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Sat, Jul 04, 2009 - 10:00 PM EDT  —  AAPL: 140.02 (-2.81, -1.97%)  |  NASDAQ: 1796.52 (-49.20, -2.67%)

Apple beats Street; reports best quarterly revenue and earnings in company history
Tuesday, January 22, 2008 - 04:31 PM EDT

Apple today announced financial results for its fiscal 2008 first quarter ended December 29, 2007. The Company posted revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share. These results compare to revenue of $7.1 billion and net quarterly profit of $1 billion, or $1.14 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, up from 31.2 percent in the year-ago quarter. International sales accounted for 45 percent of the quarter's revenue.

MacDailyNews Note: Prior to Apple's earnings release, analysts surveyed by Thomson Financial had estimated that Apple would earn revenue of $9.47 billion and $1.62 per share.

Apple shipped 2,319,000 Macintosh computers, representing 44 percent unit growth and 47 percent revenue growth over the year-ago quarter. The Company sold 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Quarterly iPhone sales were 2,315,000.

"We're thrilled to report our best quarter ever, with the highest revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO, in the press release. "We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks."

"Apple's revenue grew 35 percent year-over-year to $9.6 billion, an increase of almost $2.5 billion over the previous December quarter's record-breaking results," said Peter Oppenheimer, Apple's CFO, in the press release. "Our strong results produced cash flow from operations of over $2.7 billion during the quarter, yielding an ending cash balance of over $18.4 billion. Looking ahead to the second quarter of fiscal 2008, we expect revenue of about $6.8 billion and earnings per diluted share of about $0.94."

MacDailyNews Note: Analysts surveyed by Thomson Financial are looking for Apple to report Q2 08 revenue of $6.99 billion and earnings per share of $1.09. Historically, Apple's guidance is notoriously conservative.

Apple will provide live streaming of its Q1 2008 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PST on Tuesday, January 22, 2008 at http://www.apple.com/quicktime/qtv/earningsq108/ and will also be available for replay.

MacDailyNews Note: On October 22, Apple CFO Peter Oppenheimer provided guidance for first quarter of fiscal 2008, "We expect revenue of about $9.2 billion and earnings per diluted share of about $1.42."

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Jan 22, 08 - 05:35 pm Comment from: CheekyGit

As of 3:35 PM CST, Apple is down to $135.84.

Yikes!

Jan 22, 08 - 05:36 pm Comment from: Pete

that makes a lot of sense....i just love the stock market. i should have cashed out at 200.

Jan 22, 08 - 05:36 pm Comment from: Jmaie

And people were worried

Jan 22, 08 - 05:37 pm Comment from: shux

I just added to my shares at $136.

Jan 22, 08 - 05:38 pm Comment from: jamie

Thats not apples folt everyone is going down, We are heading for a crash

Jan 22, 08 - 05:38 pm Comment from: Ampar

"net quarterly profit of $1.58 billion"

NICE ! ! !
Way to beat that Street!
Keep the cool stuff coming.



(AAPL is at 155.64.)

Jan 22, 08 - 05:38 pm Comment from: MeanGuy

THAT doesn't suck, but the extended hours is WAYYYYY down, what the hell is wrong with people?

Jan 22, 08 - 05:39 pm Comment from: GmanMac

The whole market is in free fall right now.

Share price isn't indicative of anything right now.

Jan 22, 08 - 05:40 pm Comment from: Ampar

AAPL: After Hours: 158.00 +2.36 (1.52%) Jan 22 4:24pm ET

Jan 22, 08 - 05:43 pm Comment from: Jubei

Buy Buy Buy Buy now! grin

Jan 22, 08 - 05:43 pm Comment from: Uh Oh

Told you bozos to sell weeks ago when it was 200.

Jan 22, 08 - 05:44 pm Comment from: MeanGuy

Hunh, I don't know where that figure is coming from, I'm showing 139-ish.....

Jan 22, 08 - 05:44 pm Comment from: rf12

Are you kidding? Buy what?
As of 4:44 pm EST, AAPL is at $139.71 and falling!

Jan 22, 08 - 05:45 pm Comment from: Macromancer

"As of 3:35 PM CST, Apple is down to $135.84."

I dont know what ticker you're watching but according to Marketwatch, it never got below 146 today.

If you got some at 136, good for you.

Jan 22, 08 - 05:45 pm Comment from: KenC

Wow, just a little better than I expected, $1.70eps, on earnings; however, the shipment numbers are lower than expected. In other words, gross margins were great, best ever.

2.3M Macs is great, but 2.5M would have been a blowout.

22M iPods is pretty flat from last Xmas, and I was expecting 25M iPods.

2.3M iPhones is double the previous quarter, which is great, because it's following the iPod pattern of doubling in the Xmas quarter, but I thought they had sold 2.5M or so, based upon Steve's announcement of 4M, but that includes a couple more weeks after the New Year, but still.

I only took a little, 265 shares off the table at $201, and still have 950 shares. I was trying to offload another 350 before earnings but never found a good sell point. Oh, well, right idea, but lack of execution.

Jan 22, 08 - 05:47 pm Comment from: Ampar

And now it's dropping like a rock. Good news always does that for some strange reason. Oh well, time to buy more shares.

AAPL: After Hours: 146.35 -11.10 (-7.05%) - Jan 22, 4:31PM ET

Jan 22, 08 - 05:48 pm Comment from: KenC

@macromancer, I'm guessing he's talking after hours trading, as he mentioned CST, not EST.

I'm showing $141+ and stabilizing/rising at 4.47EST.

Jan 22, 08 - 05:48 pm Comment from: rf12

Note: AAPL closed $155.64 and it is changing hands at $140 at 4:47 pm....a cool 10% drop.

Jan 22, 08 - 05:49 pm Comment from: CheekyGit

@ Macromancer

I'm watching AAPL stock on CNBC right now. It's at $140.95 in extended hours (3:48pm CST).

Jan 22, 08 - 05:50 pm Comment from: TowerTone

This should play out well for Apple.
Good numbers.

Too bad about Heath. Seemed like a good guy.

Jan 22, 08 - 05:51 pm Comment from: Macromancer

After hours trading is voodoo trading. It will open tomorrow right where it ended today. It might slide down towards where it is after hours but they dont open trading the following day where it ends after hours.

Jan 22, 08 - 05:51 pm Comment from: CheekyGit

I'm happy I got out of stocks and into currency trading a year ago.

I can make steady money even in a bad economy.

Jan 22, 08 - 05:54 pm Comment from: R2

HEATH LEDGER IS DEAD!

Jan 22, 08 - 05:55 pm Comment from: Question Please

Does anyone know the number of days it took for AAPL to go from $135 to $200?

I would like to compare that to the very few days it took for it to go from $200 to $135.

Jan 22, 08 - 05:57 pm Comment from: CheekyGit

@ Question Please

Look it up on Google Finance or Yahoo Finance.

Jan 22, 08 - 05:58 pm Comment from: shux

The price bottomed in the $135+ range and immediately bounced back up as the quick buyers took advantage of sellers who don't know a good report when they see one.
AAPL always sandbags on the future guidance. As long as they keep creaming analysts predictions, it's an excellent long term investment on the dips

Jan 22, 08 - 05:59 pm Comment from: Jubei

The Mac is going strong. iPods are still ruling the market. grin

Jan 22, 08 - 05:59 pm Comment from: Ampar

Yes, too bad about Heath. And Suzanne Pleshette who die before she got her star on the Walk of Fame. And oh yes, sorry to the fans and family of Sam the Butcher (Allan Melvin). I hope I didn't leave anyone out.

Jan 22, 08 - 06:02 pm Comment from: Ampar

"After hours trading is voodoo trading."

West African or Haitian? Cool dances.

Jan 22, 08 - 06:05 pm Comment from: CheekyGit

Joker is dead!

I hope the shooting for "The Dark Knight" was done. The trailer for it looks awesome. Heath makes the Joker look very creepy.

Jan 22, 08 - 06:20 pm Comment from: Yours Smugly

Now there's no doubt The Dark Knight will smash the box office. And Ledger's Joker will probably be praised up to the heavens (no pun intended). Do they give Oscars posthumously?

Jan 22, 08 - 06:40 pm Comment from: Vista Pracova

Mr. Jobs, you could sell much more if you were not so focused on the US, 45% of the earning came from the rest of the world and your presence anywhere other than the UK is close to none. Imagine the possibilities if you had a really global, proper, presence. We want to give you our money! But we like, in fact demand, to be treated properly.

Jan 22, 08 - 06:43 pm Comment from: Mac+

Great revenue. This is only the beginning. Listen to Steve:

"We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks."

Next year, around this time, Apple will be selling 5 millions Macs per quarter!!!!!!!!!!

Jan 22, 08 - 06:45 pm Comment from: KenC

Apple is trading very slowly now in after-hours. I just listened to the conference call, and it seems that they underestimated Mac sales, so that inventories are below what they expect, 4 to 6 weeks worth, and so, the 2.3M Macs shipped could have been higher, if they had kept inventories stable.

Also, the cash is up to $18.5B, and accumulated iPhone revenues are now up to $1.1B, since they count revenues over 8 quarters, as opposed to realizing it all at once.

The gross margin of 34.7% is just sick! I remember when it bounced around between 27 and 29% for ages. Now, they're modeling in a margin of 32% going forward. I guess NAND flash ram is going to stay cheap.

Jan 22, 08 - 07:19 pm Comment from: joe

apple never hit 135, what crack are u smokin?
its low was 146

Jan 22, 08 - 07:28 pm Comment from: LorD1776

Analysts are even more scummy than lawyers. Worthless slimeballs.

Jan 23, 08 - 04:02 am Comment from: MacSheikh

The future is in Asia, Steve. India, China, South-East Asia and the rest. You gotta move way faster than you are now.

As for AAPL dropping like flies, no worries - and i'll be buying up more along the way! grin

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