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xi_hyperon · Jan 17, 2007, 05:42 PM

Holy. Crap. That's um, impressive.

CUPERTINO, Calif., Jan. 17 /PRNewswire-FirstCall/ -- Apple(R) 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(R) 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. "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."

Eug · Jan 17, 2007, 05:51 PM

21 million iPods
1.6 million Macs
31.2% margin
1 billion $ profit

Holy frackin' crap.

What's AAPL in after hours trading?

mdc · Jan 17, 2007, 05:53 PM

Wow!

That's a lot of iPods sold. I hope this year is just as good for them

scottiB · Jan 17, 2007, 05:56 PM

Holy ****!

Eug · Jan 17, 2007, 05:57 PM

Interestingly, the number of Macs is lower than what some analysts were predicting.

The number iPods is way more more than they were predicting though.

P.S. I didn't think I'd see AAPL hit the $1000000000 profit mark before 2010.

P.P.S. They now have $11.9 billion cash in the bank now.

xi_hyperon · Jan 17, 2007, 05:59 PM

Conference call begins in a couple of minutes, for anyone who's interested.

Apple - Quarter 1 - 2007 Financial Results

BRussell · Jan 17, 2007, 06:02 PM

They sold fewer Macs than the previous quarter.

Eug · Jan 17, 2007, 06:06 PM

Originally Posted by BRussell

They sold fewer Macs than the previous quarter.

Mid-cycle for many of the Macs, but nonetheless it was a bit disappointing, especially since new Core 2 Duo laptops were released in October/November.

G Barnett · Jan 17, 2007, 06:08 PM

This is gonna do wonders for that shareholder suit alleging that the backdating thing has harmed Apple financially....

Oh, wait, no.... strike that. Reverse it.

The sound you're hearing is class-action lawyers scrambling for ways to prove this constitutes "financial harm."

Eug · Jan 17, 2007, 06:10 PM

AAPL is ~$99 after hours.

EDIT:

Dropping a bit now. Profit taking I guess.

Eug · Jan 17, 2007, 06:30 PM

Sell on news...

"Shares of Apple closed down $2.15 at $94.95 on the Nasdaq Stock Market as the tech stocks in general tumbled. In extended trading following its report, Apple shares fell another 19 cents."

That would put it at $94.76.

The Yahoo link I posted in the previous post has it just below $96 now, but that data is delayed.

No Time 4 Love Dr. Jones · Jan 17, 2007, 06:32 PM

Isn't shipping 21 millions iPods different than selling them?

BRussell · Jan 17, 2007, 06:37 PM

Originally Posted by No Time 4 Love Dr. Jones

Isn't shipping 21 millions iPods different than selling them?

Haha, yeah they just shipped them from one of their warehouses to another.

Chuckit · Jan 17, 2007, 06:50 PM

Originally Posted by No Time 4 Love Dr. Jones

Isn't shipping 21 millions iPods different than selling them?

Yeah, I hear nobody is buying iPods anymore.

olePigeon · Jan 17, 2007, 07:12 PM

Originally Posted by Chuckit

Yeah, I hear nobody is buying iPods anymore.

It's all about the Zune, now. Welcome to the stu- ... err, welcome to the social.

OldManMac · Jan 17, 2007, 07:35 PM

Originally Posted by BRussell

They sold fewer Macs than the previous quarter.

Yes, but they sold 28 percent more than the same quarter a year ago, and the number sold is still quite good.

Eriamjh · Jan 17, 2007, 07:45 PM

Macs grew at 4X the market pace. No problem here.

Eug · 10:56 AM

It's dropped below US$93 now.

That means that in after hours trading since yesterday's close, it was up to 7% higher than it is now.
(It peaked at $99.48 yesterday after the close.)

P.S. Apple iProduct.

EDIT:

As of 9:56 am EST, it is now at $90.77.

Eug · Jan 18, 2007, 05:10 PM

Closed today at $89.07.

Remarkable drop since yesterday's peak of 99 and a half.

CNN has this to say: Maybe the market's right about Apple

If you've been following the market today, you've watched Apple (AAPL) help tank the Nasdaq, despite posting great results, with the Mac, iPod, and income growing in the first quarter. The many anaylsts who contribute to CNNMoney's tech roundup are puzzled by the market's pessimism given the great numbers, the potential for the iPhone, and CEO Steve Jobs's apparent skating of the rap on options backdating.

But check this out. Buried in the middle of WSJ's morning story about Apple's results:

One of the biggest surprises in the quarter was the level of Apple's profitability. The company said its gross profit margin for the quarter was 31.2%, up from 27.2% a year earlier. Apple executives said the increase was a reflection in part of favorable pricing for key technical components that go into Apple products, such as LCD screens and flash memory that stores songs and other data on iPods.

That kind of pricing power spells trouble over the long haul. To what extent is Apple's net income just lightning in a bottle, coming at time when serious competitors to the iPod are just starting up, and they still have the pricing power to not pass any of those lower costs onto consumers?

We don't have exact numbers for these, but it would be great to see an enterprising analyst quiz Apple about this. Because all that income growth could be wiped out if component prices - often out of Apple's control - go up, or if Apple's forced to lower the price of the iPod as the Zune (or even the iPhone!) starts eating into the music-player market.

Zune? Uh no. The component issue is something to consider, but I wonder why they're bringing this up now. Apple has always been like that. They don't like having their prices fluctuate up and down all the time, even when it means taking a profit hit sometimes.

Gossamer · Jan 18, 2007, 05:14 PM

Any idea why? Shouldn't this have raised the prices?

Eug · Jan 18, 2007, 05:26 PM

Originally Posted by Gossamer

Any idea why? Shouldn't this have raised the prices?

I've given up on trying to understand the stock market, but I do think there is an element of this:

Chasing the rally

Apple's earnings forecast and a spate of mixed economic news were among the factors sending stocks lower on the session. However, investors were also likely backing off in the aftermath of the big rally in the second half of 2006.

"It's not surprising to see a selloff when we've had a pretty good quarter or two," said Paul Rabbit, president at Rabbit Capital Management.

Investors were doing a lot of 'performance chasing' in the fourth quarter, Rabbit said, taking on more risk so as not to miss out on the rally. However, with the new year, there is some portfolio realigning going on as they move out of riskier areas of the market.

Longer term, he said the bias for stocks remains positive, but in the very near term, more selling would not be a surprise.

That's why I sold in November (at just under $87). However, apparently I mistimed it a bit.