|
Apple narrows losses
|
 |
July 16, 1997: 6:05 p.m. ET
Company loses 44 cents in third quarter; below analysts' expectations
|
NEW YORK (CNNfn) - One week after the resignation of its chairman and chief executive officer, Apple Computer Inc. late Wednesday posted a loss for its latest fiscal quarter that was lower than Wall Street had anticipated.
Apple reported a net loss of $56 million, or 44 cents a share, for its third quarter ended June 27. Including its latest losses, the troubled personal computer pioneer has reported a loss for six of the last seven quarters.
Analysts surveyed by the First Call Research Network were predicting a loss of 61 cents.
The earnings report was issued after the close of trading. Apple shares climbed 1/2 to 16-7/16 on the day. After hours, Apple dipped a slight 1/16 to 16 3/8.
While the Cupertino, Calif.-based company is still working to return to profitability, it is stemming its losses. The company lost $708 million, or $5.64 a share, in its second quarter which ended in March. In the third quarter a year ago, Apple lost $32 million, or 26 cents a share.
However, Apple cautioned it did not expect to return to profitability later this year as it had predicted.
"Our financial goals are to continue to reduce operating expenses and to return the company to profitability," said Fred D. Anderson, Apple's chief financial officer. "Though we do not expect to return to profitability in our fourth fiscal quarter, Apple's management team is sharply focused on that objective."
The company's loss from operations was $60 million, significantly lower than the $186 million in the March quarter. A year ago, the company's loss from operations was $116 million.
Operating expenses for the current quarter were $408 million, down $81 million from the March quarter. That figure excludes restructuring charges and write-offs for research and development.
The results come exactly one week after Apple announced Chairman and Chief Executive Officer Gil Amelio and Executive Vice President of Technology Ellen Hancock were leaving the company.
Anderson has assumed the day-to-day management responsibilities of the company while the search for a new chief is underway. In addition, Apple co-founder Steve Jobs, who was serving as a strategic advisor, was tapped to take an expanded role with Apple's board and management team.
--Cyrus Afzali
|
|
|
|
|
|
Apple Computer
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
