Apple Computer reported revenue of $1.87 billion for its fourth quarter, ended Sept. 30, $180 million less than anticipated. Apple's $170 million in quarterly profit yielded earnings per share of 47 cents, shattering analyst expectations of 31 cents, but the figure included $62 million from the sale of 7.1 million shares of ARM Holdings plc. Excluding that investment gain, the per-share figure was 30 cents.
Still, for the year ended Sept. 30, Apple reported a profit of $786 million, or $2.l8 per diluted share, on revenue of $7.98 billion, compared with a profit of $601 million, or $1.81, on revenue of $6.13 billion.
CEO Steve Jobs on Wednesday blamed the disappointing quarter on:
-Sluggish sales of the Power Mac G4 Cube
-A gap between the chip speeds in Apple's Macintosh products and PCs
-An ill-timed strategy decision to eliminate third-party sales agents in the education market
Gartner Group analyst Martin Reynolds says Apple hasn't really done anything wrong. "Apple isn't the only company that's bummed about the state of the market," Reynolds says, citing poor earnings for several PC makers.
Jobs offered little optimism for the upcoming holiday season, predicting continued struggles. The company has lowered revenue expectations for the next quarter to $1.6 billion, and has frozen most hiring. "Apple is going to have two disappointing-but profitable-quarters," Jobs said. "Our plan is to be back on track for January."
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.