Apple is reporting earnings for the March quarter, the companyis 2nd fiscal quarter, that beat estimates. Apple earned 12 cents per share on revenues of US$1.909 billion, which represents a 29% increase over the year ago quarter. Profit for the quarter was US$46 million, a 228% increase over the year ago quarter. Those results include a US$7 million charge that might be related to the layoffs we reported last night. Excluding that charge, profits would have been US$53 million, or 14 cents per share.
In the year ago quarter, Apple reported profits of 4 cents per share, or US$14 million. Gross margins, an important barometer of how healthy a companyis operations are, were 27.8 percent, down from 28.3 percent in the year-ago quarter. Appleis gross margins are the highest in the industry.
International sales accounted for 43 percent of the quarteris revenue.
Apple saw increased unit sales in both Macs and iPods. The company sold 749,000 Macs during the quarter, which represents a 5% increase over the year ago period. Apple also sold 807,000 iPods, which represents a massive jump of 909% over the year ago period.
"Apple had a great quarter with 29 percent revenue growth and 200 percent earnings per share growth year-over-year," Apple CEO Steve Jobs said in a press release. "We experienced growth in most areas of our business -- most dramatically in selling a record 807,000 iPods, up more than 900 percent over the prior year."
Fred Anderson, Appleis CFO, said in the press release that Apple had increased its cash holdings yet again. "Our balance sheet remains very strong with about US$4.6 billion in cash and no debt," he said. "Looking ahead to the third quarter of fiscal 2004, we expect our fourth consecutive quarter of year-over-year double-digit growth in both revenue and earnings, with revenue of about US$1.925 billion. We expect GAAP earnings per diluted share of US$.12 to US$.13, including approximately US$.02 per diluted share in restructuring charges."
TMO will offer full coverage of the companyis conference call first thing in the morning.