EX-99.1 2 d383855dex991.htm TEXT OF PRESS RELEASE ISSUED BY APPLE INC. ON JULY 24, 2012 Text of press release issued by Apple Inc. on July 24, 2012

Exhibit 99.1

Apple Reports Third Quarter Results

17 Million iPads Sold

Board Declares Quarterly Dividend of $2.65 per Common Share

CUPERTINO, California—July 24, 2012—Apple® today announced financial results for its fiscal 2012 third quarter ended June 30, 2012. The Company posted quarterly revenue of $35.0 billion and quarterly net profit of $8.8 billion, or $9.32 per diluted share. These results compare to revenue of $28.6 billion and net profit of $7.3 billion, or $7.79 per diluted share, in the year-ago quarter. Gross margin was 42.8 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

The Company sold 26.0 million iPhones in the quarter, representing 28 percent unit growth over the year-ago quarter. Apple sold 17.0 million iPads during the quarter, an 84 percent unit increase over the year-ago quarter. The Company sold 4.0 million Macs during the quarter, a two percent unit increase over the year-ago quarter. Apple sold 6.8 million iPods, a 10 percent unit decline from the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on August 16, 2012, to stockholders of record as of the close of business on August 13, 2012.

“We’re thrilled with record sales of 17 million iPads in the June quarter,” said Tim Cook, Apple’s CEO. “We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.”

“We’re continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65.”

Apple will provide live streaming of its Q3 2012 financial results conference call beginning at 2:00 p.m. PDT on July 24, 2012 at www.apple.com/quicktime/qtv/earningsq312. 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 diluted 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, its Forms 10-Q for the fiscal quarters ended December 31, 2011 and March 31, 2012, and its Form 10-Q for the quarter ended June 30, 2012 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)


     Three Months Ended      Nine Months Ended  
     June 30,
     June 25,
     June 30,
     June 25,

Net sales

   $ 35,023       $ 28,571       $ 120,542       $ 79,979   

Cost of sales (1)

     20,029         16,649         66,281         47,541   













Gross margin

     14,994         11,922         54,261         32,438   













Operating expenses:


Research and development (1)

     876         628         2,475         1,784   

Selling, general and administrative (1)

     2,545         1,915         7,489         5,574   













Total operating expenses

     3,421         2,543         9,964         7,358   













Operating income

     11,573         9,379         44,297         25,080   

Other income and expense

     288         172         573         334   













Income before provision for income taxes

     11,861         9,551         44,870         25,414   

Provision for income taxes

     3,037         2,243         11,360         6,115   













Net income

   $ 8,824       $ 7,308       $ 33,510       $ 19,299   













Earnings per common share:



   $ 9.42       $ 7.89       $ 35.89       $ 20.91   


   $ 9.32       $ 7.79       $ 35.48       $ 20.63   

Shares used in computing earnings per share:



     936,596         926,108         933,672         922,917   


     947,059         937,810         944,440         935,688   

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


Cost of sales

   $ 70       $ 52       $ 196       $ 155   

Research and development

   $ 172       $ 119       $ 500       $ 336   

Selling, general and administrative

   $ 206       $ 113       $ 596       $ 379   

Apple Inc.


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


     June 30,
     September 24,



Current assets:


Cash and cash equivalents

   $ 7,945       $ 9,815   

Short-term marketable securities

     19,709         16,137   

Accounts receivable, less allowances of $94 and $53, respectively

     7,657         5,369   


     1,122         776   

Deferred tax assets

     2,309         2,014   

Vendor non-trade receivables

     6,641         6,348   

Other current assets

     6,560         4,529   







Total current assets

     51,943         44,988   

Long-term marketable securities

     89,567         55,618   

Property, plant and equipment, net

     10,487         7,777   


     1,132         896   

Acquired intangible assets, net

     4,329         3,536   

Other assets

     5,438         3,556   







Total assets

   $ 162,896       $ 116,371   









Current liabilities:


Accounts payable

   $ 16,808       $ 14,632   

Accrued expenses

     10,430         9,247   

Deferred revenue

     5,822         4,091   







Total current liabilities

     33,060         27,970   

Deferred revenue – non-current

     2,530         1,686   

Other non-current liabilities

     15,560         10,100   







Total liabilities

     51,150         39,756   







Commitments and contingencies


Shareholders’ equity:


Common stock, no par value; 1,800,000 shares authorized; 937,266 and 929,277 shares issued and outstanding, respectively

     15,573         13,331   

Retained earnings

     95,641         62,841   

Accumulated other comprehensive income

     532         443   







Total shareholders’ equity

     111,746         76,615   







Total liabilities and shareholders’ equity

   $ 162,896       $ 116,371   








Apple Inc.


(In millions)


     Nine Months Ended  
     June 30,
    June 25,

Cash and cash equivalents, beginning of the period

   $ 9,815      $ 11,261   







Operating activities:


Net income

     33,510        19,299   

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


Depreciation, amortization and accretion

     2,296        1,271   

Share-based compensation expense

     1,292        870   

Deferred income tax expense

     4,066        2,232   

Changes in operating assets and liabilities:


Accounts receivable, net

     (2,278     (592


     (346     162   

Vendor non-trade receivables

     (293     (955

Other current and non-current assets

     (3,238     (1,551

Accounts payable

     2,450        2,480   

Deferred revenue

     2,575        1,276   

Other current and non-current liabilities

     1,686        2,608   







Cash generated by operating activities

     41,720        27,100   







Investing activities:


Purchases of marketable securities

     (121,091     (75,133

Proceeds from maturities of marketable securities

     10,344        16,396   

Proceeds from sales of marketable securities

     73,140        34,301   

Payments made in connection with business acquisitions, net of cash acquired

     (350     0   

Payments for acquisition of property, plant and equipment

     (4,834     (2,615

Payments for acquisition of intangible assets

     (1,067     (266


     (56     34   







Cash used in investing activities

     (43,914     (27,283







Financing activities:


Proceeds from issuance of common stock

     433        577   

Excess tax benefits from equity awards

     1,036        915   

Taxes paid related to net share settlement of equity awards

     (1,145     (479







Cash generated by financing activities

     324        1,013   







(Decrease)/increase in cash and cash equivalents

     (1,870     830   







Cash and cash equivalents, end of the period

   $ 7,945      $ 12,091   







Supplemental cash flow disclosure:


Cash paid for income taxes, net

   $ 5,901      $ 2,563