Apple Q3 earnings jump, net income soars 425 percent

13.07.2005
Von Ken Mingis

Apple Computer Inc. Wednesday reported record third-quarter earnings of US$320 million, or 37 cents a share, on revenue of $3.52 billion, with the jump apparently driven by strong demand for the company?s hardware and iPod portable music players.

The results for the quarter, which ended June 25, compare with a net profit of $61 million, or 8 cents per diluted share, and revenue of $2.01 billion in the same quarter a year ago. That represents revenue growth of 75 percent from the same quarter in 2004 and net profit growth of 425 percent.

The company, which just last month announced that it would be moving its computer hardware over to processors made by Intel Corp. -- prompting concerns that the decision might cause a slowdown in sales -- reported that it sold 1.18 million desktop and laptop computers in the quarter. That?s a 35 percent increase over the same quarter a year ago.

As for Apple?s popular music players, the company reported that it sold more than 6.1 million iPods in the quarter, an increase of 616 percent from a year ago.

?We are delighted to report Apple?s best quarter ever in both revenue and earnings,? said Apple CEO Steve Jobs. ?The launch of Mac OS X Tiger has been a tremendous success, and we have more amazing new products in the pipeline.?

International sales accounted for 39 percent of the quarter?s revenue, Apple said.

?We?re very pleased to report 75 percent revenue growth and a 425 percent increase in net income,? said Peter Oppenheimer, Apple?s chief financial officer. ?Looking ahead to the fourth quarter of fiscal 2005, we expect revenue of about $3.5 billion and earnings per diluted share of about 32 [cents].?

Apple officials planned to discuss the company?s financial results in a late afternoon conference call.