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Apple Q1 2006 Financial Results

Maybe I'm crossing wires here, but didn't I read somewhere a year or so ago that Apple took a chunk of its corporate savings and paid off all of its debts in full? If so, that would seem to mean that the company is now operating entirely in the black - and doesn't that make it a bit of an anomaly in the corporate world?
 
Supposedly lackluster guidance for Q2, but I'm not concerned. Of course, stock's down over 7% in after-hours 🙄

Now's a decent time to buy AAPL.
 
FoxyKaye said:
Maybe I'm crossing wires here, but didn't I read somewhere a year or so ago that Apple took a chunk of its corporate savings and paid off all of its debts in full?
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Even when Apple was carrying some debt they had been operating in the black (positive cash flow) for many quarters but yes they did payoff their last major debt a few quarters back.

FoxyKaye said:
If so, that would seem to mean that the company is now operating entirely in the black - and doesn't that make it a bit of an anomaly in the corporate world?
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Yes and no... Apple has a good debt rating so they will get good lending rates. So if they needed cash they could borrow instead of burning their investments. Depending on the goals and the business plan not carrying any debt may not be the best thing for a company... basically if you have favorable lending rates and don't borrow is it like leaving money on the table. Again it depends on business plans on what makes sense for each company.
 
FoxyKaye said:
Maybe I'm crossing wires here, but didn't I read somewhere a year or so ago that Apple took a chunk of its corporate savings and paid off all of its debts in full? If so, that would seem to mean that the company is now operating entirely in the black - and doesn't that make it a bit of an anomaly in the corporate world?
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You are correct, sir! I think it was around this time last year that they announced that they would have all their debt paid of by Feb '05. Pretty nice if you ask me. These days I almost forget what it was like back in the mid to late 90's. Things have turned around and now the media can't stop praising them...back then you could hardly read an article that didn't saying how much they sucked.
 
NEENAHBOY said:
Supposedly lackluster guidance for Q2, but I'm not concerned. Of course, stock's down over 7% in after-hours 🙄

Now's a decent time to buy AAPL.
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Lackluster? I think it would be the second best quarter ever not including the one they just had if their guidance plays out. Pretty hard to top the xmas shopping season.
 
NEENAHBOY said:
Supposedly lackluster guidance for Q2, but I'm not concerned.
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I wouldn't call this quarter (Q2) guidance lackluster. The guidance (if realized) would make this quarter the 2nd best in Apple history behind the last quarter (Q1, the xmas shopping season). The markets Apple plays in are affected by sessionally and Q2 has historically been one of Apples weakest quarters... so giving guidance that it will be only second to last quarter in their history is impressive.
 
The conference call is over. Conference call audio replay will be available here starting no later than 5pm Pacific time (2 hours from now).

A few more tidbits:
Apple's business in Europe was up over 50%, but that's partly because the September quarter in Europe is the traditional time of summer vacations.

iTunes Music Store sales and sales of iPod accessories (both Apple's and those by other developers) follow from the sales of iPods. Both categories saw significant growth, compared to the previous quarter and compared to Q1 last year.

Apple will continue to invest for purposes of "long-term growth" in development, in advertising and marketing, and in Apple Stores.​
 
It is to bad the quarter to quarter unit volume for Mac was flat... this likely means that they underperformed relative to personal computer market growth for the quarter (holiday quarter). This means their market share will drop for the quarter.

Such a drop will likely be spun by some to imply that Apple is failing in the PC market while not fully considering (or disclosing) the effects of the Intel transition (Apple was clear they saw a unit volume fall off when rumors of Intel system at MWSF 06 sprang up).
 
The foward looking statements today were a smokescreen...

Buy AAPL NOW!

It's gonna split 2nd quarter..after the new mac mini media et.al comes out..


remember this post! 😉
 
shawnce said:
Yes and no... Apple has a good debt rating so they will get good lending rates. So if they needed cash they could borrow instead of burning their investments. Depending on the goals and the business plan not carrying any debt may not be the best thing for a company... basically if you have favorable lending rates and don't borrow is it like leaving money on the table. Again it depends on business plans on what makes sense for each company.
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So, for example, if Apple were to make an expansion to pull production of the Intel PowerMacs back under its own roof (instead of outsourcing), even if they have all the cash up front, it might actually be better to do this with a loan to maintain a better overall business standing (which, I'm guessing, would in turn affect its stock favoribly). I suppose then, what they might have paid off was the debt from the 1990s so that they're not paying for things in the past - so now any new debt will be incurred for things that advance the company's current agenda.
jholzner said:
You are correct, sir! I think it was around this time last year that they announced that they would have all their debt paid of by Feb '05. Pretty nice if you ask me. These days I almost forget what it was like back in the mid to late 90's. Things have turned around and now the media can't stop praising them...back then you could hardly read an article that didn't saying how much they sucked.
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Well, actually, it's m'am. 😛 But yeah, it is really nice to see pro-Apple stuff in the media again. Kind of brings back some early 1980s nostalgia.
 
FoxyKaye said:
So, for example, if Apple were to make an expansion to pull production of the Intel PowerMacs back under its own roof (instead of outsourcing), even if they have all the cash up front, it might actually be better to do this with a loan to maintain a better overall business standing (which, I'm guessing, would in turn affect its stock favoribly). I suppose then, what they might have paid off was the debt from the 1990s so that they're not paying for things in the past - so now any new debt will be incurred for things that advance the company's current agenda.
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Yup that is a feasible and reasonable example of the point I was trying to make. 🙂
 
Soulivar said:
they actually run twice as slow when they need to use rosetta for native applications??
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Not sure why folks are surprised or concerned by this... Rosette exists to help smooth the transition. It isn't meant as the end solution for products you buy.

To me that is excellent success at emulation and in the test cases outlined showing that AltiVec emulation is reasonably capable.

Have you ever tried to use Virtual PC? On its best day it could seldom come close to what Rosette is doing (when on a Core Duo).

Soulivar said:
i'm not sold on the switch to the intel chips yet.
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Based on emulated performance numbers?

Don't ignore the generally good performance seen in native code for a processor designed for laptop use when stacked up against a desktop class CPU... then factor that same CPU in a MacBook Pro compared to the now replaced PowerBook. It will generally eat PowerBooks for lunch.

The Macs that Apple come out with year will do rather well in performance and features.
 
macosxuser01 said:
I think Google and Apple could rule the world
lol

come on 14million ipods, thats alot of ipods
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Yes, I agree on the Google and Apple ruling the world. Would it not be awesome?🙄 😀 Also, I couldn't help but correct your grammar. You did my one pet peeve. You should say "a lot" instead of "alot." Sorry. Couldn't help myself.😱
 
aaaargh, i just bought AAPL at 84.10; in after-hours trading it went down to 75.xx...

sob, sob...

...ok, it's back to around 79.xx, but still, what a bitch; i should have waited one day... 🙁
 
amateurmacfreak said:
Yes, I agree on the Google and Apple ruling the world. Would it not be awesome?🙄 😀 Also, I couldn't help but correct your grammar. You did my one pet peeve. You should say "a lot" instead of "alot." Sorry. Couldn't help myself.😱
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fasho i don't mind.
I just pissed off because i told my dad to buy apple stock like over a year now and he said "no". Instead he has Microsoft stock. wtf😱
 
strange days said:
aaaargh, i just bought AAPL at 84.10; in after-hours trading it went down to 75.xx...

sob, sob...

...ok, it's back to around 79.xx, but still, what a bitch; i should have waited one day... 🙁
Click to expand...

you should wait to buy it when the stock spilts
 
Photorun said:
But go Apple!!! You're still three times better than Dell stock and hundreds of times better as a company.
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Sorry to burst your bubble but:

$80 x 842.768M = $67,421.44M = Apple's market value

$30 x 2,353.522M = $70,605.66M = Dell's market value

Apple still has $3,184,220,000 more to go! 😀
 
strange days said:
yeah, well, when stock splits, i'll be doubling my shares, right ?

so no pain in that...
...i guess
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You'll have double the shares at half the price. Net effect: none. It doesn't really matter whether you buy before or after a split.
 
therevolution said:
You'll have double the shares at half the price. Net effect: none. It doesn't really matter whether you buy before or after a split.
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yeah, what he said. A split is has a net effect of nothing.

You buy one share at 80 or two shares at 40. You still spent 80.
 
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