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Text of press release

Exhibit 99.1

Apple Reports Record Results

47.8 Million iPhones Sold; 22.9 Million iPads Sold

CUPERTINO, California—January 23, 2013—Apple® today announced financial results for its 13-week fiscal 2013 first quarter ended December 29, 2012. The Company posted record quarterly revenue of $54.5 billion and record quarterly net profit of $13.1 billion, or $13.81 per diluted share. These results compare to revenue of $46.3 billion and net profit of $13.1 billion, or $13.87 per diluted share, in the 14-week year-ago quarter. Gross margin was 38.6 percent compared to 44.7 percent in the year-ago quarter. International sales accounted for 61 percent of the quarter’s revenue.

Average weekly revenue was $4.2 billion in the quarter compared to $3.3 billion in the year-ago quarter.

The Company sold a record 47.8 million iPhones in the quarter, compared to 37 million in the year-ago quarter. Apple also sold a record 22.9 million iPads during the quarter, compared to 15.4 million in the year-ago quarter. The Company sold 4.1 million Macs, compared to 5.2 million in the year-ago quarter. Apple sold 12.7 million iPods in the quarter, compared to 15.4 million in the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on February 14, 2013, to shareholders of record as of the close of business on February 11, 2013.

“We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” said Tim Cook, Apple’s CEO. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

“We’re pleased to have generated over $23 billion in cash flow from operations during the quarter,” said Peter Oppenheimer, Apple’s CFO. “We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple’s highest quarterly revenue ever.”

Apple is providing the following guidance for its fiscal 2013 second quarter:

 

•  

revenue between $41 billion and $43 billion

 

•  

gross margin between 37.5 percent and 38.5 percent

 

•  

operating expenses between $3.8 billion and $3.9 billion

 

•  

other income/(expense) of $350 million

 

•  

tax rate of 26%


Apple will provide live streaming of its Q1 2013 financial results conference call beginning at 2:00 p.m. PST on January 23, 2013 at www.apple.com/quicktime/qtv/earningsq113. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 29, 2012, and its Form 10-Q for the quarter ended December 29, 2012 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

Press Contact:

Steve Dowling

Apple

dowling@apple.com

(408) 974-1896

Investor Relations Contacts:

Nancy Paxton

Apple

paxton1@apple.com

(408) 974-5420

Joan Hoover

Apple

hoover1@apple.com

(408) 974-4570

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

© 2013 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except number of shares which are reflected in thousands and per share amounts)

 

                                                 
     Three Months Ended  
     December 29,
2012
     December 31,
2011
 

Net sales

   $ 54,512       $ 46,333   

Cost of sales (1)

     33,452         25,630   
  

 

 

    

 

 

 

Gross margin

     21,060         20,703   
  

 

 

    

 

 

 

Operating expenses:

     

Research and development (1)

     1,010         758   

Selling, general and administrative (1)

     2,840         2,605   
  

 

 

    

 

 

 

Total operating expenses

     3,850         3,363   
  

 

 

    

 

 

 

Operating income

     17,210         17,340   

Other income/(expense), net

     462         137   
  

 

 

    

 

 

 

Income before provision for income taxes

     17,672         17,477   

Provision for income taxes

     4,594         4,413   
  

 

 

    

 

 

 

Net income

   $ 13,078       $ 13,064   
  

 

 

    

 

 

 

Earnings per share:

     

Basic

   $ 13.93       $ 14.03   

Diluted

   $ 13.81       $ 13.87   

Shares used in computing earnings per share:

     

Basic

     938,916         931,041   

Diluted

     947,217         941,572   

Cash dividends declared per common share

   $ 2.65       $ 0   

(1)  Includes share-based compensation expense as follows:

  

Cost of sales

   $ 85       $ 63   

Research and development

   $ 224       $ 160   

Selling, general and administrative

   $ 236       $ 197   


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares which are reflected in thousands)

 

                                                 
     December 29,
2012
     September 29,
2012
 
ASSETS:      

Current assets:

     

Cash and cash equivalents

   $ 16,154       $ 10,746   

Short-term marketable securities

     23,666         18,383   

Accounts receivable, less allowances of $119 and $98, respectively

     11,598         10,930   

Inventories

     1,455         791   

Deferred tax assets

     2,895         2,583   

Vendor non-trade receivables

     9,936         7,762   

Other current assets

     6,644         6,458   
  

 

 

    

 

 

 

Total current assets

     72,348         57,653   

Long-term marketable securities

     97,292         92,122   

Property, plant and equipment, net

     15,422         15,452   

Goodwill

     1,381         1,135   

Acquired intangible assets, net

     4,462         4,224   

Other assets

     5,183         5,478   
  

 

 

    

 

 

 

Total assets

   $ 196,088       $ 176,064   
  

 

 

    

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY:      

Current liabilities:

     

Accounts payable

   $ 26,398       $ 21,175   

Accrued expenses

     13,207         11,414   

Deferred revenue

     7,274         5,953   
  

 

 

    

 

 

 

Total current liabilities

     46,879         38,542   

Deferred revenue – non-current

     2,938         2,648   

Other non-current liabilities

     18,925         16,664   
  

 

 

    

 

 

 

Total liabilities

     68,742         57,854   
  

 

 

    

 

 

 

Commitments and contingencies

     

Shareholders’ equity:

     

Common stock, no par value; 1,800,000 shares authorized; 938,973 and
939,208 shares issued and outstanding, respectively

     17,167         16,422   

Retained earnings

     109,567         101,289   

Accumulated other comprehensive income

     612         499   
  

 

 

    

 

 

 

Total shareholders’ equity

     127,346         118,210   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 196,088       $ 176,064   
  

 

 

    

 

 

 


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 

                                                 
     Three Months Ended  
     December 29,
2012
    December 31,
2011
 

Cash and cash equivalents, beginning of the period

   $ 10,746      $ 9,815   
  

 

 

   

 

 

 

Operating activities:

    

Net income

     13,078        13,064   

Adjustments to reconcile net income to cash generated by operating activities:

    

Depreciation and amortization

     1,588        721   

Share-based compensation expense

     545        420   

Deferred income tax expense

     1,179        1,456   

Changes in operating assets and liabilities:

    

Accounts receivable, net

     (668     (3,561

Inventories

     (664     (460

Vendor non-trade receivables

     (2,174     (1,206

Other current and non-current assets

     413        (962

Accounts payable

     6,145        4,314   

Deferred revenue

     1,611        1,296   

Other current and non-current liabilities

     2,373        2,472   
  

 

 

   

 

 

 

Cash generated by operating activities

     23,426        17,554   
  

 

 

   

 

 

 

Investing activities:

    

Purchases of marketable securities

     (37,192     (40,175

Proceeds from maturities of marketable securities

     3,460        3,038   

Proceeds from sales of marketable securities

     23,002        21,472   

Payments made in connection with business acquisitions, net

     (284     0   

Payments for acquisition of property, plant and equipment

     (2,317     (1,321

Payments for acquisition of intangible assets

     (138     (108

Other

     (52     (34
  

 

 

   

 

 

 

Cash used in investing activities

     (13,521     (17,128
  

 

 

   

 

 

 

Financing activities:

    

Proceeds from issuance of common stock

     76        91   

Excess tax benefits from equity awards

     404        333   

Dividends and dividend equivalent rights paid

     (2,493     0   

Repurchase of common stock

     (1,950     0   

Taxes paid related to net share settlement of equity awards

     (534     (355
  

 

 

   

 

 

 

Cash (used in)/generated by financing activities

     (4,497     69   
  

 

 

   

 

 

 

Increase in cash and cash equivalents

     5,408        495   
  

 

 

   

 

 

 

Cash and cash equivalents, end of the period

   $  16,154      $ 10,310   
  

 

 

   

 

 

 

Supplemental cash flow disclosure:

    

Cash paid for income taxes, net

   $  1,890      $ 1,474   
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