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European Apple Exec Says That Apple Plans To Break Even Next Quarter

European Apple Exec Says That Apple Plans To Break Even Next Quarter

by , 10:00 AM EDT, August 12th, 2002

In a somewhat unusual move for the close-lipped Apple, a European executive has told the press that Apple intends to break even in the next quarter. Reuters is reporting that Pascal Cagni, Apple's general manager for Europe, Middle East and Africa, has told an Italian publication that due to the poor economy, Apple is shooting to break even. Apple usually limits comments concerning its financial performance to managed PR events and press releases in the US. From the Reuters article:

US computer giant Apple expects to break even in the next quarter after disappointing results in the previous quarter, head of Apple's European division said in an interview with Italian la Stampa daily published on Sunday.

In the fiscal third quarter that closed in June, Apple reported a 48 percent slide in quarterly earnings to $32 million and issued a cautious outlook for the current quarter, blaming weak markets for a blow to the recovery it began last year.

"It would be crazy to expect strong growth at this moment, therefore we aim to break even in the next quarter," Pascal Cagni, Apple's general manager for Europe, Middle East and Africa, told La Stampa.

Spokespersons from Apple was unavailable for comment at press time. Apple's stock opened lower today, and is trading at 14.75 0.25 (-1.67%) as of press time.

You can find the full Reuters report at Yahoo!'s Web site. Forbes has also published a similar report based on the same source.


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

The Mac Observer Spin:

This is an interesting development only because of its irregularity. That Apple should be shooting only to break even comes as little surprise, but hearing it from a European exec is not the normal avenue for this sort of thing. That said, Apple could simply be trying to get the word out that the current quarter will definitely be weak, a message already delivered in its most recent quarterly earnings report, and isn't taking any chances on a break even announcement being seen as a surprise.

Wall Street is really punishing Apple, despite the fact that the company is the healthiest of all the PC manufacturers with the exception of Dell. As we have noted here at TMO, Apple's cash reserves alone leave its facilities, patent portfolio, brain trust, and other properties valued at less than US$1 billion, despite the fact that Apple is actually turning a profit, or has been until now.

On the other hand, note that Reuters refers to Apple as the "US computer giant." Troubled, beleagured, and other negative epithets have so far not reared their misbegotten heads once again. We find that refreshing.

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