Apple Inc.
APPLE INC (Form: 8-K, Received: 04/24/2012 16:33:01)

 

 

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

April 24, 2012

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 April 24, 2012, Apple Inc. (“Apple”) issued a press release regarding Apple’s financial results for its second fiscal quarter ended March 31, 2012 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 April 24, 2012.
99.2    Data sheet issued by Apple Inc. on April 24, 2012.


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: April 24, 2012     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 April 24, 2012.
99.2    Data sheet issued by Apple Inc. on April 24, 2012.

Exhibit 99.1

Apple Reports Second Quarter Results

Record March Quarter Sales of iPhones, iPads and Macs

Net Profit Increases 94% Year-over-Year

CUPERTINO, California—April 24, 2012—Apple ® today announced financial results for its fiscal 2012 second quarter ended March 31, 2012. The Company posted quarterly revenue of $39.2 billion and quarterly net profit of $11.6 billion, or $12.30 per diluted share. These results compare to revenue of $24.7 billion and net profit of $6.0 billion, or $6.40 per diluted share, in the year-ago quarter. Gross margin was 47.4 percent compared to 41.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

The Company sold 35.1 million iPhones in the quarter, representing 88 percent unit growth over the year-ago quarter. Apple sold 11.8 million iPads during the quarter, a 151 percent unit increase over the year-ago quarter. The Company sold 4 million Macs during the quarter, a 7 percent unit increase over the year-ago quarter. Apple sold 7.7 million iPods, a 15 percent unit decline from the year-ago quarter.

“We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” said Tim Cook, Apple’s CEO. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.”

“Our record March quarter results drove $14 billion in cash flow from operations,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $8.68.”

Apple will provide live streaming of its Q2 2012 financial results conference call beginning at 2:00 p.m. PDT on April 24, 2012 at www.apple.com/quicktime/qtv/earningsq212. 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 diluted 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 24, 2011, its Form 10-Q for the fiscal quarter ended December 31, 2011, and its Form 10-Q for the fiscal quarter ended March 31, 2012 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 is defining the future of mobile media and computing devices with iPad.


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.

© 2012 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      Six Months Ended  
     March 31,
2012
     March 26,
2011
     March 31,
2012
     March 26,
2011
 

Net sales

   $ 39,186       $ 24,667       $ 85,519       $ 51,408   

Cost of sales (1)

     20,622         14,449         46,252         30,892   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross margin

     18,564         10,218         39,267         20,516   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses:

           

Research and development (1)

     841         581         1,599         1,156   

Selling, general and administrative (1)

     2,339         1,763         4,944         3,659   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     3,180         2,344         6,543         4,815   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     15,384         7,874         32,724         15,701   

Other income and expense

     148         26         285         162   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before provision for income taxes

     15,532         7,900         33,009         15,863   

Provision for income taxes

     3,910         1,913         8,323         3,872   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 11,622       $ 5,987       $ 24,686       $ 11,991   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per common share:

           

Basic

   $ 12.45       $ 6.49       $ 26.48       $ 13.02   

Diluted

   $ 12.30       $ 6.40       $ 26.17       $ 12.83   

Shares used in computing earnings per share:

           

Basic

     933,582         923,196         932,265         921,245   

Diluted

     944,893         935,944         943,185         934,549   

(1)  Includes stock-based compensation expense as follows:

           

Cost of sales

   $ 63       $ 51       $ 126       $ 103   

Research and development

   $ 168       $ 104       $ 328       $ 217   

Selling, general and administrative

   $ 193       $ 132       $ 390       $ 266   


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

September 30, September 30,
     March 31,
2012
     September 24,
2011
 

ASSETS:

     

Current assets:

     

Cash and cash equivalents

   $ 10,121       $ 9,815   

Short-term marketable securities

     18,417         16,137   

Accounts receivable, less allowances of $83 and $53, respectively

     7,042         5,369   

Inventories

     1,102         776   

Deferred tax assets

     2,253         2,014   

Vendor non-trade receivables

     6,727         6,348   

Other current assets

     5,050         4,529   
  

 

 

    

 

 

 

Total current assets

     50,712         44,988   

Long-term marketable securities

     81,638         55,618   

Property, plant and equipment, net

     8,847         7,777   

Goodwill

     1,141         896   

Acquired intangible assets, net

     3,604         3,536   

Other assets

     4,992         3,556   
  

 

 

    

 

 

 

Total assets

   $ 150,934       $ 116,371   
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

     

Current liabilities:

     

Accounts payable

   $ 17,011       $ 14,632   

Accrued expenses

     9,778         9,247   

Deferred revenue

     5,247         4,091   
  

 

 

    

 

 

 

Total current liabilities

     32,036         27,970   

Deferred revenue – non-current

     2,446         1,686   

Other non-current liabilities

     13,954         10,100   
  

 

 

    

 

 

 

Total liabilities

     48,436         39,756   
  

 

 

    

 

 

 

Commitments and contingencies

     

Shareholders’ equity:

     

Common stock, no par value; 1,800,000 shares authorized; 934,982 and 929,277 shares issued and outstanding, respectively

     14,850         13,331   

Retained earnings

     87,124         62,841   

Accumulated other comprehensive income

     524         443   
  

 

 

    

 

 

 

Total shareholders’ equity

     102,498         76,615   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 150,934       $ 116,371   
  

 

 

    

 

 

 

 


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 

September 30, September 30,
     Six Months Ended  
     March 31,
2012
    March 26,
2011
 

Cash and cash equivalents, beginning of the period

   $ 9,815      $ 11,261   
  

 

 

   

 

 

 

Operating activities:

    

Net income

     24,686        11,991   

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

    

Depreciation, amortization and accretion

     1,461        790   

Share-based compensation expense

     844        586   

Deferred income tax expense

     2,915        1,563   

Changes in operating assets and liabilities:

    

Accounts receivable, net

     (1,663     (288

Inventories

     (326     121   

Vendor non-trade receivables

     (379     (883

Other current and non-current assets

     (1,510     (1,886

Accounts payable

     2,809        1,626   

Deferred revenue

     1,916        698   

Other current and non-current liabilities

     778        1,674   
  

 

 

   

 

 

 

Cash generated by operating activities

     31,531        15,992   
  

 

 

   

 

 

 

Investing activities:

    

Purchases of marketable securities

     (85,022     (42,260

Proceeds from maturities of marketable securities

     7,702        10,211   

Proceeds from sales of marketable securities

     49,052        21,705   

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

     (350     0   

Payments for acquisition of property, plant and equipment

     (2,778     (1,838

Payments for acquisition of intangible assets

     (160     (81

Other

     (48     12   
  

 

 

   

 

 

 

Cash used in investing activities

     (31,604     (12,251
  

 

 

   

 

 

 

Financing activities:

    

Proceeds from issuance of common stock

     377        494   

Excess tax benefits from equity awards

     636        740   

Taxes paid related to net share settlement of equity awards

     (634     (258
  

 

 

   

 

 

 

Cash generated by financing activities

     379        976   
  

 

 

   

 

 

 

Increase in cash and cash equivalents

     306        4,717   
  

 

 

   

 

 

 

Cash and cash equivalents, end of the period

   $ 10,121      $ 15,978   
  

 

 

   

 

 

 

Supplemental cash flow disclosure:

    

Cash paid for income taxes, net

   $ 4,835      $ 1,913   

Exhibit 99.2

Apple Inc.

Q2 2012 Unaudited Summary Data

(Units in thousands, Revenue in millions)

 

Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue
     Q1 2012      Q2 2011      Q2 2012      Sequential Change      Year/Year Change  
     Mac Units      Revenue      Mac Units      Revenue      Mac Units      Revenue      Mac Units      Revenue      Mac Units      Revenue  

Operating Segments

                             

Americas

     1,612       $ 17,714         1,217       $ 9,323         1,214       $ 13,182         - 25%         - 26%         0%         41%   

Europe

     1,482         11,256         995         6,027         1,048         8,807         - 29%         - 22%         5%         46%   

Japan

     184         3,550         155         1,383         158         2,645         - 14%         - 25%         2%         91%   

Asia Pacific

     814         7,697         596         4,743         771         10,153         - 5%         32%         29%         114%   

Retail

     1,106         6,116         797         3,191         826         4,399         - 25%         - 28%         4%         38%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

             

Total Operating Segments

     5,198       $ 46,333         3,760       $ 24,667         4,017       $ 39,186         - 23%         - 15%         7%         59%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

             
                                               Sequential Change      Year/Year Change  
     Units      Revenue      Units      Revenue      Units      Revenue      Units      Revenue      Units      Revenue  

Product Summary

                             

Mac Desktops (1)(9)

     1,479       $ 1,936         1,009       $ 1,441         1,199       $ 1,563         - 19%         - 19%         19%         8%   

Mac Portables (2)(9)

     3,719         4,662         2,751         3,535         2,818         3,510         - 24%         - 25%         2%         - 1%   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

             

Subtotal Mac

     5,198         6,598         3,760         4,976         4,017         5,073         - 23%         - 23%         7%         2%   

iPod (3)(9)

     15,397         2,528         9,017         1,600         7,673         1,207         - 50%         - 52%         - 15%         - 25%   

Other Music Related Products and Services (4)

        2,027            1,634            2,151            6%            32%   

iPhone and Related Products and Services (5)(9)

     37,044         24,417         18,647         12,298         35,064         22,690         - 5%         - 7%         88%         85%   

iPad and Related Products and Services (6)(9)

     15,434         9,153         4,694         2,836         11,798         6,590         - 24%         - 28%         151%         132%   

Peripherals and Other Hardware (7)

        766            580            643            - 16%            11%   

Software, Service and Other Sales (8)

        844            743            832            - 1%            12%   
     

 

 

       

 

 

       

 

 

             

Total Apple

      $ 46,333          $ 24,667          $ 39,186            - 15%            59%   
     

 

 

       

 

 

       

 

 

             

 

(1) Includes revenue from iMac, Mac mini and Mac Pro sales.

 

(2) Includes revenue from MacBook, MacBook Air and MacBook Pro sales.

 

(3) Includes revenue from iPod sales.

 

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

 

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

 

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

 

(7) Includes revenue from sales of displays, networking products, and other hardware.

 

(8) Includes revenue from sales of Apple-branded and third-party Mac software, and services.

 

(9) Includes amortization of related revenue deferred for non-software services and embedded software upgrade rights.