Apple Posts $111 Million Profit — Apple Computer announced a net profit of $111 million on $1.34 billion in revenue for its fourth fiscal quarter, with earnings of $601 million on $6.1 billion in revenue for the 1999 fiscal year. Apple’s Q4 results were down 14 percent from the same quarter a year ago, but Apple’s 1999 revenue and earnings were up from 1998, which had earnings of $309 million on $5.9 billion in revenue. Apple’s gross margin for its fourth quarter was a healthy 28.7 percent, but the Q4 earnings reflect one-time gains from restructuring and seemingly perpetual sales of shares in ARM Holdings plc.; without these, Apple’s net profit would have been $90 million. International sales accounted for only 35 percent of Apple’s revenues this quarter. Although Apple’s results technically beat analysts’ expectations – after issuing a warning a few weeks earlier to reduce those expectations – Apple attributes the revenue slump to costs associated with product transitions and limited availability of the PowerPC G4 processor from Motorola. Rampant rumors of new systems were another factor, causing some customers to put off purchasing decisions. Apple says it expects a strong December quarter. [GD]
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