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Thursday, 19 April, 2001, 09:07 GMT 10:07 UK
New products boost Apple profits
Apple Powerbook
Apple's ultraslim notebook is made of titanium
Apple Computer has said that it has turned profitable again in the second quarter, on the strength of the successful launch of new products and software.

The level of the turnaround pushed the company's shares to as high as $27 in after-hours trading on Wednesday, their strongest rally since the company issued a profits warning six months ago.

The firm reported that it had earned $40m (28m), or 11 cents a share. Wall Street forecasts had ranged from an eight cent loss to a seven cent profit.

Apple OS X operating system
OS X operating system has boosted profits

"It was a great new product quarter and there's still more to come," said Apple chief executive Steve Jobs.

New products

An ultra-thin titanium notebook computer and an upgrade of its operating system were key factors that helped spur the turnaround.

The company said it had shipped 751,000 Macintosh units during the three months ending 31 March.

Looking ahead, Apple also said it was targeting revenues of between $3.2bn and $3.4bn in the next two quarters.

It said it saw improvements in both revenues and profits in both quarters.

But that was still a downgrade from the company's January forecast - of $6bn in sales for the full year.

"You know, Apple is doing extremely well compared to a lot of companies round here like Cisco. We are not having layoffs and we're doing quite well, but I think it is prudent to be conservative," the company's chief financial officer Fred Anderson told Reuters.

Profits warnings

Last September, Apple warned that its earnings for that quarter would fall short of expectations, prompting a nearly 50% dive in its share price.

The downward trend continued. In the three months ending December 2000, the company reported a net loss in profits of $247m, or 73 cents a share.

But Apple shares have risen about 60% this year. They were $2.27 higher at $25.06 in afternoon trading on Thursday.

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See also:

23 Mar 01 | Americas
Apple updates operating system
14 Sep 00 | Sci/Tech
Rivals launch new operating systems
10 Feb 00 | Microsoft
Apple Computers: A brief history
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