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Apple's troubles mount
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April 16, 1997: 6:22 p.m. ET
Company posts losses of $708 million for its second quarter
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NEW YORK (CNNfn) - Losses continue to mount for troubled Apple Computer Co., which is in the midst of another restructuring it hopes will allow it to gain market share and return to profitability.
The company on Wednesday posted a second-quarter loss of $708 million, or $5.64 a share, reflecting one-time charges and weak sales. The figure compares with a net loss of $120 million, or 96 cents a share, in the quarter ended December 1996 and a net loss of $740 million, or $5.99 a share, in the year-ago quarter.
First Call's analyst survey estimates had put Apple's expected loss at $1.22 a share.
"While the operating results are disappointing, we made significant progress toward executing our strategic plans during the quarter," said Apple Chairman and Chief Executive Officer Gil Amelio.
"We've streamlined our organization, narrowed our focus, we're divesting non-core assets and we're executing a plan to reduce annual operating expenses by $500 million," he said.
Revenues came in at $1.6 billion, compared to $2.1 billion last quarter and $2.2 billion in the second quarter of 1996.
Results include charges of $375 million relating to the acquisition of NeXT Software and a $155 million to increase reserves to cover restructuring costs.
Apple released the figures after the close of trading Wednesday. Shares of Apple (AAPL) closed up 1/8 to 18-9/16 on the Nasdaq.
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Apple Computer
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