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News > Technology
No sales growth for Apple
February 9, 1998: 7:17 p.m. ET

Computer maker does not see year- over-year growth until Sept. quarter
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NEW YORK (CNNfn) - Apple Computer Inc. Monday said it does not expect to post year-over-year sales growth until at least the fourth quarter of fiscal 1998.
     In a quarterly filing with the Securities and Exchange Commission, the Cupertino, Calif.-based computer maker, which surprised investors last month with a fiscal first-quarter profit of $47 million, also said it does not expect to report sequential revenue growth until at least the third quarter.
     Apple has been struggling to stop a steep slide in revenues as sales of its flagship Macintosh line have come under increased competition. In the first quarter of fiscal 1998, which ended last December, Apple's revenues tumbled 26 percent from the year-earlier period to $1.57 billion.
     The decline has forced Apple to slash costs and lay off employees in order to avoid slipping further into the red. In the first quarter of fiscal 1998, the first time Apple was profitable in more than a year, the company managed to cut its operating expenses to $313 million from $521 million a year ago.
     For the second quarter that will end in March, Apple said operating expenses are expected to fall to $300 million.
     Apple said its overall gross margin - the difference between the sales price of its products and what it costs to make them - is expected to stabilize over the next several quarters at the 22.4 percent level reported in the first quarter.
     Finally, Apple said its share of the worldwide personal computer market slipped to 2.6 percent in the first quarter of fiscal 1998 from 4.3 percent a year ago. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.