Apple Fiscal Q1 Revenue Increases 7%, Takes Loss

Cuppertino, Calif.— Despite a 7 percent gain in revenue during its fiscal first quarter, Apple Computer posted a loss of $8 million in the three months, compared with $38 million in net income in the year-ago period.

It was the second consecutive quarterly loss for the computer maker, which blamed a $17 million restructuring charge and $2 million accounting adjustment for its first quarter shortfall. Apple said, excluding first quarter non-recurring items, its gain for the three months would have been $11 million.

Apple posted revenue of $1.47 billion in the first quarter, ended Dec. 28, up 7 percent from the $1.38 billion recorded in the same quarter in 2001. Gross margin dropped 310 basis points in the year's opening quarter, to 27.6 percent, down from 30.7 percent in the same period a year ago.

Apple shipped 743,000 Macintosh computers during the first quarter, a flat number, when compared with the 746,000 shipped in the same quarter the previous year. Sales of the iMac were strong in the first three months, up 28 percent in units and 75 percent in dollars year over year, while movement of the Power Mac G4 dropped 25 percent in units and 20 percent in dollars for the same period.

Unit shipments in the Americas tailed off in the first quarter, to 377,000, down 1 percent from previous year. Revenue in the Americas, however, climbed 5 percent in the same period, hitting $738 million. International sales accounted for 43 percent of the company's revenue in the three months, however both unit and dollar sales in Japan were off markedly in the first three months, down 27 percent and 24 percent, respectively.

Looking ahead to the second quarter of 2003, Apple expects revenue to be relatively flat, compared with the first quarter, yet it anticipates a slight profit for the three months.