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:
S&P Says Apple's Q4 Loss Will Not Effect Apple's Stock Ratings

S&P Says Apple's Q4 Loss Will Not Effect Apple's Stock Ratings

by , 2:00 PM EDT, October 17th, 2002

Standard & Poor's (S&P) released a statement today concerning Apple's Q4 loss reported yesterday. According to the S&P, Apple's stock ratings will not be hurt by the loss, which was incurred largely because of a write-down in the value of their holdings in Akamai and Earthlink. In the statement, Apple's profit before non-recurring charges was emphasized. The S&P further emphasized that their outlook on Apple's stock was partially caused, and reliant upon, Apple's cash holdings of more than US$4 billion. That statement:

Apple Computer Corp. recently reported flat revenues of $1.4 billion for the fourth quarter ended Sept. 28, 2002, and a net loss of $45 million. Excluding nonrecurring items, net profit for the quarter would have been $7 million, compared to a net profit of $66 million a year ago. Standard & Poor's does not expect current earnings weakness to have an impact on Apple's ratings.

Despite flat revenues and a declining income trend over the past four quarters, Apple has maintained cash balances in excess of $4 billion and a strong balance sheet. Apple's liquidity provides it with the financial flexibility to weather difficult market conditions and depressed IT spending. However, Standard & Poor's rating and outlook incorporate the assumption that Apple will maintain positive EBITDA and cash balances of about $4 billion.

You can find the statement at Yahoo!'s financial Web site.

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.

Recent Headlines - Updated October 8th

Thu,2:28 PM
AT&T Fires Up Wi-Fi Calling Support
1:42 PM
TMO Daily Observations 2015-10-08: Samsung vs. TSMC iPhone Chips, Lightroom for iPad
11:36 AM
NASA’s Apollo Mission Photos Free on Flickr
10:33 AM
Adobe Sets Lightroom for iPhone, iPad Free from Creative Cloud
9:14 AM
Harry Potter Comes to Apple’s iBook Store with Enhanced Editions
Wed,10:30 PM
ACM 327: Competing with Google Now, Apple’s Other New Campus, iPad Pro for Artists
5:41 PM
Pay What You Want for the WordPress Wizard Bundle
1:56 PM
TMO Daily Observations 2015-10-07: AT&T Wi-Fi Calling, Apple TV and Vidity
11:50 AM
Read This Before You Install El Capitan
10:54 AM
How to Enable Wi-Fi Calling on Your iPhone
10:25 AM
AT&T gets a Green Light to Enable Wi-Fi Calling
9:00 AM
How to Turn Off Nightstand Mode in Apple watchOS 2
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!