Apple just announced their first quarter 2011 results and they are Apple’s best results yet. Apple sold: 4.13M Macs, 16.24M iPhones, 19.45M iPods, and 7.33M iPads. This compares to a $15.68 billion first quarter 2010.

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced financial results for its fiscal 2011 first quarter ended December 25, 2010. The Company posted record revenue of $26.74 billion and record net quarterly profit of $6 billion, or $6.43 per diluted share. These results compare to revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share, in the year-ago quarter. Gross margin was 38.5 percent compared to 40.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The Company sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Apple sold 19.45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. The Company also sold 7.33 million iPads during the quarter.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Steve Jobs, Apple’s CEO. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”

Apple’s iPod sales declines 7% overall from Q1 2010 but the earnings are still way up do to the substantial growth of the iPad and a 23% increase on Macs and a whopping 86% increase for the iPhone. Official documents are after the break.

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share amounts which are reflected in thousands and per share amounts)
Three Months Ended
December 25, 2010 December 26, 2009
Net sales $ 26,741 $ 15,683
Cost of sales (1) 16,443 9,272
Gross margin 10,298 6,411
Operating expenses:
Research and development (1) 575 398
Selling, general and administrative (1) 1,896 1,288
Total operating expenses 2,471 1,686
Operating income 7,827 4,725
Other income and expense 136 33
Income before provision for income taxes 7,963 4,758
Provision for income taxes 1,959 1,380
Net income $ 6,004 $ 3,378
Earnings per common share:
Basic $ 6.53 $ 3.74
Diluted $ 6.43 $ 3.67
Shares used in computing earnings per share:
Basic 919,294 903,542
Diluted 933,154 919,783
(1) Includes stock-based compensation expense as follows:
Cost of sales $ 52 $ 37
Research and development $ 113 $ 74
Selling, general and administrative $ 134 $ 94
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share amounts)
December 25, 2010 September 25, 2010
ASSETS:
Current assets:
Cash and cash equivalents $ 10,734 $ 11,261
Short-term marketable securities 16,243 14,359
Accounts receivable, less allowances of $62 and $55, respectively 6,027 5,510
Inventories 885 1,051
Deferred tax assets 1,724 1,636
Vendor non-trade receivables 4,847 4,414
Other current assets 3,467 3,447
Total current assets 43,927 41,678
Long-term marketable securities 32,730 25,391
Property, plant and equipment, net 5,868 4,768
Goodwill 741 741
Acquired intangible assets, net 522 342
Other assets 2,954 2,263
Total assets $ 86,742 $ 75,183
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable $ 14,301 $ 12,015
Accrued expenses 5,953 5,723
Deferred revenue 3,541 2,984
Total current liabilities 23,795 20,722
Deferred revenue – non-current 1,216 1,139
Other non-current liabilities 7,065 5,531
Total liabilities 32,076 27,392
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value; 1,800,000,000 shares authorized; 921,035,475 and 915,970,050 shares issued and outstanding, respectively 11,502 10,668
Retained earnings 43,050 37,169
Accumulated other comprehensive income/(loss) 114 (46 )
Total shareholders’ equity 54,666 47,791
Total liabilities and shareholders’ equity $ 86,742 $ 75,183
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Three Months Ended
December 25, 2010 December 26, 2009
Cash and cash equivalents, beginning of the period $ 11,261 $ 5,263
Operating activities:
Net income 6,004 3,378
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation, amortization and accretion 356 209
Stock-based compensation expense 299 205
Deferred income tax expense 823 425
Changes in operating assets and liabilities:
Accounts receivable, net (517 ) 271
Inventories 166 (121 )
Vendor non-trade receivables (433 ) (95 )
Other current and non-current assets (558 ) (369 )
Accounts payable 2,346 956
Deferred revenue 634 606
Other current and non-current liabilities 653 316
Cash generated by operating activities 9,773 5,781
Investing activities:
Purchases of marketable securities (19,575 ) (12,922 )
Proceeds from maturities of marketable securities 3,279 6,216
Proceeds from sales of marketable securities 6,853 3,199
Payments for acquisition of property, plant and equipment (1,214 ) (376 )
Payments for acquisition of intangible assets (49 ) (5 )
Other (23 ) (70 )
Cash used in investing activities (10,729 ) (3,958 )
Financing activities:
Proceeds from issuance of common stock 208 374
Excess tax benefits from stock-based compensation 454 252
Taxes paid related to net share settlement of equity awards (233 ) (103 )
Cash generated by financing activities 429 523
(Decrease)/increase in cash and cash equivalents (527 ) 2,346
Cash and cash equivalents, end of the period $ 10,734 $ 7,609
Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 826 $ 980
Apple Inc.
Q1 2011 Unaudited Summary Data
Q4 2010 Q1 2010 Q1 2011
Sequential Change Year/Year Change
Operating Segments CPU

Units K

Revenue

$M

CPU

Units K

Revenue

$M

CPU

Units K

Revenue

$M

CPU Units Revenue CPU Units Revenue
Americas 1,460 $ 7,186 1,187 $ 6,092 1,360 $ 9,218 – 7 % 28 % 15 % 51 %
Europe 978 5,458 1,068 5,024 1,245 7,256 27 % 33 % 17 % 44 %
Japan 118 1,401 105 783 162 1,433 37 % 2 % 54 % 83 %
Asia Pacific 455 2,732 313 1,813 516 4,987 13 % 83 % 65 % 175 %
Retail 874 3,566 689 1,971 851 3,847 – 3 % 8 % 24 % 95 %
Total Operating Segments 3,885 $ 20,343 3,362 $ 15,683 4,134 $ 26,741 6 % 31 % 23 % 71 %
Sequential Change Year/Year Change
Product Summary Units K Revenue

$M

Units K Revenue

$M

Units K Revenue

$M

Units Revenue Units Revenue
Desktops (1) 1,242 $ 1,676 1,234 $ 1,692 1,227 $ 1,731 – 1 % 3 % – 1 % 2 %
Portables (2) 2,643 3,194 2,128 2,758 2,907 3,699 10 % 16 % 37 % 34 %
Subtotal CPUs 3,885 4,870 3,362 4,450 4,134 5,430 6 % 11 % 23 % 22 %
iPod 9,051 1,477 20,970 3,391 19,446 3,425 115 % 132 % – 7 % 1 %
Other Music Related Products and Services (3) 1,243 1,164 1,431 15 % 23 %
iPhone and Related Products and Services (4) 14,102 8,822 8,737 5,578 16,235 10,468 15 % 19 % 86 % 88 %
iPad and Related Products and Services (5) 4,188 2,792 0 0 7,331 4,608 75 % 65 % N/M N/M
Peripherals and Other Hardware 477 469 593 24 % 26 %
Software, Service and Other Sales 662 631 786 19 % 25 %
Total Apple $ 20,343 $ 15,683 $ 26,741 31 % 71 %
(1) Includes iMac, Mac mini, Mac Pro and Xserve product lines.
(2) Includes MacBook, MacBook Air and MacBook Pro product lines.
(3) Includes iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories.
(4) Includes recognized revenue from iPhone sales, carrier agreements, services, and Apple-branded and third-party iPhone accessories.
(5) Includes recognized revenue from iPad sales, services, and Apple-branded and third-party iPad accessories.
N/M: Not Meaningful K = Units in thousands $M = Amounts in millions

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