Apple has strong Q4 but may have to restate

Apple investigates stock-option prices

Strong sales of its iPod music players and Macintosh computers helped Apple Computer earn net income of $US546 million in its fiscal 2006 fourth quarter, but the company warned it could restate its financial results at a later time as it continues an investigation of stock-option practices.

For the quarter ended Sept. 30, 2006, Apple reported revenue of $4.84 billion, a 24 per cent increase over the year-ago quarter, when the company reported $3.68 billion in revenue, Apple said Wednesday. Net income also was up year-over-year, an increase of 27 per cent compared with the same time period last year, when Apple reported net income of $430 million.

Earnings per share (EPS) for the quarter were $0.62. Both EPS and revenue numbers solidly beat estimates by analysts polled by Thomson Financial, which predicted Apple would earn $0.51 per share for the quarter on revenue of $4.62 billion.

The company said it sold more than 1.6 million Macintosh computers in the quarter and shipped 8.7 million iPods, the latter figure slightly higher than the 8.5 million iPod shipments Wall Street analysts were predicting. Both numbers represented growth over the year-ago quarter, with Mac shipments up 35 per cent and iPod shipments up 30 per cent.

Still, the strong quarter was shadowed by a stock-option investigation that may require the company to restate its financial results for the fourth quarter if historical results have to be restated, which the company said is likely. In a press statement, Apple predicted it may have to make a "significant adjustment" to its financials after an independent investigation determined on Oct. 4 that stock option grants made on 15 dates between 1997 and 2002 appear to have grant dates that precede the approval of those grants.

Apple continues to investigate these findings, but said it likely will need to restate its historical financial statements to record non-cash charges for compensation expense and related cash and non-cash tax adjustments relating to past stock option grants.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Elizabeth Montalbano

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?