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• |
revenue between $49 billion and $52 billion |
• |
gross margin between 37.5 percent and 38 percent |
• |
operating expenses between $6.7 billion and $6.8 billion |
• |
other income/(expense) of $500 million |
• |
tax rate of 25.5 percent |
Three Months Ended |
Nine Months Ended |
||||||||||||||
July 1, 2017 |
June 25, 2016 |
July 1, 2017 |
June 25, 2016 |
||||||||||||
Net sales |
$ |
45,408 |
$ |
42,358 |
$ |
176,655 |
$ |
168,787 |
|||||||
Cost of sales (1)
|
27,920 |
26,252 |
108,400 |
102,337 |
|||||||||||
Gross margin |
17,488 |
16,106 |
68,255 |
66,450 |
|||||||||||
Operating expenses: |
|||||||||||||||
Research and development (1)
|
2,937 |
2,560 |
8,584 |
7,475 |
|||||||||||
Selling, general and administrative (1)
|
3,783 |
3,441 |
11,447 |
10,712 |
|||||||||||
Total operating expenses |
6,720 |
6,001 |
20,031 |
18,187 |
|||||||||||
Operating income |
10,768 |
10,105 |
48,224 |
48,263 |
|||||||||||
Other income/(expense), net |
540 |
364 |
1,948 |
921 |
|||||||||||
Income before provision for income taxes |
11,308 |
10,469 |
50,172 |
49,184 |
|||||||||||
Provision for income taxes |
2,591 |
2,673 |
12,535 |
12,511 |
|||||||||||
Net income |
$ |
8,717 |
$ |
7,796 |
$ |
37,637 |
$ |
36,673 |
|||||||
Earnings per share: |
|||||||||||||||
Basic |
$ |
1.68 |
$ |
1.43 |
$ |
7.18 |
$ |
6.66 |
|||||||
Diluted |
$ |
1.67 |
$ |
1.42 |
$ |
7.14 |
$ |
6.62 |
|||||||
Shares used in computing earnings per share: |
|||||||||||||||
Basic |
5,195,088 |
5,443,058 |
5,239,847 |
5,505,456 |
|||||||||||
Diluted |
5,233,499 |
5,472,781 |
5,274,394 |
5,535,931 |
|||||||||||
Cash dividends declared per share |
$ |
0.63 |
$ |
0.57 |
$ |
1.77 |
$ |
1.61 |
|||||||
(1) Includes share-based compensation expense as follows:
| |||||||||||||||
Cost of sales |
$ |
216 |
$ |
188 |
$ |
662 |
$ |
583 |
|||||||
Research and development |
$ |
566 |
$ |
479 |
$ |
1,730 |
$ |
1,413 |
|||||||
Selling, general and administrative |
$ |
411 |
$ |
387 |
$ |
1,274 |
$ |
1,184 |
July 1, 2017 |
September 24, 2016 |
||||||
ASSETS: | |||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
18,571 |
$ |
20,484 |
|||
Short-term marketable securities |
58,188 |
46,671 |
|||||
Accounts receivable, less allowances of $55 and $53, respectively
|
12,399 |
15,754 |
|||||
Inventories |
3,146 |
2,132 |
|||||
Vendor non-trade receivables |
10,233 |
13,545 |
|||||
Other current assets |
10,338 |
8,283 |
|||||
Total current assets |
112,875 |
106,869 |
|||||
Long-term marketable securities |
184,757 |
170,430 |
|||||
Property, plant and equipment, net |
29,286 |
27,010 |
|||||
Goodwill |
5,661 |
5,414 |
|||||
Acquired intangible assets, net |
2,444 |
3,206 |
|||||
Other non-current assets |
10,150 |
8,757 |
|||||
Total assets |
$ |
345,173 |
$ |
321,686 |
|||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
31,915 |
$ |
37,294 |
|||
Accrued expenses |
23,304 |
22,027 |
|||||
Deferred revenue |
7,608 |
8,080 |
|||||
Commercial paper |
11,980 |
8,105 |
|||||
Current portion of long-term debt |
6,495 |
3,500 |
|||||
Total current liabilities |
81,302 |
79,006 |
|||||
Deferred revenue, non-current |
2,984 |
2,930 |
|||||
Long-term debt |
89,864 |
75,427 |
|||||
Other non-current liabilities |
38,598 |
36,074 |
|||||
Total liabilities |
212,748 |
193,437 |
|||||
Commitments and contingencies |
|||||||
Shareholders’ equity: |
|||||||
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,169,782 and 5,336,166 shares issued and outstanding, respectively |
34,445 |
31,251 |
|||||
Retained earnings |
98,525 |
96,364 |
|||||
Accumulated other comprehensive income/(loss) |
(545 |
) |
634 |
||||
Total shareholders’ equity |
132,425 |
128,249 |
|||||
Total liabilities and shareholders’ equity |
$ |
345,173 |
$ |
321,686 |
Nine Months Ended |
|||||||
July 1, 2017 |
June 25, 2016 |
||||||
Cash and cash equivalents, beginning of the period |
$ |
20,484 |
$ |
21,120 |
|||
Operating activities: |
|||||||
Net income |
37,637 |
36,673 |
|||||
Adjustments to reconcile net income to cash generated by operating activities: |
|||||||
Depreciation and amortization |
7,673 |
7,957 |
|||||
Share-based compensation expense |
3,666 |
3,180 |
|||||
Deferred income tax expense |
4,764 |
5,191 |
|||||
Other |
(142 |
) |
419 |
||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable, net |
3,381 |
4,623 |
|||||
Inventories |
(1,014 |
) |
518 |
||||
Vendor non-trade receivables |
3,312 |
6,166 |
|||||
Other current and non-current assets |
(3,229 |
) |
1,049 |
||||
Accounts payable |
(5,212 |
) |
(9,567 |
) |
|||
Deferred revenue |
(418 |
) |
(1,148 |
) |
|||
Other current and non-current liabilities |
(2,476 |
) |
(5,363 |
) |
|||
Cash generated by operating activities |
47,942 |
49,698 |
|||||
Investing activities: |
|||||||
Purchases of marketable securities |
(123,781 |
) |
(112,068 |
) |
|||
Proceeds from maturities of marketable securities |
19,347 |
14,915 |
|||||
Proceeds from sales of marketable securities |
76,747 |
69,926 |
|||||
Payments made in connection with business acquisitions, net |
(248 |
) |
(146 |
) |
|||
Payments for acquisition of property, plant and equipment |
(8,586 |
) |
(8,757 |
) |
|||
Payments for acquisition of intangible assets |
(209 |
) |
(753 |
) |
|||
Payments for strategic investments, net |
(87 |
) |
(1,376 |
) |
|||
Other |
313 |
(321 |
) |
||||
Cash used in investing activities |
(36,504 |
) |
(38,580 |
) |
|||
Financing activities: |
|||||||
Proceeds from issuance of common stock |
274 |
247 |
|||||
Excess tax benefits from equity awards |
534 |
391 |
|||||
Payments for taxes related to net share settlement of equity awards |
(1,646 |
) |
(1,361 |
) |
|||
Payments for dividends and dividend equivalents |
(9,499 |
) |
(9,058 |
) |
|||
Repurchases of common stock |
(25,105 |
) |
(23,696 |
) |
|||
Proceeds from issuance of term debt, net |
21,725 |
17,984 |
|||||
Repayments of term debt |
(3,500 |
) |
(2,500 |
) |
|||
Change in commercial paper, net |
3,866 |
3,992 |
|||||
Cash used in financing activities |
(13,351 |
) |
(14,001 |
) |
|||
Increase/(Decrease) in cash and cash equivalents |
(1,913 |
) |
(2,883 |
) |
|||
Cash and cash equivalents, end of the period |
$ |
18,571 |
$ |
18,237 |
|||
Supplemental cash flow disclosure: |
|||||||
Cash paid for income taxes, net |
$ |
9,752 |
$ |
8,990 |
|||
Cash paid for interest |
$ |
1,456 |
$ |
892 |