Apple losses continue, at slower rate, in June quarter

Apple has posted a US$32 million loss for its June quarter, turning in a better performance than in the preceding three months, when it lost more than US$700 million.

Struggling Apple has posted a US$32 million loss for its June quarter, turning in a better performance than in the preceding three months, when it lost more than US$700 million, company officials say. For the quarter that ended June 28, Apple showed revenues of US$2.179 billion, officials say. That's a decrease of 15% compared to the same quarter last year, but roughly equal to the US$2.185 billion posted for the quarter that ended March 29. The US$32 million loss compares to a net income of US$103 million during the same quarter last year.

The company's gross margin was 18.5%, an improvement over its March quarter margin of -19.3% (9% before inventory valuation and related adjustments), officials say. As part of its 12-month restructuring plan, Apple has decreased its employee count from 15,544 to 13,729, mostly through cuts in manufacturing and administration.

"We made great strides in the quarter in shoring up the company's balance sheet and improving liquidity," says Fred Anderson, Apple's chief financial officer and executive vice-president, in a printed statement. Apple plans to introduce new products for its target customers over the next few months and to continue aiming at the Internet and multimedia, officials say.

"With our strategy set and management team and organisation in place, we're on schedule for the continued execution of Apple's transformation," says Gilbert Amelio, Apple's chairman and CEO, in a printed statement. Still, Apple's financial results are nothing to brag about, according to one analyst. "We've seen them have an overall year-to-year decrease of shipments in every month in 1996," says Matt Sargent, industry analyst at Computer Intelligence in La Jolla, California.

For the first nine months of its fiscal year, Apple has reported revenues of US$7.512 billion, down from US$8.059 billion last year, officials say. Its net loss has been US$841 million, compared to a net income of US$364 million last year.

Apple can be reached at http://www.apple.com.

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