Apple Posts $546 Million Profit
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