Apple posts another quarterly profit

Journal Record, The (Oklahoma City), Apr 16, 1998

SAN JOSE, Calif., Calif. (AP) -- Apple Computer, helped by further cost cuts and popular new computers, on Wednesday reported its second straight quarterly profit, far outstripping expectations.

The company earned $55 million, or 38 cents a share on a diluted bases, for the January-March quarter, traditionally a slow time for the computer industry. The profit compares with a loss of $708 million, or $5.64 cents a share, a year ago, when the company paid for a restructuring and an acquisition.

Revenue fell 12 percent, to $1.4 billion from $1.6 billion. But Apple shipped 8 percent more computers than it did a year ago, and margins rose, thanks to its new Macintosh G3 computers. Analysts surveyed by First Call had predicted a profit of 17 cents a share. "Apple had a great quarter, no question about it," said Steve Jobs, Apple's interim CEO. The company, based in Cupertino, Calif., reported results after the stock market closed. The report was likely to cheer Apple's supporters, who in recent years have had little financial news to celebrate. Before posting a $47 million profit for the October-December quarter, Apple lost nearly $2 billion in two years. The company's market share has tumbled as rival personal computers using Microsoft's Windows operating software became easier to use, matching many benefits of Apple's pioneering machines. The persistent problems have led to two management shakeups in as many years. In the latest, co-founder Jobs temporarily replaced ousted chief executive Gil Amelio as the company seeks a permanent leader. Under Jobs, who took charge of Apple in July, the company has introduced speedy G3 Macintosh computers aimed at businesses, started building computers to order over the Internet, and stopping making its Newton hand-held devices.