Apple expects to post loss this quarter: painful news for stock; big layoffs are hinted
Article Abstract:
Apple anticipates a loss for the 1st qtr of FY 1995 and attributes the loss to price cuts that fierce competition forced the company to make at the low-end of its product lines. News of the loss sent Apple stock down $3 to close at $34.25, near its 52-week low. The Christmas quarter traditionally brings solid sales and profits, and the loss will be Apple's first ever for that time of year. Apple has increased sales, but profit margins will fall below the 20.7% gross profit margin made in the previous quarter. Apple still suffers from a lack of chips, which has limited its ability to get high-end, high-profit machines to market. The company may layoff as many as 2,500 of its 14,500 as a result of the poor quarter. Analysts were surprised by the news, since they had expected a profit, and some believe the news signals that company executives missed their only opportunity to turn the company around.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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Apple reports quarterly loss and sets layoffs
Article Abstract:
Apple announces losses of $69 million for 1st qtr FY 1996 and plans to restructure and lay off 1,300 employees, but analysts believe the moves are not enough to counter the company's sinking profit and market share. Apple says the company will take a charge of at least $125 million in 2nd qtr 1996 to cover the cost of laying off 7.4% of its workforce, and the company already anticipates a 2nd qtr loss before the charge. The $69 million loss comes when Apple is making record sales and revenues, with 1st qtr FY 1996 revenues totaling $3.15 billion, up 11% from the $2.83 billion made in the same quarter the previous year. In contrast, earnings for 1st qtr FY 1996 were $188 million. Apple attributes its losses to price cutting due to competition and says that it plans to pursue more licensing agreements for its operating system and refocus its products line, although details were sparse.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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