except number of shares which are reflected in thousands and per share amounts)

 

September 30, September 30, September 30, September 30,
     Three Months Ended      Twelve Months Ended  
     September 24,
2011
     September 25,
2010
     September 24,
2011
     September 25,
2010
 

Net sales

   $ 28,270       $ 20,343       $ 108,249       $ 65,225   

Cost of sales (1)

     16,890         12,831         64,431         39,541   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross margin

     11,380         7,512         43,818         25,684   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses:

           

Research and development (1)

     645         494         2,429         1,782   

Selling, general and administrative (1)

     2,025         1,571         7,599         5,517   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     2,670         2,065         10,028         7,299   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     8,710         5,447         33,790         18,385   

Other income and expense

     81         14         415         155   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before provision for income taxes

     8,791         5,461         34,205         18,540   

Provision for income taxes

     2,168         1,153         8,283         4,527   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 6,623       $ 4,308       $ 25,922       $ 14,013   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per common share:

           

Basic

   $ 7.13       $ 4.71       $ 28.05       $ 15.41   

Diluted

   $ 7.05       $ 4.64       $ 27.68       $ 15.15   

Shares used in computing earnings per share:

           

Basic

     928,280         914,555         924,258         909,461   

Diluted

     939,517         928,825         936,645         924,712   
(1)  Includes share-based compensation expense as follows:   

Cost of sales

   $ 45       $ 39       $ 200       $ 151   

Research and development

   $ 114       $ 83       $ 450       $ 323   

Selling, general and administrative

   $ 139       $ 102       $ 518       $ 405   


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares which are reflected in thousands)

 

September 30, September 30,
     September 24,
2011
     September 25,
2010
 
ASSETS:      

Current assets:

     

Cash and cash equivalents

   $ 9,815       $ 11,261   

Short-term marketable securities

     16,137         14,359   

Accounts receivable, less allowances of $53 and $55, respectively

     5,369         5,510   

Inventories

     776         1,051   

Deferred tax assets

     2,014         1,636   

Vendor non-trade receivables

     6,348         4,414   

Other current assets

     4,529         3,447   
  

 

 

    

 

 

 

Total current assets

     44,988         41,678   

Long-term marketable securities

     55,618         25,391   

Property, plant and equipment, net

     7,777         4,768   

Goodwill

     896         741   

Acquired intangible assets, net

     3,536         342   

Other assets

     3,556         2,263   
  

 

 

    

 

 

 

Total assets

   $ 116,371       $ 75,183   
  

 

 

    

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY:      

Current liabilities:

     

Accounts payable

   $ 14,632       $ 12,015   

Accrued expenses

     9,247         5,723   

Deferred revenue

     4,091         2,984   
  

 

 

    

 

 

 

Total current liabilities

     27,970         20,722   

Deferred revenue – non-current

     1,686         1,139   

Other non-current liabilities

     10,100         5,531   
  

 

 

    

 

 

 

Total liabilities

     39,756         27,392   
  

 

 

    

 

 

 

Commitments and contingencies

     

Shareholders’ equity:

     

Common stock, no par value; 1,800,000 shares authorized; 929,277 and 915,970 shares issued and outstanding, respectively

     13,331         10,668   

Retained earnings

     62,841         37,169   

Accumulated other comprehensive income/(loss)

     443         (46
  

 

 

    

 

 

 

Total shareholders’ equity

     76,615         47,791   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 116,371       $ 75,183   
  

 

 

    

 

 

 

 


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 

September 30, September 30,
     Twelve Months Ended  
     September 24,
2011
    September 25,
2010
 

Cash and cash equivalents, beginning of the year

   $ 11,261      $ 5,263   
  

 

 

   

 

 

 

Operating activities:

    

Net income

     25,922        14,013   

Adjustments to reconcile net income to cash generated by operating activities:

    

Depreciation, amortization and accretion

     1,814        1,027   

Share-based compensation expense

     1,168        879   

Deferred income tax expense

     2,868        1,440   

Changes in operating assets and liabilities:

    

Accounts receivable, net

     143        (2,142

Inventories

     275        (596

Vendor non-trade receivables

     (1,934     (2,718

Other current and non-current assets

     (1,391     (1,610

Accounts payable

     2,515        6,307   

Deferred revenue

     1,654        1,217   

Other current and non-current liabilities

     4,495        778   
  

 

 

   

 

 

 

Cash generated by operating activities

     37,529        18,595   
  

 

 

   

 

 

 

Investing activities:

    

Purchases of marketable securities

     (102,317     (57,793

Proceeds from maturities of marketable securities

     20,437        24,930   

Proceeds from sales of marketable securities

     49,416        21,788   

Payments made in connection with business acquisitions, net of cash acquired

     (244     (638

Payments for acquisition of property, plant and equipment

     (4,260     (2,005

Payments for acquisition of intangible assets

     (3,192     (116

Other

     (259     (20
  

 

 

   

 

 

 

Cash used in investing activities

     (40,419     (13,854
  

 

 

   

 

 

 

Financing activities:

    

Proceeds from issuance of common stock

     831        912   

Excess tax benefits from equity awards

     1,133        751   

Taxes paid related to net share settlement of equity awards

     (520     (406
  

 

 

   

 

 

 

Cash generated by financing activities

     1,444        1,257   
  

 

 

   

 

 

 

(Decrease)/increase in cash and cash equivalents

     (1,446     5,998   
  

 

 

   

 

 

 

Cash and cash equivalents, end of the year

   $ 9,815      $ 11,261   
  

 

 

   

 

 

 

Supplemental cash flow disclosure:

    

Cash paid for income taxes, net

   $ 3,338      $ 2,697   

Exhibit 99.2

Apple Inc.

Q4 2011 Unaudited Summary Data

 

Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue
     Q3 2011      Q4 2010      Q4 2011      Sequential Change      Year/Year Change  
     CPU
Units K
     Revenue
$M
     CPU
Units K
     Revenue
$M
     CPU
Units K
     Revenue
$M
     CPU Units      Revenue      CPU Units      Revenue  

Operating Segments

                             

Americas

     1,487       $ 10,126         1,460       $ 7,186         1,716       $ 9,648         15%         - 5%         18%         34%   

Europe

     922         7,098         978         5,458         1,176         7,397         28%         4%         20%         36%   

Japan

     150         1,510         118         1,401         175         1,111         17%         - 26%         48%         - 21%   

Asia Pacific

     620         6,332         455         2,732         731         6,530         18%         3%         61%         139%   

Retail

     768         3,505         874         3,566         1,096         3,584         43%         2%         25%         1%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

             

Total Operating Segments

     3,947       $ 28,571         3,885       $ 20,343         4,894       $ 28,270         24%         - 1%         26%         39%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

             
            Revenue             Revenue             Revenue      Sequential Change      Year/Year Change  
     Units K      $M      Units K      $M      Units K      $M      Units      Revenue      Units      Revenue  

Product Summary

                             

Desktops (1)

     1,155       $ 1,580         1,242       $ 1,676         1,278       $ 1,687         11%         7%         3%         1%   

Portables (2)

     2,792         3,525         2,643         3,194         3,616         4,585         30%         30%         37%         44%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

             

Subtotal CPUs

     3,947         5,105         3,885         4,870         4,894         6,272         24%         23%         26%         29%   

iPod

     7,535         1,325         9,051         1,477         6,622         1,103         - 12%         - 17%         - 27%         - 25%   

Other Music Related Products and Services (3)

        1,571            1,243            1,678            7%            35%   

iPhone and Related Products and Services (4)

     20,338         13,311         14,102         8,822         17,073         10,980         - 16%         - 18%         21%         24%   

iPad and Related Products and Services (5)

     9,246         6,046         4,188         2,792         11,123         6,868         20%         14%         166%         146%   

Peripherals and Other Hardware (6)

        517            477            640            24%            34%   

Software, Service and Other Sales (7)

        696            662            729            5%            10%   
     

 

 

       

 

 

       

 

 

             

Total Apple

      $ 28,571          $ 20,343          $ 28,270            - 1%            39%   
     

 

 

       

 

 

       

 

 

             

 

(1) Includes iMac, Mac mini, Mac Pro and Xserve product lines.

 

(2) Includes MacBook, MacBook Air and MacBook Pro product lines.

 

(3) Includes sales from the iTunes Store, App Store, and iBookstore in addition to sales of iPod services and Apple-branded and third-party iPod accessories.

 

(4) Includes revenue recognized from iPhone sales, carrier agreements, services, and Apple-branded and third-party iPhone accessories.

 

(5) Includes revenue recognized from iPad sales, services, and Apple-branded and third-party iPad accessories.

 

(6) Includes sales of displays, wireless connectivity and networking solutions, and other hardware accessories.

 

(7) Includes sales from the Mac App Store in addition to sales of other Apple-branded and third-party Mac software and Mac and Internet services.

K = Units in thousands

$M = Amounts in millions