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Apple reports wider loss
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October 15, 1997: 8:09 p.m. ET
Troubled computer maker posts 19 cents a share operating loss
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NEW YORK (CNNfn) - Trouble-plagued Apple Computer Inc. said Wednesday its net loss for the fiscal fourth quarter exceeded Wall Street's consensus estimates.
For the quarter ended Sept. 26, the Cupertino, Calif.-based computer maker reported a loss of $161 million, or $1.26 a share, compared with a net profit of $25 million, or 20 cents a share, in the same quarter a year ago.
Revenue declined 30 percent to $1.6 billion.
Included in the current quarter's results are a $62 million charge to increase its restructuring reserves, as well as a $75 million write-off related to the company's purchase of the Mac OS license from Power Computing Corp.
Without the charges, the company's net loss for the quarter would have been $24 million, or 19 cents a share -- still exceeding the 14 cents a share that analysts expected.
Shares of Apple (AAPL), which rose 1-1/8 to 23-13/16 in Nasdaq trading Wednesday, were dropping in after-hours trading, off 1-3/4 at 22-1/16.
"We remain focused on our primary goal of returning Apple to sustainable profitability," said Chief Financial Officer Fred Anderson.
"Our goal for fiscal 1998 is to continue to reduce Apple's break-even point through a combination of further expense reductions and gross margin improvements," Anderson said in a statement.
The company said it continued to improve its chances of breaking even by reducing recurring operating expenses to $353 million in the fourth quarter, compared to $505 million in the year-ago-quarter and $408 million in the June quarter.
For the fiscal year ended Sept. 26, revenues were $7.1 billion, a 28 percent decrease from the prior year. The net loss for the year totaled $1 billion, or $8.29 a share, compared with a net loss of $816 million, or $6.59 a share, in fiscal 1996.
Included in the fiscal 1997 loss were restructuring charges of $217 million as well as $450 million in write-offs related to the acquisition of Next Software Inc. and the purchase of the Mac OS license from Power Computing.
-- Robert Liu
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Apple Computer
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