EX-99.1 2 d287503dex991.htm TEXT OF PRESS RELEASE Text of press release

Exhibit 99.1

Apple Reports First Quarter Results

Highest Quarterly Revenue and Earnings Ever

All-Time Record iPhone, iPad and Mac Sales

CUPERTINO, California—January 24, 2012—Apple® today announced financial results for its fiscal 2012 first quarter which spanned 14 weeks and ended December 31, 2011. The Company posted record quarterly revenue of $46.33 billion and record quarterly net profit of $13.06 billion, or $13.87 per diluted share. These results compare to revenue of $26.74 billion and net quarterly profit of $6 billion, or $6.43 per diluted share, in the year-ago quarter. Gross margin was 44.7 percent compared to 38.5 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue.

The Company sold 37.04 million iPhones in the quarter, representing 128 percent unit growth over the year-ago quarter. Apple sold 15.43 million iPads during the quarter, a 111 percent unit increase over the year-ago quarter. The Company sold 5.2 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter. Apple sold 15.4 million iPods, a 21 percent unit decline from the year-ago quarter.

“We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs,” said Tim Cook, Apple’s CEO. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline.”

“We are very happy to have generated over $17.5 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2012, which will span 13 weeks, we expect revenue of about $32.5 billion and we expect diluted earnings per share of about $8.50.”

Apple will provide live streaming of its Q1 2012 financial results conference call beginning at 2:00 p.m. PST on January 24, 2012 at www.apple.com/quicktime/qtv/earningsq112. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 24, 2011 and its Form 10-Q for the fiscal quarter ended December 31, 2011 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

Press Contact:

Steve Dowling



(408) 974-1896

Investor Relations Contacts:

Nancy Paxton



(408) 974-5420

Joan Hoover



(408) 974-4570

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

© 2012 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.


(In millions, except number of shares which are reflected in thousands and per share amounts)


September 30, September 30,
     Three Months Ended  
     December 31,
     December 25,

Net sales

   $ 46,333       $ 26,741   

Cost of sales (1)

     25,630         16,443   







Gross margin

     20,703         10,298   







Operating expenses:


Research and development (1)

     758         575   

Selling, general and administrative (1)

     2,605         1,896   







Total operating expenses

     3,363         2,471   







Operating income

     17,340         7,827   

Other income and expense

     137         136   







Income before provision for income taxes

     17,477         7,963   

Provision for income taxes

     4,413         1,959   







Net income

   $ 13,064       $ $6,004   







Earnings per common share:



   $ 14.03       $ 6.53   


   $ 13.87       $ 6.43   

Shares used in computing earnings per share:



     931,041         919,294   


     941,572         933,154   

(1)  Includes share-based compensation expense as follows:


Cost of sales

   $ 63       $ 52   

Research and development

   $ 160       $ 113   

Selling, general and administrative

   $ 197       $ 134   

Apple Inc.


(In millions, except number of shares which are reflected in thousands)


September 30, September 30,
     December 31,
     September 24,

Current assets:


Cash and cash equivalents

   $ 10,310       $ 9,815   

Short-term marketable securities

     19,846         16,137   

Accounts receivable, less allowances of $78 and $53, respectively

     8,930         5,369   


     1,236         776   

Deferred tax assets

     1,937         2,014   

Vendor non-trade receivables

     7,554         6,348   

Other current assets

     4,958         4,529   







Total current assets

     54,771         44,988   

Long-term marketable securities

     67,445         55,618   

Property, plant and equipment, net

     7,816         7,777   


     896         896   

Acquired intangible assets, net

     3,472         3,536   

Other assets

     4,281         3,556   







Total assets

   $ 138,681       $ 116,371   







Current liabilities:


Accounts payable

   $ 18,221       $ 14,632   

Accrued expenses

     11,500         9,247   

Deferred revenue

     4,886         4,091   







Total current liabilities

     34,607         27,970   

Deferred revenue – non-current

     2,187         1,686   

Other non-current liabilities

     11,833         10,100   







Total liabilities

     48,627         39,756   







Commitments and contingencies


Shareholders’ equity:


Common stock, no par value; 1,800,000 shares authorized; 932,214 and 929,277 shares issued and outstanding, respectively

     13,961         13,331   

Retained earnings

     75,709         62,841   

Accumulated other comprehensive income

     384         443   







Total shareholders’ equity

     90,054         76,615   







Total liabilities and shareholders’ equity

   $ 138,681       $ 116,371   







Apple Inc.


(In millions)


September 30, September 30,
     Three Months Ended  
     December 31,
    December 25,

Cash and cash equivalents, beginning of the period

   $ 9,815      $ 11,261   







Operating activities:


Net income

     13,064        6,004   

Adjustments to reconcile net income to cash generated by operating activities:


Depreciation, amortization and accretion

     721        356   

Share-based compensation expense

     420        299   

Deferred income tax expense

     1,456        823   

Changes in operating assets and liabilities:


Accounts receivable, net

     (3,561     (517


     (460     166   

Vendor non-trade receivables

     (1,206     (433

Other current and non-current assets

     (962     (558

Accounts payable

     4,314        2,346   

Deferred revenue

     1,296        634   

Other current and non-current liabilities

     2,472        653   







Cash generated by operating activities

     17,554        9,773   







Investing activities:


Purchases of marketable securities

     (40,175     (19,575

Proceeds from maturities of marketable securities

     3,038        3,279   

Proceeds from sales of marketable securities

     21,472        6,853   

Payments for acquisition of property, plant and equipment

     (1,321     (1,214

Payments for acquisition of intangible assets

     (108     (49


     (34     (23







Cash used in investing activities

     (17,128     (10,729







Financing activities:


Proceeds from issuance of common stock

     91        208   

Excess tax benefits from equity awards

     333        454   

Taxes paid related to net share settlement of equity awards

     (355     (233







Cash generated by financing activities

     69        429   







Increase/(decrease) in cash and cash equivalents

     495        (527







Cash and cash equivalents, end of the period

   $ 10,310      $ 10,734   







Supplemental cash flow disclosure:


Cash paid for income taxes, net

   $ 1,474      $ 826