iPod 900pc sales increase triples Apple profits

15 Apr 2004

Computer giant Apple said that second quarter profits tripled to US$46m, compared with a net profit of US$14m a year ago. The company said that this was helped by sales of computers and its music player device, the iPod.

The company, which in its own words ignited the personal computing revolution in the 1980s, shipped 749,000 Macintosh units and 807,000 iPods during the quarter, representing a 5pc increase in CPU units and a 909pc increase in iPods over the year-ago quarter.

Revenue for the quarter was US$1.9bn, up 29pc on a year ago. International sales accounted for 43pc of the quarter’s revenue.

The quarter’s results included an after tax restructuring charge of US$7m. Excluding this charge, Apple’s net profit for the quarter would have been US$53m.

“Apple had a great quarter with 29pc revenue growth and 200pc earnings per share growth year-over-year,” said Steve Jobs, Apple’s CEO and founder. “We experienced growth in most areas of our business — most dramatically in selling a record 807,000 iPods, up more than 900pc over the prior year.”

“We are very pleased with our third straight quarter of double-digit revenue growth,” said Fred Anderson, Apple’s CFO. “More importantly our results demonstrate operating margin expansion. Our balance sheet remains very strong with about US$4.6bn in cash and no debt. Looking ahead to the third quarter of fiscal 2004, we expect our fourth consecutive quarter of year-over-year double-digit growth in both revenue and earnings, with revenue of about US$1.925bn. We expect GAAP earnings per diluted share of US$.12 to US$.13, including approximately US$.02 per diluted share in restructuring charges.”

By John Kennedy