Apple yesterday announced a first quarter loss of $120 million. Although not as bad as the $150 million that it had warned it might reach, it was bad enough for the company to revise its ?back to profit? deadline to the fourth fiscal quarter, ending 26 September 1997.
The loss for the first quarter ended 27 December compared with a profit of $25 million for the previous quarter, and was 74 per cent greater than last year's first quarter deficit of $69 million. First quarter revenues were $2.1 billion, a sequential decline of eight per cent on the previous quarter.
Gross margins for the quarter were 19 per cent, down from 22 per cent in the previous three months, but up against a year ago when they were 15 per cent.
Apple chief financial officer Fred Anderson put a brave face on the results, commenting: "We exited the quarter with $1.8 billion in cash and continued to show improvements in our inventory management during the quarter."
Chairman Gil Amelio echoed these comments in an open letter to Apple customers in which he added: "The fundamentals of our three-year recovery strategy remain strong and on target. We?ve greatly strenthened our cash position."
The poor results were blamed on disappointing US sales of the Performa product range and an inability to meet demand for the Powerbook line. This latter shortfall will be addressed in the coming months, insisted Amelio.
The 1997 fiscal year will centre on reviving the Apple product line, said Amelio, with 1998 seeing a return to growth for the supplier.
Delays to the roll-out of age verification for adult websites hasn't stopped government from considering extending them to more websites
Bluehole confirms rumours that Playstation 4 port is coming on 7 December
Atmospheric iodine works as a significant sink of tropospheric ozone, nullifying the harmful pollutant
A temperature rise of just 1.8° C would melt major ice sheets