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• |
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 |
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 |
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 |
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 |