Apple Reports Second Quarter Profit of US$40 Million

Apple today announced financial results for its fiscal 2002 second quarter ended March 30th, 2002. For the quarter, the Company posted a net profit of US$40 million (£27.7m*), or $0.11 per diluted share. These results compare to a net profit of US$43 million (£29.8m*), or $0.12 per diluted share, in the year ago quarter. Revenues for the quarter were US$1.5 billion (£1.04bn*), up 4 percent from the year ago quarter, and gross margins were 27.4 percent, compared to 26.9 percent in the year ago quarter. International sales accounted for 45 percent of the quarter's revenues.

Apple shipped 813,000 Macintosh units during the quarter, up 8 percent from the year ago quarter.

“We've experienced incredible demand for the new flat-screen iMac andshipped 220,000 this quarter. Feedback from customers using them has beenoff the charts — we've clearly got a winner here”, said Steve Jobs, Apple's CEO. “Looking forward, we're making great progress on our transition to Mac OS X, we have some remarkable new products in development, and we plan to open an additional 20 Apple retail stores by the end of this calendar year”.

“We're pleased to have delivered solid results while executing a challenging product transition”, said Fred Anderson, Apple's CFO. “Our balance sheet remains very strong with $4.3 billion in cash. We are targeting June quarter revenues to be up sequentially to about $1.6 billion and EPS to be flat to up slightly compared with the March quarter”.

Consolidated Financial Statements and a Q2 FY 2002 Data Summary can bedownloaded from www.apple.com/pr/library/2002/apr/17earnings.html.

Except for the historical information contained herein, the statements inthis press release are forward-looking statements that involve risks anduncertainties. Potential risks and uncertainties include, withoutlimitation, continued competitive pressures in the marketplace; the effectcompetitive 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 programmes, products and successful technological innovations to themarketplace; the continued availability of certain components and servicesessential to the Company's business currently obtained by the Company fromsole or limited sources; possible disruption in commercial activities causedby terrorist activity and armed conflict, such as changes in logistics andsecurity arrangements, and reduced end-user purchases relative toexpectations; risks associated with the Company's retail initiativeincluding significant investment cost, uncertain consumer acceptance andpotential impact on existing reseller relationships; the effect that theCompany's dependency on manufacturing and logistics services provided bythird-parties may have on the quality or quantity of products manufactured;and the ability of the Company to successfully evolve its operating systemand attract sufficient Macintosh developers. More information on potentialfactors that could affect the Company's financial results is included fromtime to time in the Company's public reports filed with the SEC, includingthe Company's Form 10-K for the 2001 fiscal year, and the Company's Form 10-Q for the quarter ended March 30th, 2002, to be filed with the SEC.

* Figures based on exchange rates at the time of going to press; exchange rates are subject to fluctuation.

Press Contacts:
Apple UK and Ireland Public Relations
Email: media.uk@apple.com
Phone: (020) 8218 1440