Apple today announced financial results for its fiscal 2007 first quarter ended December 30, 2006. The Company posted record revenue of $7.1 billion and record net quarterly profit of $1.0 billion, or $1.14 per diluted share. These results compare to revenue of $5.7 billion and net quarterly profit of $565 million, or $.65 per diluted share, in the year-ago quarter. Gross margin was 31.2 percent, up from 27.2 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter’s revenue.
Apple shipped 1,606,000 Macintosh computers and 21,066,000 iPods during the quarter, representing 28 percent growth in Macs and 50 percent growth in iPods over the year-ago quarter.
“We are incredibly pleased to report record quarterly revenue of over $7 billion and record earnings of $1 billion,” said Steve Jobs, Apple’s CEO, in the press release. “We’ve just kicked off what is going to be a very strong new product year for Apple by launching Apple TV and the revolutionary iPhone.”
“We generated over $1.75 billion in cash during the quarter to end with $11.9 billion,” said Peter Oppenheimer, Apple’s CFO, in the press release. “Looking ahead to the second fiscal quarter of 2007, we expect revenue of $4.8 to $4.9 billion and earnings per diluted share of $.54 to $.56.”
Apple will provide live streaming of its Q1 2007 financial results conference call utilizing QuickTime, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PST on Wednesday, January 17, 2007 at http://www.apple.com/quicktime/qtv/earningsq107/ and will also be available for replay.
MacDailyNews Note: Ahead of the earnings release, Thomson First Call analysts had expected Apple to make 78 cents a share on sales of $6.42 billion for the first quarter.
Apple expects operating margin to drop from 18% last quarter to ~12% this quarter. The drop is attributed to the favorable commodity prices not beeing sustained going forward.
AAPL is trading at $94.73. The short sellers are in control right now.
AAPL is tanking – now it’s below $94.50 – and well below the day’s closing price of $94.95
I’m waiting for Leopard to ship, and my new stylish 12″ multitouch, super duper, ultra pro portable, magical computer (Harry Potter eat your heart out.)
When that happens mac sales will soar to magical heights. You heard it here first.
macromancer: wow how things have changed since 1997.
Ain’t it? Good thing Jobs didn’t sell Apple and return the money to the investors.
OK, my last post on this. $93.60 and falling fast. Sigh.
Sell on news?
AAPL trading at $93.65 currently.
Does anybody think it’s possible that Apple will try to buy Cingular if their iPhone is successful? It would make more sense why they went with them exclusively.
Curious.
Bob, AT&T just bought Cingular
Two words: Buy Adobe
Bob, there is zero chance of Apple buying Cingular. This would make no business sense at all, neither for Apple nor for Cingular.
Apple does not want to become a mobile phone operator, and Cingular’s two parent companies (BellSouth and AT&T) just merged, bringing Cingular in house.
Two different industries – computers/consumer electronics vs telecom.
Yeah, I just think it’s weird that Apple went with them exculsively. Still trying to figure out why.
Thanks
The conference call has ended. AAPL is trading at $94.30, well below yesterday’s close at $94.10.
Good support @ $93
Oops! Above, I meant “… well below yesterday’s close as $97.10”.
Apologies for the error.
AAPL does have support below, namely at the $93 level. Below that, support is around $91.50, $90, and $86.40-$87 levels.
AAPL currently trading at $93.70.
AAPL is tanking – now it’s below $94.50 – and well below the day’s closing price of $94.95
—
This happens every single time.
The depresssing thing is you weren’t trying to be ironic. You were just trying to bum everyone out.
Please shoot yourself.
This doesn’t happen every single time. It shot up $10 bucks last time. And I wasn’t trying to bum you out. Just venting publicly, I guess. I was happier when it peaked at an all-time high.
And violence is NEVER a solution. You should know better. Shame on you!
Who cares about these short-term price gyrations? The stock will go well above $100, split (2 or 1), and get back to $100 (after the split) before this time next year.
And don’t forget that I think last year, they payed off all of their debt.
How long will it be before Rob Enderle writes that the Mac is doomed because sales are stagnating?
I give him 2 days.
Bob, because they needed to change the “voicemail” database handling system for the iPhone (and Cingular was willing to do that). It’s in the Time article
Everyone is so ‘impressed’ that the stock is now in meltdown mode in after hours.
MSFT is still real cheap, though.
Welcome to the social.
Well, I got the 21 million iPods right. But I was hoping for 2.1 million Macs – too optomistic I guess.
21 million iPods?!?!?! Who does NOT own one now?
The 1.6 million Macs sold is mildly disappointing. That’s actually slightly less than were sold in the 3rd quarter. Maybe Steve needs to stop pumping the iPhone so much and get to work on increasing those Mac sales some more. Lord knows he sure ignored the Mac at MacWorld.
RC and others…
Actually, Apple doesn’t need to do anything to the Macintosh market other than get some more BTO capacity for the independent reseller channel (i.e. non-Apple Store).
When I was trying to purchase BTO machines for customers at the end of November/start of December, I was being quoted for delivery in late December/early January if I was lucky.
Thankfully, due to the rest of my projects being unreasonably profitable, I was able to cross-subsidise the purchase of third-party RAM in order to bring my customer’s machines up to spec given the somewhat bizarre circumstances of Apple’s expansion RAM being cheaper than the rest of the market.
Many ‘box shifters’ wouldn’t have that kind of flexibility and a lot of customers who could have been counted into the quarter probably didn’t see their machines until after the 30/12 deadline and may only just be seeing them now, which means that Apple won’t count them until this quarter or they’ll get screwed by Sarbanes-Oxley or somesuch.
If you don’t believe me, look at Apple average revenue per CPU: $1501 per unit in the last quarter as opposed to $1375 either for the previous quarter or the same quarter 12 months ago. In other words, whilst the rest of the PC market invariably is selling more systems for less revenue/unit, Apple sold 28% more units for 9.16% more revenue/unit. I would argue that this is a sure sign that a lot of people are buying their expansion RAM as CTO from Apple and I’ve already provided evidence that – at the peak of the season – Apple was short on CTO capacity for independent resellers.
On that basis, I’d argue that Apple probably had a massive catapult into the current quarter – possibly 100,000 to 150,000 units, maybe even more – and that anyone who is stupid enough to be selling on the basis of today’s results needs their head examined.