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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