Apple Posts $546 Million Profit

Wednesday October 18, 2006 3:24 pm PDT by Arnold Kim

Apple released preliminary fourth quarter 2006 financial results today. These results may be subject to significant adjustments.

Apple posted revenue of $4.84 billion with a net quarterly profit of $546 million, or $.62 per diluted share. These results compare to revenue of $3.68 billion and net profit of $430 million, or $.50 per diluted share, in the year-ago quarter. Gross margin was 29.2 percent, up from 28.1 percent in the year-ago quarter. International sales accounted for 40 percent of the quarters revenue.

1,610,000 Macs and 8,729,000 iPods were shipped this quarter representing a 30 percent growth in Macs and 35 percent growth in iPods over the year-ago quarter.

This strong quarter caps an extraordinary year for Apple. Selling more than 39 million iPods and 5.3 million Macs while performing an incredibly complex architecture transition is something we are all very proud of, said Steve Jobs, Apples CEO. Looking forward, 2007 is likely to be one of the most exciting new product years in Apples history.

We are pleased to have finished the year with over $10 billion in cash and to have increased annual revenue by $11 billion in the last two years, said Peter Oppenheimer, Apples CFO. Looking ahead to the first fiscal quarter of 2007, we expect revenue of $6.0 to $6.2 billion and earnings per diluted share of $.70 to $.73.

Updates from Q/A
- 58% of company revenue from Macs
- 61% of Macs sold were laptops
- Q about Google/Youtube. A: Continue to believe that video will be big, not only on desktop but also iPod.
- Q on Mac Pro demand. A: Very positive reaction to Mac Pro. Still feel there is a delay in purchasing related to Creative Suite (Universal)
- Q about "new surprising in Leopard". A: Don't comment on specifics, but as we said in August we'll be shipping Leopard in Spring.
- Updates on International iTunes Stores? A: Currently in 21 countries. Movies to be international in 2007.
- Q on iTV. Any feedback thus far? Plan for # of units? A: No projections.
- Q about attracting new Studios. A: Plan to add more over time

Top Rated Comments

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plinden

70 months ago

I've hesitated posting this for tha past 50 minutes since I keep expecting it to show up on the front page (Edit: Ok, it's there - mods, lock or merge this please) - but here goes. Read some articles here:
http://finance.yahoo.com/q?s=aapl

Q3'06 Actual Q4'05 Actual Q4'06 Actual
CPU Rev CPU Rev CPU Rev
Operating Segments Units K M$ Units K M$ Units K M$
Americas 642 $2,188 636 $1,771 781 $2,297
Europe 301 899 259 779 342 987
Japan 79 258 71 224 62 286
Retail 216 715 202 663 323 936
Other Segments (1) 89 310 68 241 102 331
Total Operating Segments 1,327 $4,370 1,236 $3,678 1,610 $4,837

Sequential Change Year/Year Change
CPU CPU
Operating Segments Units Rev. Units Rev.
Americas 22% 5% 23% 30%
Europe 14% 10% 32% 27%
Japan - 22% 11% - 13% 28%
Retail 50% 31% 60% 41%
Other Segments (1) 15% 7% 50% 37%
Total Operating Segments 21% 11% 30% 32%

Units Rev Units Rev Units Rev
K M$ K M$ K M$
Product Summary
Desktops (2) 529 $705 602 $787 624 $869
Portables (3) 798 1,161 634 824 986 1,344

Subtotal CPUs 1,327 1,866 1,236 1,611 1,610 2,213
iPod 8,111 1,497 6,451 1,212 8,729 1,559
Other Music Related
Products and Services (4) NM 457 NM 265 NM 452
Peripherals and Other
Hardware NM 236 NM 296 NM 297
Software, Service and Other
Sales NM 314 NM 294 NM 316
Total Apple $4,370 $3,678 $4,837

Sequential Change Year/Year Change
Units Rev. Units Rev.
Product Summary
Desktops (2) 18% 23% 4% 10%
Portables (3) 24% 16% 56% 63%
Subtotal CPUs 21% 19% 30% 37%
iPod 8% 4% 35% 29%
Other Music Related Products and
Services (4) NM - 1% NM 71%
Peripherals and Other Hardware NM 26% NM 0%
Software, Service and Other Sales NM 1% NM 7%
Total Apple 11% 32%

(1) Other Segments include Asia Pacific and FileMaker.
(2) Includes iMac, eMac, Mac mini, Mac Pro, PowerMac, and Xserve product
lines.
(3) Includes MacBook, iBook, MacBook Pro and PowerBook product lines.
(4) Consists of iTunes Music Store sales, iPod services, and Apple-branded
and third-party iPod accessories.