Sign in or join
or
Join us
Didn't receive confirmation?
Thanks for registering. Please click on the confirm link in the email we just sent you.
Continue
Reset password
Resend confirmation
Post as Guest
+
Be part of the collaborative process!

Add a note by highlighting text or Replying to an existing note.

Okay
+
Be part of the collaborative process!

Add a note by highlighting text or Replying to an existing note.

Okay
Exhibit


Exhibit 99.1


Apple Reports Fourth Quarter Results

Services Revenue Grows 24% to All-Time Quarterly Record of $6.3 Billion

CUPERTINO, California - October 25, 2016 - Apple® today announced financial results for its fiscal 2016 fourth quarter ended September 24, 2016. The Company posted quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share. These results compare to revenue of $51.5 billion and net income of $11.1 billion, or $1.96 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter's revenue.

"Our strong September quarter results cap a very successful fiscal 2016 for Apple," said Tim Cook, Apple's CEO. "We're thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record."

"We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter," said Luca Maestri, Apple's CFO. "We also returned $9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over $186 billion of our capital return program."

Apple is providing the following guidance for its fiscal 2017 first quarter:
revenue between $76 billion and $78 billion
gross margin between 38 percent and 38.5 percent
operating expenses between $6.9 billion and $7 billion
other income/(expense) of $400 million
tax rate of 26 percent

Apple's board of directors has declared a cash dividend of $0.57 per share of the Company's common stock. The dividend is payable on November 10, 2016 to shareholders of record as of the close of business on November 7, 2016.

Apple will provide live streaming of its Q4 2016 financial results conference call beginning at 2:00 p.m. PDT on October 25, 2016 at www.apple.com/investor/earnings-call/. 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, gross margin, operating expenses, other income/(expense), and tax rate. 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 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 26, 2015, its Form 10-Q for the fiscal quarter ended December 26, 2015, its Form 10-Q for the fiscal quarter ended March 26, 2016, its Form 10-Q for the fiscal quarter ended June 25, 2016, and its Form 10-K for the fiscal year ended September 24, 2016 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 revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple's four software platforms - iOS, macOS, watchOS and tvOS - provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple's more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.


Press Contact:
Kristin Huguet
Apple
khuguet@apple.com
(408) 974-2414

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.


© 2016 Apple Inc. All rights reserved. Apple and the Apple logo 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 24,
2016
 
September 26,
2015
 
September 24,
2016
 
September 26,
2015
Net sales
$
46,852

 
$
51,501

 
$
215,639

 
$
233,715

Cost of sales (1)
29,039

 
30,953

 
131,376

 
140,089

Gross margin
17,813

 
20,548

 
84,263

 
93,626

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Research and development (1)
2,570

 
2,220

 
10,045

 
8,067

Selling, general and administrative (1)
3,482

 
3,705

 
14,194

 
14,329

Total operating expenses
6,052

 
5,925

 
24,239

 
22,396

 
 
 
 
 
 
 
 
Operating income
11,761

 
14,623

 
60,024

 
71,230

Other income/(expense), net
427

 
439

 
1,348

 
1,285

Income before provision for income taxes
12,188

 
15,062

 
61,372

 
72,515

Provision for income taxes
3,174

 
3,938

 
15,685

 
19,121

Net income
$
9,014

 
$
11,124

 
$
45,687

 
$
53,394

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
1.68

 
$
1.97

 
$
8.35

 
$
9.28

Diluted
$
1.67

 
$
1.96

 
$
8.31

 
$
9.22

 
 
 
 
 
 
 
 
Shares used in computing earnings per share:
 
 
 
 
 
 
 
Basic
5,366,912

 
5,646,916

 
5,470,820

 
5,753,421

Diluted
5,393,333

 
5,682,519

 
5,500,281

 
5,793,069

 
 
 
 
 
 
 
 
Cash dividends declared per share
$
0.57

 
$
0.52

 
$
2.18

 
$
1.98

 
 
 
 
 
 
 
 
(1) Includes share-based compensation expense as follows:
Cost of sales
$
186

 
$
145

 
$
769

 
$
575

Research and development
$
476

 
$
390

 
$
1,889

 
$
1,536

Selling, general and administrative
$
368

 
$
380

 
$
1,552

 
$
1,475







Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par value)
 
 
September 24,
2016
 
September 26,
2015
ASSETS:
Current assets:
 
 
 
Cash and cash equivalents
$
20,484

 
$
21,120

Short-term marketable securities
46,671

 
20,481

Accounts receivable, less allowances of $53 and $63, respectively
15,754

 
16,849

Inventories
2,132

 
2,349

Vendor non-trade receivables
13,545

 
13,494

Other current assets
8,283

 
15,085

Total current assets
106,869

 
89,378

 
 
 
 
Long-term marketable securities
170,430

 
164,065

Property, plant and equipment, net
27,010

 
22,471

Goodwill
5,414

 
5,116

Acquired intangible assets, net
3,206

 
3,893

Other non-current assets
8,757

 
5,422

Total assets
$
321,686

 
$
290,345

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
 
 
 
Accounts payable
$
37,294

 
$
35,490

Accrued expenses
22,027

 
25,181

Deferred revenue
8,080

 
8,940

Commercial paper
8,105

 
8,499

Current portion of long-term debt
3,500

 
2,500

Total current liabilities
79,006

 
80,610

 
 
 
 
Deferred revenue, non-current
2,930

 
3,624

Long-term debt
75,427

 
53,329

Other non-current liabilities
36,074

 
33,427

Total liabilities
193,437

 
170,990

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Shareholders’ equity:
 
 
 
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,336,166 and 5,578,753 shares issued and outstanding, respectively
31,251

 
27,416

Retained earnings
96,364

 
92,284

Accumulated other comprehensive income/(loss)
634

 
(345
)
Total shareholders’ equity
128,249

 
119,355

Total liabilities and shareholders’ equity
$
321,686

 
$
290,345







Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
 
 
Twelve Months Ended
 
September 24,
2016
 
September 26,
2015
Cash and cash equivalents, beginning of the period
$
21,120

 
$
13,844

 
 
 
 
Operating activities:
 
 
 
Net income
45,687

 
53,394

Adjustments to reconcile net income to cash generated by operating activities:
 
 
 
Depreciation and amortization
10,505

 
11,257

Share-based compensation expense
4,210

 
3,586

Deferred income tax expense
4,938

 
1,382

Changes in operating assets and liabilities:
 
 
 
Accounts receivable, net
1,095

 
611

Inventories
217

 
(238
)
Vendor non-trade receivables
(51
)
 
(3,735
)
Other current and non-current assets
1,090

 
(179
)
Accounts payable
1,791

 
5,400

Deferred revenue
(1,554
)
 
1,042

Other current and non-current liabilities
(2,104
)
 
8,746

Cash generated by operating activities
65,824

 
81,266

 
 
 
 
Investing activities:
 
 
 
Purchases of marketable securities
(142,428
)
 
(166,402
)
Proceeds from maturities of marketable securities
21,258

 
14,538

Proceeds from sales of marketable securities
90,536

 
107,447

Payments made in connection with business acquisitions, net
(297
)
 
(343
)
Payments for acquisition of property, plant and equipment
(12,734
)
 
(11,247
)
Payments for acquisition of intangible assets
(814
)
 
(241
)
Payments for strategic investments
(1,388
)
 

Other
(110
)
 
(26
)
Cash used in investing activities
(45,977
)
 
(56,274
)
 
 
 
 
Financing activities:
 
 
 
Proceeds from issuance of common stock
495

 
543

Excess tax benefits from equity awards
407

 
749

Payments for taxes related to net share settlement of equity awards
(1,570
)
 
(1,499
)
Payments for dividends and dividend equivalents
(12,150
)
 
(11,561
)
Repurchases of common stock
(29,722
)
 
(35,253
)
Proceeds from issuance of term debt, net
24,954

 
27,114

Repayments of term debt
(2,500
)
 

Change in commercial paper, net
(397
)
 
2,191

Cash used in financing activities
(20,483
)
 
(17,716
)
 
 
 
 
Increase/(Decrease) in cash and cash equivalents
(636
)
 
7,276

Cash and cash equivalents, end of the period
$
20,484

 
$
21,120

 
 
 
 
Supplemental cash flow disclosure:
 
 
 
Cash paid for income taxes, net
$
10,444

 
$
13,252

Cash paid for interest
$
1,316

 
$
514



Close
The content provided on Two Margins is for information purposes only and does not constitute investment and/or legal advice. Crypto currencies are highly volatile, risky assets and no information on this site, whether generated by Two Margins or external contributors, is a substitute for your own research. Full Risk Disclosure and Disclaimer here.