Standard & Pooris (S&P) released a statement today concerning Appleis Q4 loss reported yesterday. According to the S&P, Appleis 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, Appleis profit before non-recurring charges was emphasized. The S&P further emphasized that their outlook on Appleis stock was partially caused, and reliant upon, Appleis 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 & Pooris does not expect current earnings weakness to have an impact on Appleis 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. Appleis liquidity provides it with the financial flexibility to weather difficult market conditions and depressed IT spending. However, Standard & Pooris 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!is financial Web site.
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