1999 – Apple did it again. Not only did they turn a profit, but they exceeded analyst’s expectations. This is a brief summary of those results.

1. Sales: $1.56 billion, up 11% from $1.4 billion in 1998 Q3.
2. Net profit: $203 million, up 101% from $101 million in 1998 Q3 (this includes one-time gain of $89 million from sale of ARM stock).
3. Earnings: $114 million, up 52% from $75 million in 1998 Q3.
   (Includes one-time gain of $89 million from sale of ARM stock.)
4. Overall unit sales increased 40% over 1998 Q3 (last quarter before the iMac). Compare this with a 21% industry growth rate.
5. Gross margin increased from 25.7% to 27.4%.
6. Unit shipments: 905,000 (2,676,000 so far in FY 1999).
7. iMacs shipped: 487,000.
8. Cash reserves: $3.1 billion.
9. International sales: 45% of total sales.
10. Japan sales up 98%.
11. American sales up 28%.

That’s seven consecutive profitable quarters for Apple. Apple stock is at a six-year high. And the Consumer Portable hasn’t even been released yet, let alone the next generation iMac and Power Mac.

Further Reading

• Apple reports third quarter profit of $203 million, Apple Computer
• Apple fiscal Q3 earnings report, AAPL statistics, Apple Investors
• Apple posts higher than expected profits, ZDNet
• Apple earnings announcement update, MOSR
• Apple posts $203 million profit, MacCentral
• Apple profit: $203 million, MacWeek
• MacNN report, 7/14/99
• iMac helps Apple beat the street in the third quarter, Infoworld
• Apple beats expectations, announces buyback, Cnet
• Apple dishes up shiny 3Q, CNNfn
• Strong iMac sales boost Apple results, CBS MarketWatch