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www.sererra.com
Apple® today announced financial results for its 13-week fiscal 2013
first quarter ended December 29, 2012. The Company posted record
quarterly revenue of $54.5 billion and record quarterly net profit of
$13.1 billion, or $13.81 per diluted share. These results compare to
revenue of $46.3 billion and net profit of $13.1 billion, or $13.87 per
diluted share, in the 14-week year-ago quarter. Gross margin was 38.6
percent compared to 44.7 percent in the year-ago quarter. International
sales accounted for 61 percent of the quarter’s revenue.
Average weekly revenue was $4.2 billion in the quarter compared to $3.3
billion in the year-ago quarter.
The Company sold a record 47.8 million iPhones in the quarter, compared
to 37 million in the year-ago quarter. Apple also sold a record 22.9
million iPads during the quarter, compared to 15.4 million in the
year-ago quarter. The Company sold 4.1 million Macs, compared to 5.2
million in the year-ago quarter. Apple sold 12.7 million iPods in the
quarter, compared to 15.4 million in the year-ago quarter.
Apple’s Board of Directors has declared a cash dividend of $2.65 per
share of the Company’s common stock. The dividend is payable on February
14, 2013, to shareholders of record as of the close of business on
February 11, 2013.
“We’re thrilled with record revenue of over $54 billion and sales of
over 75 million iOS devices in a single quarter,” said Tim Cook, Apple’s
CEO. “We’re very confident in our product pipeline as we continue to
focus on innovation and making the best products in the world.”
“We’re pleased to have generated over $23 billion in cash flow from
operations during the quarter,” said Peter Oppenheimer, Apple’s CFO. “We
established new all-time quarterly records for iPhone and iPad sales,
significantly broadened our ecosystem, and generated Apple’s highest
quarterly revenue ever.”
Apple is providing the following guidance for its fiscal 2013 second
quarter:
• revenue between $41 billion and $43 billion
• gross margin between 37.5 percent and 38.5 percent
• operating expenses between $3.8 billion and $3.9 billion
• other income/(expense) of $350 million
• tax rate of 26%
Apple will provide live streaming of its Q1 2013 financial results
conference call beginning at 2:00 p.m. PST on January 23, 2013 at www.apple.com/quicktime/qtv/earningsq113.
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, and its Form 10-Q for the
quarter ended December 29, 2012 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.
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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in
thousands and per share amounts)
Three Months Ended
December 29, 2012
December 31, 2011
Net sales
$
54,512
$
46,333
Cost of sales (1)
33,452
25,630
Gross margin
21,060
20,703
Operating expenses:
Research and development (1)
1,010
758
Selling, general and administrative (1)
2,840
2,605
Total operating expenses
3,850
3,363
Operating income
17,210
17,340
Other income/(expense), net
462
137
Income before provision for income taxes
17,672
17,477
Provision for income taxes
4,594
4,413
Net income
$
13,078
$
13,064
Earnings per share:
Basic
$
13.93
$
14.03
Diluted
$
13.81
$
13.87
Shares used in computing earnings per share:
Basic
938,916
931,041
Diluted
947,217
941,572
Cash dividends declared per common share
$
2.65
$
0
(1) Includes share-based compensation expense as follows:
Cost of sales
$
85
$
63
Research and development
$
224
$
160
Selling, general and administrative
$
236
$
197
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in
thousands)
December 29, 2012
September 29, 2012
ASSETS:
Current assets:
Cash and cash equivalents
$
16,154
$
10,746
Short-term marketable securities
23,666
18,383
Accounts receivable, less allowances of $119 and $98, respectively
11,598
10,930
Inventories
1,455
791
Deferred tax assets
2,895
2,583
Vendor non-trade receivables
9,936
7,762
Other current assets
6,644
6,458
Total current assets
72,348
57,653
Long-term marketable securities
97,292
92,122
Property, plant and equipment, net
15,422
15,452
Goodwill
1,381
1,135
Acquired intangible assets, net
4,462
4,224
Other assets
5,183
5,478
Total assets
$
196,088
$
176,064
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable
$
26,398
$
21,175
Accrued expenses
13,207
11,414
Deferred revenue
7,274
5,953
Total current liabilities
46,879
38,542
Deferred revenue – non-current
2,938
2,648
Other non-current liabilities
18,925
16,664
Total liabilities
68,742
57,854
Commitments and contingencies
Shareholders' equity:
Common stock, no par value; 1,800,000 shares authorized; 938,973 and
939,208 shares issued and outstanding, respectively
17,167
16,422
Retained earnings
109,567
101,289
Accumulated other comprehensive income
612
499
Total shareholders' equity
127,346
118,210
Total liabilities and shareholders' equity
$
196,088
$
176,064
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Three Months Ended
December 29, 2012
December 31, 2011
Cash and cash equivalents, beginning of the period
$
10,746
$
9,815
Operating activities:
Net income
13,078
13,064
Adjustments to reconcile net income to cash generated by operating
activities:
Depreciation and amortization
1,588
721
Share-based compensation expense
545
420
Deferred income tax expense
1,179
1,456
Changes in operating assets and liabilities:
Accounts receivable, net
(668)
(3,561)
Inventories
(664)
(460)
Vendor non-trade receivables
(2,174)
(1,206)
Other current and non-current assets
413
(962)
Accounts payable
6,145
4,314
Deferred revenue
1,611
1,296
Other current and non-current liabilities
2,373
2,472
Cash generated by operating activities
23,426
17,554
Investing activities:
Purchases of marketable securities
(37,192)
(40,175)
Proceeds from maturities of marketable securities
3,460
3,038
Proceeds from sales of marketable securities
23,002
21,472
Payments made in connection with business acquisitions, net
(284)
0
Payments for acquisition of property, plant and equipment
(2,317)
(1,321)
Payments for acquisition of intangible assets
(138)
(108)
Other
(52)
(34)
Cash used in investing activities
(13,521)
(17,128)
Financing activities:
Proceeds from issuance of common stock
76
91
Excess tax benefits from equity awards
404
333
Dividends and dividend equivalent rights paid
(2,493)
0
Repurchase of common stock
(1,950)
0
Taxes paid related to net share settlement of equity awards
(534)
(355)
Cash (used in)/generated by financing activities
(4,497)
69
Increase in cash and cash equivalents
5,408
495
Cash and cash equivalents, end of the period
$
16,154
$
10,310
Supplemental cash flow disclosure:
Cash paid for income taxes, net
$
1,890
$
1,474
Apple Inc.
Q1 2013 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Q1'13 (a)
Q4'12 (a)
Q1'12 (a)
Sequential Change
Year/Year Change
Operating Segments
Revenue
Revenue
Revenue
Revenue
Revenue
Americas
$
20,341
$
13,810
$
17,714
47%
15%
Europe
12,464
8,023
11,256
55%
11%
Greater China (b)
6,830
5,427
4,080
26%
67%
Japan
4,443
2,367
3,550
88%
25%
Rest of Asia Pacific
3,993
2,110
3,617
89%
10%
Retail
6,441
4,229
6,116
52%
5%
Total Apple
$
54,512
$
35,966
$
46,333
52%
18%
Q1'13 (a)
Q4'12 (a)
Q1'12 (a)
Sequential Change
Year/Year Change
Product Summary
Units
Revenue
Units
Revenue
Units
Revenue
Units
Revenue
Units
Revenue
iPhone (c)
47,789
$
30,660
26,910
$
16,645
37,044
$
23,950
78%
84%
29%
28%
iPad (c)
22,860
10,674
14,036
7,133
15,434
8,769
63%
50%
48%
22%
Mac (c)
4,061
5,519
4,923
6,617
5,198
6,598
- 18%
- 17%
- 22%
- 16%
iPod (c)
12,679
2,143
5,344
820
15,397
2,528
137%
161%
- 18%
- 15%
iTunes/Software/Services (d)
3,687
3,496
3,020
5%
22%
Accessories (e)
1,829
1,255
1,468
46%
25%
Total Apple
$
54,512
$
35,966
$
46,333
52%
18%
(a)
Q1'13 and Q4'12 spanned 13 weeks whereas Q1'12 included a 14th
week.
(b)
Greater China includes China, Hong Kong and Taiwan.
(c)
Includes deferrals and amortization of related non-software
services and software upgrade rights.
(d)
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.
(e)
Includes sales of hardware peripherals and Apple-branded and
third-party accessories for iPhone, iPad, Mac and iPod.
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“The cloud opportunity is helping C-suite leaders reshape customer experience," said Paul Papas, Global Leader Smarter Commerce, IBM Global Business Services. “As part of IBM's digital front office strategy, we see these 100 cloud applications as a way for business leaders to imp...
Last Friday calm seemed to be descending on Round Rock, Texas.
Reports were circulating that activist shareholder Carl Icahn was losing the stomach for scuttling the Michael Dell-Silver Lake Management plan to buy the company for $24.4 billion and take it private. 
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Todd Bradley, the former Palm CEO who’s been running HP’s PC unit since 2005 and added printing last year when the Printing and Personal Systems (PPS) organization was formed, has apparently been pushed aside.
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