Apple Inc.
APPLE INC (Form: 8-K, Received: 04/23/2013 16:31:58)

 

 

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 23, 2013

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 23, 2013, Apple Inc. (“Apple”) issued a press release regarding Apple’s financial results for its second fiscal quarter ended March 30, 2013 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 23, 2013.
99.2    Data sheet issued by Apple Inc. on April 23, 2013.


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 23, 2013     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 23, 2013.
99.2    Data sheet issued by Apple Inc. on April 23, 2013.

Exhibit 99.1

Apple Reports Second Quarter Results

37.4 Million iPhones Sold; 19.5 Million iPads Sold

CUPERTINO, California—April 23, 2013—Apple ® today announced financial results for its fiscal 2013 second quarter ended March 30, 2013. The Company posted quarterly revenue of $43.6 billion and quarterly net profit of $9.5 billion, or $10.09 per diluted share. These results compare to revenue of $39.2 billion and net profit of $11.6 billion, or $12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5 percent compared to 47.4 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

The Company sold 37.4 million iPhones in the quarter, compared to 35.1 million in the year-ago quarter. Apple also sold 19.5 million iPads during the quarter, compared to 11.8 million in the year-ago quarter. The Company sold just under 4 million Macs, compared to 4 million in the year-ago quarter.

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”

“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2013 third quarter:

 

 

revenue between $33.5 billion and $35.5 billion

 

 

gross margin between 36 percent and 37 percent

 

 

operating expenses between $3.85 billion and $3.95 billion

 

 

other income/(expense) of $300 million

 

 

tax rate of 26%

Apple will provide live streaming of its Q2 2013 financial results conference call beginning at 2:00 p.m. PDT on April 23, 2013 at www.apple.com/quicktime/qtv/earningsq213. 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, gross margin, operating expenses, other income/(expense), and tax rate. 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 29, 2012, its Form 10-Q for the quarter ended December 29, 2012, and its Form 10-Q for the quarter ended March 30, 2013 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.

© 2013 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)

 

                                                                                                   
     Three Months Ended      Six Months Ended  
     March 30,
2013
     March 31,
2012
     March 30,
2013
     March 31,
2012
 

Net sales

   $ 43,603       $ 39,186       $ 98,115       $ 85,519   

Cost of sales (1)

     27,254         20,622         60,706         46,252   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross margin

     16,349         18,564         37,409         39,267   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses:

           

Research and development (1)

     1,119         841         2,129         1,599   

Selling, general and administrative (1)

     2,672         2,339         5,512         4,944   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     3,791         3,180         7,641         6,543   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     12,558         15,384         29,768         32,724   

Other income/(expense), net

     347         148         809         285   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before provision for income taxes

     12,905         15,532         30,577         33,009   

Provision for income taxes

     3,358         3,910         7,952         8,323   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 9,547       $ 11,622       $ 22,625       $ 24,686   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share:

           

Basic

   $ 10.16       $ 12.45       $ 24.09       $ 26.48   

Diluted

   $ 10.09       $ 12.30       $ 23.90       $ 26.17   

Shares used in computing earnings per share:

           

Basic

     939,629         933,582         939,273         932,265   

Diluted

     946,035         944,893         946,626         943,185   

Cash dividends declared per common share

   $ 2.65       $ 0       $ 5.30       $ 0   
(1)  Includes share-based compensation expense as follows:   

Cost of sales

   $ 87       $ 63       $ 172       $ 126   

Research and development

   $ 239       $ 168       $ 463       $ 328   

Selling, general and administrative

   $ 249       $ 193       $ 485       $ 390   


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

                                                 
     March 30,
2013
     September 29,
2012
 
ASSETS:      

Current assets:

     

Cash and cash equivalents

   $ 12,053       $ 10,746   

Short-term marketable securities

     27,084         18,383   

Accounts receivable, less allowances of $99 and $98, respectively

     7,084         10,930   

Inventories

     1,245         791   

Deferred tax assets

     3,242         2,583   

Vendor non-trade receivables

     6,252         7,762   

Other current assets

     6,377         6,458   
  

 

 

    

 

 

 

Total current assets

     63,337         57,653   

Long-term marketable securities

     105,550         92,122   

Property, plant and equipment, net

     15,026         15,452   

Goodwill

     1,400         1,135   

Acquired intangible assets, net

     4,136         4,224   

Other assets

     5,294         5,478   
  

 

 

    

 

 

 

Total assets

   $ 194,743       $ 176,064   
  

 

 

    

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY:      

Current liabilities:

     

Accounts payable

   $ 14,912       $ 21,175   

Accrued expenses

     13,331         11,414   

Deferred revenue

     7,265         5,953   
  

 

 

    

 

 

 

Total current liabilities

     35,508         38,542   

Deferred revenue – non-current

     2,877         2,648   

Other non-current liabilities

     20,868         16,664   
  

 

 

    

 

 

 

Total liabilities

     59,253         57,854   
  

 

 

    

 

 

 

Commitments and contingencies

     

Shareholders’ equity:

     

Common stock, no par value; 1,800,000 shares authorized; 940,094 and 939,208 shares issued and outstanding, respectively

     17,954         16,422   

Retained earnings

     116,572         101,289   

Accumulated other comprehensive income

     964         499   
  

 

 

    

 

 

 

Total shareholders’ equity

     135,490         118,210   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 194,743       $ 176,064   
  

 

 

    

 

 

 


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 

                                                 
     Six Months Ended  
     March 30,
2013
    March 31,
2012
 

Cash and cash equivalents, beginning of the period

   $ 10,746      $ 9,815   
  

 

 

   

 

 

 

Operating activities:

    

Net income

     22,625        24,686   

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

    

Depreciation and amortization

     3,280        1,461   

Share-based compensation expense

     1,120        844   

Deferred income tax expense

     1,957        2,915   

Changes in operating assets and liabilities:

    

Accounts receivable, net

     3,846        (1,663

Inventories

     (454     (326

Vendor non-trade receivables

     1,510        (379

Other current and non-current assets

     1,269        (1,510

Accounts payable

     (4,422     2,809   

Deferred revenue

     1,541        1,916   

Other current and non-current liabilities

     3,658        778   
  

 

 

   

 

 

 

Cash generated by operating activities

     35,930        31,531   
  

 

 

   

 

 

 

Investing activities:

    

Purchases of marketable securities

     (81,163     (85,022

Proceeds from maturities of marketable securities

     9,243        7,702   

Proceeds from sales of marketable securities

     49,188        49,052   

Payments made in connection with business acquisitions, net

     (299     (350

Payments for acquisition of property, plant and equipment

     (4,325     (2,778

Payments for acquisition of intangible assets

     (429     (160

Other

     (93     (48
  

 

 

   

 

 

 

Cash used in investing activities

     (27,878     (31,604
  

 

 

   

 

 

 

Financing activities:

    

Proceeds from issuance of common stock

     275        377   

Excess tax benefits from equity awards

     502        636   

Dividends and dividend equivalent rights paid

     (4,984     0   

Repurchase of common stock

     (1,950     0   

Taxes paid related to net share settlement of equity awards

     (588     (634
  

 

 

   

 

 

 

Cash (used in)/generated by financing activities

     (6,745     379   
  

 

 

   

 

 

 

Increase in cash and cash equivalents

     1,307        306   
  

 

 

   

 

 

 

Cash and cash equivalents, end of the period

   $ 12,053      $ 10,121   
  

 

 

   

 

 

 

Supplemental cash flow disclosure:

    

Cash paid for income taxes, net

   $ 4,258      $ 4,835   

 

Exhibit 99.2

Apple Inc.

Q2 2013 Unaudited Summary Data

(Units in thousands, Revenue in millions)

 

                                                                                                                                                                                             
    Q2’13     Q1’13     Q2’12     Sequential Change     Year/Year Change  
          Revenue           Revenue           Revenue           Revenue           Revenue  

Operating Segments

                     

Americas

    $ 14,052        $ 20,341        $ 13,182          - 31%          7%   

Europe

      9,800          12,464          8,807          - 21%          11%   

Greater China (a)

      8,213          6,830          7,637          20%          8%   

Japan

      3,135          4,443          2,645          - 29%          19%   

Rest of Asia Pacific

      3,162          3,993          2,516          - 21%          26%   

Retail

      5,241          6,441          4,399          - 19%          19%   
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Apple

    $ 43,603        $ 54,512        $ 39,186          - 20%          11%   
   

 

 

     

 

 

     

 

 

         
                               
    Q2’13     Q1’13     Q2’12     Sequential Change     Year/Year Change  
    Units     Revenue     Units     Revenue     Units     Revenue     Units     Revenue     Units     Revenue  

Product Summary

                     

iPhone (b)

    37,430      $ 22,955        47,789      $ 30,660        35,064      $ 22,276        - 22%        - 25%        7%        3%   

iPad (b)

    19,477        8,746        22,860        10,674        11,798        6,264        - 15%        - 18%        65%        40%   

Mac (b)

    3,952        5,447        4,061        5,519        4,017        5,073        - 3%        - 1%        - 2%        7%   

iPod (b)

    5,633        962        12,679        2,143        7,673        1,207        - 56%        - 55%        - 27%        - 20%   

iTunes/Software/Services (c)

      4,114          3,687          3,171          12%          30%   

Accessories (d)

      1,379          1,829          1,195          - 25%          15%   
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Apple

    $ 43,603        $ 54,512        $ 39,186          - 20%          11%   
   

 

 

     

 

 

     

 

 

         
         

 

 

                             

 

(a) Greater China includes China, Hong Kong and Taiwan.

 

(b) Includes deferrals and amortization of related non-software services and software upgrade rights.

 

(c) Includes revenue from sales on the iTunes Store, the App Store, the Mac App Store, and the iBookstore, and revenue from sales of AppleCare, licensing and other services.

 

(d) Includes sales of hardware peripherals and Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod.