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Wednesday, 17 January, 2001, 23:29 GMT
Apple posts first loss in three years
![]() Apple: "Planning a return to sustained profitability this quarter"
Apple Computer has reported its first loss in three years.
The iconic firm, famous for its Macintosh computers, said it had made a loss of $195m (£132m) in the quarter ended 30 December, compared with a $183m profit in the corresponding period the year before.
Most had already substantially downgraded their expectations for the sector after a string of computer makers warned last year that much weaker sales would lead to disappointing earnings. International Business Machines joined Apple in narrowly beating market expectations, reporting a 28% rise in fourth-quarter net earnings to $2.7bn. Clues for 2001? Analysts had hoped the results statements would provide some clues as to prospects for 2001. "The key for investors is assessing when [earnings] estimates are going to stop declining," Bear Stearns analyst Andrew Neff said. But IBM had few reassuring words to offer. "It's early in the year and we don't have a better crystal ball than you," IBM chief financial officer John Joyce said in a conference call. "Clearly the US market is volatile and uncertain. However, we are entering 2001 with some momentum and a sense of confidence." IBM said it remained comfortable with the consensus of earnings estimates for this year. Businesses in Asia and Europe should counterbalance "short-term disruptions" in the US, it said. Sales in October-December had risen 6% to $25.6bn, while for the full year net income increased 16% to $8.1bn. Apple's medicine Apple's revenue had collapsed to $1.01bn in the quarter from $2.34bn a year previously. But the company said it had implemented changes that would set it back on a profitable path. "We took our medicine last quarter and brought channel inventories back down to about five and a half weeks," chief executive Steve Jobs said. "We're starting this year with a bang - shipping our new PowerBook G4 in January, our new 733 MHz Power Mac G4 in February and Mac OS X in March." Added chief financial officer Fred Anderson: "We are planning a return to sustained profitability beginning this quarter. "We now expect revenues for [the fiscal year] to be about $6bn." Apple shares have slumped about 75% since early September. |
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