Apple reports $120m loss for Q1

Apple Computer Inc. has reported a US$120 million loss for the first quarter, citing poor sales in the U.S. of its Performa consumer computers.

Apple Computer Inc. has reported a US$120 million loss for the first quarter, citing poor sales in the U.S. of its Performa consumer computers.

For the quarter that ended December 27, 1996, Apple lost 96 cents per share, on revenues of $2.1 billion and unit sales of 923,000.

That compares to a loss of $69 million, or 56 cents per share, on revenues of $3.1 billion in the first quarter a year ago, and a profit of $25 million, or 20 cents per share, in the fourth quarter of fiscal 1996.

The company is working on a restructuring plan to help it return to profitability, but executives said in a conference call that it was too early to say whether that would include layoffs or more outsourcing of manufacturing.

Despite the results, Apple is on track to return to profit and increase market share, particularly in light of the Next Software Inc. acquisition, CEO and Chairman Gil Amelio said in a statement.

"While we were very disappointed by the Performa sales results and the associated loss, our financial position remains sound," said Fred Anderson, chief financial officer. "We exited the quarter with $1.8 billion in cash and continued to show improvements in our inventory management during the quarter."

In addition, sales were up for high-end Power Macintosh computers and PowerBooks, which were so popular they were on back order, Anderson said.

Apple, based in Cupertino, California, can be reached on the Web at http://www.apple.com/.

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