Apple Computer Inc. reported a first-quarter loss

[Fabian Ius]

Jan. 15, 2003. 06:55 PM 
Apple posts $8M Q1 loss despite gain in sales

SAN JOSE, Calif. (AP) — Blaming restructuring charges, Apple Computer Inc. reported a first-quarter loss despite a 7 per cent gain in sales.

For the three months ended Dec. 28, the Cupertino, Calif.-based computer maker lost $8 million (all figures U.S.), or 2 cents per share, on revenue of $1.47 billion. In the year-ago period, Apple reported net income of $38 million, or 11 cents a share,
on $1.38 billion in sales.

Excluding a $17 million after-tax restructuring charge and a $2 million after-tax accounting transition adjustment, the company would have earned $11 million, or 3 cents per share.

Analysts surveyed by Thomson First Call had projected earnings of 3 cents a share on revenue of $1.5 billion.

Apple shipped 743,000 Macintosh computers during the quarter, about the same as it shipped in the same period one year ago.

"We're going to keep investing through this downturn and continue to move our products and distribution channels ever further ahead of our competitors, so that when the economy rebounds we will be positioned for growth," Apple chief executive Steve Jobs
said in a statement.

Apple is staking its future on a "digital lifestyle" strategy, an effort to turn the Apple into an entertainment and creativity centre. Jobs introduced new lightweight laptops last week and touted a software suite called iLife, which will debut later
this month for $49.

The new software includes updates of popular Apple software titles such as iPhoto, iMovie, iTunes and iDVD. Users can e-mail home videos with their favourite music playing in the background, or integrate photos into video projects.

Executives hope iLife will boost market share of the Macintosh operating system, particularly the newest Mac OS X, and entice customers to switch from personal computers using Microsoft Windows.

Before it released earnings, Apple shares (Nasdaq: AAPL) lost 18 cents to close at $14.43 on the Nasdaq stock market. In the extended session, it lost another 16 cents.