Summary
Apple Inc. (AAPL) reported its financial results for the quarter ended December 28, 2002. The company experienced a net loss of $8 million for the quarter, a significant decrease from the $38 million net income reported in the same period last year. This downturn was driven by a decrease in gross margin to 27.6% from 30.7% year-over-year, largely due to aggressive pricing on newer Macintosh models and a higher mix of lower-margin consumer products. Despite the net loss, net sales saw a 7% increase year-over-year, reaching $1.47 billion, boosted by strong performance in peripherals, software, and particularly the Retail segment which saw a 208% increase in net sales. The company also continues to maintain a strong liquidity position, with cash and cash equivalents and short-term investments totaling $4.46 billion, and generated positive cash flow from operations of $110 million. Management anticipates a slight profit for the next quarter, indicating a potential stabilization after this period of loss.
Key Highlights
- 1Net loss of $8 million for the quarter, compared to a net income of $38 million in the prior year's comparable quarter.
- 2Net sales increased by 7% to $1.47 billion, driven by growth in peripherals, software, and the Retail segment.
- 3Gross margin decreased to 27.6% from 30.7% year-over-year, attributed to pricing strategies and product mix.
- 4The Retail segment experienced significant growth, with net sales rising 208% to $148 million.
- 5Cash, cash equivalents, and short-term investments remained strong at $4.46 billion.
- 6Generated $110 million in cash from operating activities.
- 7Anticipates a slight profit in the upcoming second quarter of 2003.