Apple Reports Big Q3 Results and Even Bigger iPod Sales
Jul 19, 2006
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Apple (Cupertino, California, U.S.) posted revenue of U.S. $4.37 billion and net quarterly profit of $472 million, or $0.54 per diluted share, for its fiscal third quarter ended July 1, 2006. These results compare to revenue of $3.52 billion and net profit of $320 million, or $0.37 per diluted share, in the third quarter of fiscal 2005.
Gross margin was 30.3 percent, up from 29.7 percent in the year-ago quarter. International sales accounted for 39 percent of the quarter’s revenue.
Apple shipped 1,327,000 Macintosh® computers and 8,111,000 iPods during the quarter, representing 12 percent growth in Macs and 32 percent growth in iPods over the year-ago quarter.
“We’re thrilled with the growth of our Mac business, and especially that over 75 percent of the Macs sold during the quarter used Intel processors. This is the smoothest and most successful transition that any of us have ever experienced, “ said Apple CEO Steve Jobs. “In addition, iPod continued to earn a U.S. market share of over 75 percent and we are extremely excited about future iPod products in our pipeline.”
“We’re very pleased to report the second highest quarterly sales and earnings in Apple’s history, resulting in year-over-year revenue growth of 24 percent and earnings growth of 48 percent,” said APPLE Chief Financial Officer Peter Oppenheimer. “Looking ahead to the fourth quarter of fiscal 2006, we expect revenue of about $4.5 to $4.6 billion. We expect GAAP earnings per diluted share of about $0.46 to $0.48, including an estimated $.03 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $0.49 to $0.51.”
Irregularities Not Expected to Change Q3 Results
To Apple previously announced that an internal investigation discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001. A special committee of Apple’s outside directors has hired independent counsel to perform an investigation and the company informed the SEC.
Based on irregularities identified to date, Apple management does not anticipate material adjustment to financial results included in the third quarter earnings release.
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