The Telegraph
Since 1st March, 1999
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Apple revenue remains flat

San Francisco, Oct. 17: Fighting off a deepening technology recession, Apple Computer on Wednesday reported essentially flat revenue for its fourth quarter of 2002. But a one-time write-down of investments resulted in a net loss for the quarter.

Apple told the financial community that it expected only a slight increase in revenue for its next quarter, which includes the holiday sales season.

“There’s uncertainty in the economy and the PC industry and the possibility of war,” said Fred Anderson, the company’s chief financial officer. “I don’t see there is any point in being optimistic at the moment. We’re planning for the worst and hopefully things will be better.”

Based on a series of one-time charges, Apple reported a net loss of $ 45 million or 13 cents per share for the quarter. But excluding the nonrecurring charges, the company achieved earnings or $ 7 million or 2 cents per share, which was generally in line with Wall Street analysts’ expectations. For the same quarter in 2001 Apple reported net profit of $ 66 million or 19 cents a share.

For the year, Apple reported net earnings of $ 65 million on revenues of $ 5.74 billion.

The nonrecurring charges for the quarter included a write-down of equity investments of $ 49 million, a restructuring charge of $ 4 million and a research and development charge of $ 4 million. Those charges were offset by a reversal of an executive compensation bonus of $ 2 million. The company did not disclose the source of its investment write-downs but analysts said they believed they were related to an investment by Apple in EarthLink, an internet access provider.

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