The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Apple's CFO Provides Projections for June Quarter

Apple's CFO Provides Projections for June Quarter

by , 6:35 PM EDT, April 25th, 2007

In Apple's Financial Results Conference Call on Wednesday, Apple's CFO made some projections for the next quarter. Revenue will be down slightly.

After his prepared statement, Peter Oppenheimer answered questions and made some projections for the next quarter, April-June, Apple's Third Fiscal Quarter.

Revenue is expected to be about US$5.1B compared to the last quarter's $5.26B just announced. Gross Margin will dip slightly from 35% to 32%. And operating expenses (OPEX) will climb from $863M to $950M.

Mr. Oppenheimer cited favorable commodity prices (cost of parts, RAM, etc.) during the last quarter for the excellent Gross Margin, but warned investors that commodity prices are expected to go up this quarter. As a result the Gross margin will drop, and the guidance was that 35% is not a sustainable number.

Also, the quarter ending in June is the education buying season for K-12, and the Average Selling Price (ASP) for Macs is typically lower. The Apple CFO reported that, in addition, the Q3 is not considered a strong consumer buying season, hence the slightly reduced expectation for revenue of $5.1B.

Apple also projected a significant increase in OPEX for the next quarter, a 10 percent increase to US$950, but no detailed reason was provided.

No specific projections for Mac or iPods sales were made.

Finally, one analyst asked about Apple's current US$12.6B in cash. Typically, having that much cash sitting around is not considered "a good use of money," and one analyst asked if Apple is planning a stock buy-back. Mr. Oppenheimer admitted that the board has, from time to time, discussed a stock buy-back, but there has been no decision.

Recent Headlines - Updated May 28th

Wed,3:10 PM
How to Deauthorize All Devices in iTunes 12
Thu,1:41 PM
TMO Daily Observations 2015-05-28: Target Says Yes to Apple Pay, Hiding Pics in Photos
9:12 AM
Pebble Time Ships, Apple Watch Comparisons Coming Soon
Wed,6:47 PM
TextExpander 5 and TextExpander touch 3.5 Released
6:10 PM
ACM 308: Jony Ive’s New Job, Cortana, and Apple Watch Wish List
6:04 PM
iOS Bug can Crash Your iPhone with a Text Message
5:10 PM
Apple Redefined ‘Hidden’ in Photos App for Mac
4:50 PM
Texas BBQ and High Technology…
2:08 PM
Last Chance to Register for the Apple Thunderbolt Giveaway
1:04 PM
TMO Daily Observations 2015-05-27: Apple’s Big Discoveryd and Messages Bugs
12:56 PM
Skype for Mac Update Ignores Its Own Audio Settings
9:36 AM
Yosemite 10.10.4 Beta Dumps Discoveryd to Fix Network Issues
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!