Apple nearly doubles its net income


Published: Thursday, January 19, 2006 at 6:01 a.m.
Last Modified: Wednesday, January 18, 2006 at 10:17 p.m.
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The new Apple iPod Nano, center, is shown next to the Apple Shuffle, left, and regular iPod, right.

The Associated Press
Building on continued momentum of its iPod players, Apple Computer Inc. nearly doubled its net income on record revenue and easily topped Wall Street expectations. But a soft forecast for the coming quarter drove Apple's shares down more than 4 percent in extended trading Wednesday.
For the second fiscal quarter, Apple said it expects revenue of about $4.3 billion and earnings per share of 38 cents, including an estimated non-cash share-based compensation expense of 4 cents a share.
Analysts were expecting earnings of 48 cents a share on revenue of $4.6 billion.
However, Apple executives were ebullient Wednesday in their comments about the last quarter. "We are thrilled to report the best quarter in Apple's history," said Steve Jobs, Apple's chief executive.
For the three months ended Dec. 31, the maker of Macintosh computers and iPods said Wednesday it earned $565 million, or 65 cents per share, up from $295 million, or 35 cents a share in the year-ago quarter.
Apple revenues soared to $5.75 billion up from $3.49 billion a year ago.
Analysts on average expected earnings of 61 cents per share on sales of $5.47 billion, according to a Thomson Financial poll. The forecast included a non-cash, share-based compensation expense of 3 cents per share.
Apple said it sold 14 million iPods during the holiday quarter - nearly three times as many units as in the same period a year ago. It shipped 1.25 million Mac computers in the quarter, up slightly from 1.05 million units a year ago. The company has been working to cut its inventory ahead of new Mac computer products, including the first Apple machines with Intel chips, released last week.
Apple shares slumped 3.7 percent in late-session activity, down $3.05, after the report was released. Earlier, the stock fell 2.6 percent, or $2.22, to close at $82.49 on the Nasdaq Stock Market, dragged down by investor disappointment from lackluster results at Yahoo Inc. and missed expectations from Intel Corp.
Still, Apple's share price more than doubled in 2005 as it released one new product after another, bringing its fiscal 2005 revenue to an all-time high of nearly $14 billion.

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