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Text of press release issued by Apple Inc. on October 25, 2012

Exhibit 99.1

Apple Reports Fourth Quarter Results

26.9 Million iPhones Sold; Record Fourth Quarter Revenue and Profit

Board Declares Quarterly Dividend of $2.65 per Common Share

CUPERTINO, California—October 25, 2012—Apple® today announced financial results for its fiscal 2012 fourth quarter ended September 29, 2012. The Company posted quarterly revenue of $36.0 billion and quarterly net profit of $8.2 billion, or $8.67 per diluted share. These results compare to revenue of $28.3 billion and net profit of $6.6 billion, or $7.05 per diluted share, in the year-ago quarter. Gross margin was 40.0 percent compared to 40.3 percent in the year-ago quarter. International sales accounted for 60 percent of the quarter’s revenue.

The Company sold 26.9 million iPhones in the quarter, representing 58 percent unit growth over the year-ago quarter. Apple sold 14.0 million iPads during the quarter, a 26 percent unit increase over the year-ago quarter. The Company sold 4.9 million Macs during the quarter, a 1 percent unit increase over the year-ago quarter. Apple sold 5.3 million iPods, a 19 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 November 15, 2012, to shareholders of record as of the close of business on November 12, 2012.

“We’re very proud to end a fantastic fiscal year with record September quarter results,” said Tim Cook, Apple’s CEO. “We’re entering this holiday season with the best iPhone, iPad, Mac and iPod products ever, and we remain very confident in our new product pipeline.”

“We’re pleased to have generated over $41 billion in net income and over $50 billion in operating cash flow in fiscal 2012,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2013, we expect revenue of about $52 billion and diluted earnings per share of about $11.75.”

Apple will provide live streaming of its Q4 2012 financial results conference call beginning at 2:00 p.m. PDT on October 25, 2012 at www.apple.com/quicktime/qtv/earningsq412. 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; March 31, 2012; and June 30, 2012; and its Form 10-K for the year ended September 29, 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

Apple

dowling@apple.com

(408) 974-1896

Investor Relations Contacts:

Nancy Paxton

Apple

paxton1@apple.com

(408) 974-5420

Joan Hoover

Apple

hoover1@apple.com

(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.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

                                                                                                   
     Three Months Ended      Twelve Months Ended  
     September 29,
2012
    September 24,
2011
     September 29,
2012
     September 24,
2011
 

Net sales

   $ 35,966      $ 28,270       $ 156,508       $ 108,249   

Cost of sales (1)

     21,565        16,890         87,846         64,431   
  

 

 

   

 

 

    

 

 

    

 

 

 

Gross margin

     14,401        11,380         68,662         43,818   
  

 

 

   

 

 

    

 

 

    

 

 

 

Operating expenses:

          

Research and development (1)

     906        645         3,381         2,429   

Selling, general and administrative (1)

     2,551        2,025         10,040         7,599   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total operating expenses

     3,457        2,670         13,421         10,028   
  

 

 

   

 

 

    

 

 

    

 

 

 

Operating income

     10,944        8,710         55,241         33,790   

Other income/(expense), net

     (51     81         522         415   
  

 

 

   

 

 

    

 

 

    

 

 

 

Income before provision for income taxes

     10,893        8,791         55,763         34,205   

Provision for income taxes

     2,670        2,168         14,030         8,283   
  

 

 

   

 

 

    

 

 

    

 

 

 

Net income

   $ 8,223      $ 6,623       $ 41,733       $ 25,922   
  

 

 

   

 

 

    

 

 

    

 

 

 

Earnings per share:

          

Basic

   $ 8.76      $ 7.13       $ 44.64       $ 28.05   

Diluted

   $ 8.67      $ 7.05       $ 44.15       $ 27.68   

Shares used in computing earnings per share:

          

Basic

     938,343        928,280         934,818         924,258   

Diluted

     948,186        939,517         945,355         936,645   

Cash dividends declared per common share

   $ 2.65      $ 0.00       $ 2.65       $ 0.00   
(1)  Includes share-based compensation expense as follows:   

Cost of sales

   $ 69      $ 45       $ 265       $ 200   

Research and development

   $ 168      $ 114       $ 668       $ 450   

Selling, general and administrative

   $ 211      $ 139       $ 807       $ 518   


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

                                                 
     September 29,
2012
     September 24,
2011
 
ASSETS:      

Current assets:

     

Cash and cash equivalents

   $ 10,746       $ 9,815   

Short-term marketable securities

     18,383         16,137   

Accounts receivable, less allowances of $98 and $53, respectively

     10,930         5,369   

Inventories

     791         776   

Deferred tax assets

     2,583         2,014   

Vendor non-trade receivables

     7,762         6,348   

Other current assets

     6,458         4,529   
  

 

 

    

 

 

 

Total current assets

     57,653         44,988   

Long-term marketable securities

     92,122         55,618   

Property, plant and equipment, net

     15,452         7,777   

Goodwill

     1,135         896   

Acquired intangible assets, net

     4,224         3,536   

Other assets

     5,478         3,556   
  

 

 

    

 

 

 

Total assets

   $ 176,064       $ 116,371   
  

 

 

    

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY:      

Current liabilities:

     

Accounts payable

   $ 21,175       $ 14,632   

Accrued expenses

     11,414         9,247   

Deferred revenue

     5,953         4,091   
  

 

 

    

 

 

 

Total current liabilities

     38,542         27,970   

Deferred revenue – non-current

     2,648         1,686   

Other non-current liabilities

     16,664         10,100   
  

 

 

    

 

 

 

Total liabilities

     57,854         39,756   
  

 

 

    

 

 

 

Commitments and contingencies

     

Shareholders’ equity:

     

Common stock, no par value; 1,800,000 shares authorized; 939,208 and 929,277 shares issued and outstanding, respectively

     16,422         13,331   

Retained earnings

     101,289         62,841   

Accumulated other comprehensive income

     499         443   
  

 

 

    

 

 

 

Total shareholders’ equity

     118,210         76,615   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 176,064       $ 116,371   
  

 

 

    

 

 

 


Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 

                                                 
     Twelve Months Ended  
     September 29,
2012
    September 24,
2011
 

Cash and cash equivalents, beginning of the year

   $ 9,815      $ 11,261   
  

 

 

   

 

 

 

Operating activities:

    

Net income

     41,733        25,922   

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

    

Depreciation and amortization

     3,277        1,814   

Share-based compensation expense

     1,740        1,168   

Deferred income tax expense

     4,405        2,868   

Changes in operating assets and liabilities:

    

Accounts receivable, net

     (5,551     143   

Inventories

     (15     275   

Vendor non-trade receivables

     (1,414     (1,934

Other current and non-current assets

     (3,162     (1,391

Accounts payable

     4,467        2,515   

Deferred revenue

     2,824        1,654   

Other current and non-current liabilities

     2,552        4,495   
  

 

 

   

 

 

 

Cash generated by operating activities

     50,856        37,529   
  

 

 

   

 

 

 

Investing activities:

    

Purchases of marketable securities

     (151,232     (102,317

Proceeds from maturities of marketable securities

     13,035        20,437   

Proceeds from sales of marketable securities

     99,770        49,416   

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

     (350     (244

Payments for acquisition of property, plant and equipment

     (8,295     (4,260

Payments for acquisition of intangible assets

     (1,107     (3,192

Other

     (48     (259
  

 

 

   

 

 

 

Cash used in investing activities

     (48,227     (40,419
  

 

 

   

 

 

 

Financing activities:

    

Proceeds from issuance of common stock

     665        831   

Excess tax benefits from equity awards

     1,351        1,133   

Dividends and dividend equivalent rights paid

     (2,488     0   

Taxes paid related to net share settlement of equity awards

     (1,226     (520
  

 

 

   

 

 

 

Cash (used in)/generated by financing activities

     (1,698     1,444   
  

 

 

   

 

 

 

Increase/(decrease) in cash and cash equivalents

     931        (1,446
  

 

 

   

 

 

 

Cash and cash equivalents, end of the year

   $ 10,746      $ 9,815   
  

 

 

   

 

 

 

Supplemental cash flow disclosure:

    

Cash paid for income taxes, net

   $ 7,682      $ 3,338   
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