iPhone, Wearables & Services Drive All-Time Record
Revenue and Earnings
Apple® today announced financial results for its fiscal 2020
first quarter ended December 28, 2019. The Company posted quarterly
revenue of $91.8 billion, an increase of 9 percent from the
year-ago quarter and an all-time record, and quarterly earnings per
diluted share of $4.99, up 19 percent, also an all-time record.
International sales accounted for 61 percent of the quarter’s
revenue.
“We are thrilled to report Apple’s highest quarterly revenue
ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro
models, and all-time records for Services and Wearables,” said Tim
Cook, Apple’s CEO. “During the holiday quarter our active installed
base of devices grew in each of our geographic segments and has now
reached over 1.5 billion. We see this as a powerful testament to
the satisfaction, engagement and loyalty of our customers — and a
great driver of our growth across the board.”
“Our very strong business performance drove an all-time net
income record of $22.2 billion and generated operating cash flow of
$30.5 billion,” said Luca Maestri, Apple’s CFO. “We also returned
nearly $25 billion to shareholders during the quarter, including
$20 billion in share repurchases and $3.5 billion in dividends and
equivalents, as we maintain our target of reaching a net cash
neutral position over time.”
Apple is providing the following guidance for its fiscal 2020
second quarter:
• revenue between $63.0 billion and $67.0 billion • gross margin
between 38.0 percent and 39.0 percent • operating expenses between
$9.6 billion and $9.7 billion • other income/(expense) of $250
million • tax rate of approximately 16.5 percent
Apple’s board of directors has declared a cash dividend of $0.77
per share of the Company’s common stock. The dividend is payable on
February 13, 2020 to shareholders of record as of the close of
business on February 10, 2020.
Apple will provide live streaming of its Q1 2020 financial
results conference call beginning at 2:00 p.m. PT on January 28,
2020 at www.apple.com/investor/earnings-call/. This webcast will
also be available for replay for approximately two weeks
thereafter.
Apple periodically provides information for investors on its
corporate website, apple.com, and its investors relations website,
investor.apple.com. This includes press releases and other
information about financial performance, reports filed or furnished
with the SEC, information on corporate governance and details
related to its annual meeting of shareholders.
This press release contains forward-looking statements, within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include without limitation
those about the Company’s estimated revenue, gross margin,
operating expenses, other income/(expense), tax rate, and plans for
return of capital. These statements involve risks and
uncertainties, and actual results may differ. Risks and
uncertainties include without limitation: the effect of global and
regional economic conditions on the Company’s business, including
effects on purchasing decisions by consumers and businesses; the
ability of the Company to compete in markets that are highly
competitive and subject to rapid technological change; the ability
of the Company to manage frequent introductions and transitions of
products and services, including delivering to the marketplace, and
stimulating customer demand for, new products, services and
technological innovations on a timely basis; the effect that shifts
in the mix of products and services and in the geographic, currency
or channel mix, component cost increases, increases in the cost of
acquiring and delivering content for the Company’s services, price
competition, or the introduction of new products or services,
including new products or services with higher cost structures,
could have on the Company’s gross margin; the dependency of the
Company on the performance of distributors of the Company’s
products, including cellular network carriers and other resellers;
the risk of write-downs on the value of inventory and other assets
and purchase commitment cancellation risk; the continued
availability on acceptable terms, or at all, of certain components,
services and new technologies essential to the Company’s business,
including components and technologies that may only be available
from single or limited sources; the dependency of the Company on
manufacturing and logistics services provided by third parties,
many of which are located outside of the US and which may affect
the quality, quantity or cost of products manufactured or services
rendered to the Company; the effect of product and services design
and manufacturing defects on the Company’s financial performance
and reputation; the dependency of the Company on third-party
intellectual property and digital content, which may not be
available to the Company on commercially reasonable terms or at
all; the dependency of the Company on support from third-party
software developers to develop and maintain software applications
and services for the Company’s products; the impact of unfavorable
legal proceedings, such as a potential finding that the Company has
infringed on the intellectual property rights of others; the impact
of complex and changing laws and regulations worldwide, which
expose the Company to potential liabilities, increased costs and
other adverse effects on the Company’s business; the ability of the
Company to manage risks associated with the Company’s retail
stores; the ability of the Company to manage risks associated with
the Company’s investments in new business strategies and
acquisitions; the impact on the Company’s business and reputation
from information technology system failures, network disruptions or
losses or unauthorized access to, or release of, confidential
information; the ability of the Company to comply with laws and
regulations regarding data protection; the continued service and
availability of key executives and employees; political events,
international trade disputes, war, terrorism, natural disasters,
public health issues, and other business interruptions that could
disrupt supply or delivery of, or demand for, the Company’s
products; financial risks, including risks relating to currency
fluctuations, credit risks and fluctuations in the market value of
the Company’s investment portfolio; and changes in tax rates and
exposure to additional tax liabilities. More information on these
risks and other potential factors that could affect the Company’s
financial results is included in the Company’s filings with the
SEC, including in the “Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of Operations”
sections of the Company’s most recently filed periodic reports on
Form 10-K and Form 10-Q and subsequent filings. 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.
NOTE TO EDITORS: For additional information visit Apple Newsroom
(www.apple.com/newsroom), or call Apple’s Media Helpline at (408)
974-2042.
© 2020 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. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions,
except number of shares which are reflected in thousands and per
share amounts)
Three Months Ended
December 28, 2019
December 29, 2018
Net sales:
Products
$
79,104
$
73,435
Services
12,715
10,875
Total net sales (1)
91,819
84,310
Cost of sales:
Products
52,075
48,238
Services
4,527
4,041
Total cost of sales
56,602
52,279
Gross margin
35,217
32,031
Operating expenses:
Research and development
4,451
3,902
Selling, general and administrative
5,197
4,783
Total operating expenses
9,648
8,685
Operating income
25,569
23,346
Other income/(expense), net
349
560
Income before provision for income
taxes
25,918
23,906
Provision for income taxes
3,682
3,941
Net income
$
22,236
$
19,965
Earnings per share:
Basic
$
5.04
$
4.22
Diluted
$
4.99
$
4.18
Shares used in computing earnings per
share:
Basic
4,415,040
4,735,820
Diluted
4,454,604
4,773,252
(1) Net sales by reportable segment:
Americas
$
41,367
$
36,940
Europe
23,273
20,363
Greater China
13,578
13,169
Japan
6,223
6,910
Rest of Asia Pacific
7,378
6,928
Total net sales
$
91,819
$
84,310
(1) Net sales by category:
iPhone
$
55,957
$
51,982
Mac
7,160
7,416
iPad
5,977
6,729
Wearables, Home and Accessories
10,010
7,308
Services
12,715
10,875
Total net sales
$
91,819
$
84,310
Apple Inc. CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except
number of shares which are reflected in thousands and par
value)
December 28, 2019
September 28, 2019
ASSETS:
Current assets:
Cash and cash equivalents
$
39,771
$
48,844
Marketable securities
67,391
51,713
Accounts receivable, net
20,970
22,926
Inventories
4,097
4,106
Vendor non-trade receivables
18,976
22,878
Other current assets
12,026
12,352
Total current assets
163,231
162,819
Non-current assets:
Marketable securities
99,899
105,341
Property, plant and equipment, net
37,031
37,378
Other non-current assets
40,457
32,978
Total non-current assets
177,387
175,697
Total assets
$
340,618
$
338,516
LIABILITIES AND SHAREHOLDERS’
EQUITY:
Current liabilities:
Accounts payable
$
45,111
$
46,236
Other current liabilities
36,263
37,720
Deferred revenue
5,573
5,522
Commercial paper
4,990
5,980
Term debt
10,224
10,260
Total current liabilities
102,161
105,718
Non-current liabilities:
Term debt
93,078
91,807
Other non-current liabilities
55,848
50,503
Total non-current liabilities
148,926
142,310
Total liabilities
251,087
248,028
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in
capital, $0.00001 par value: 12,600,000 shares authorized;
4,384,959 and 4,443,236 shares issued and outstanding,
respectively
45,972
45,174
Retained earnings
43,977
45,898
Accumulated other comprehensive
income/(loss)
(418
)
(584
)
Total shareholders’ equity
89,531
90,488
Total liabilities and shareholders’
equity
$
340,618
$
338,516
Apple Inc. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In
millions)
Three Months Ended
December 28, 2019
December 29, 2018
Cash, cash equivalents and restricted
cash, beginning balances
$
50,224
$
25,913
Operating activities:
Net income
22,236
19,965
Adjustments to reconcile net income to
cash generated by operating activities:
Depreciation and amortization
2,816
3,395
Share-based compensation expense
1,710
1,559
Deferred income tax expense/(benefit)
(349
)
53
Other
(142
)
(54
)
Changes in operating assets and
liabilities:
Accounts receivable, net
2,015
5,130
Inventories
(28
)
(1,076
)
Vendor non-trade receivables
3,902
6,905
Other current and non-current assets
(7,054
)
(886
)
Accounts payable
(1,089
)
(8,501
)
Deferred revenue
985
(370
)
Other current and non-current
liabilities
5,514
570
Cash generated by operating activities
30,516
26,690
Investing activities:
Purchases of marketable securities
(37,416
)
(7,077
)
Proceeds from maturities of marketable
securities
19,740
7,203
Proceeds from sales of marketable
securities
7,280
9,723
Payments for acquisition of property,
plant and equipment
(2,107
)
(3,355
)
Payments made in connection with business
acquisitions, net
(958
)
(167
)
Purchases of non-marketable securities
(77
)
(427
)
Other
(130
)
(56
)
Cash generated by/(used in) investing
activities
(13,668
)
5,844
Financing activities:
Proceeds from issuance of common stock
2
—
Payments for taxes related to net share
settlement of equity awards
(1,379
)
(1,318
)
Payments for dividends and dividend
equivalents
(3,539
)
(3,568
)
Repurchases of common stock
(20,706
)
(8,796
)
Proceeds from issuance of term debt,
net
2,210
—
Repayments of term debt
(1,000
)
—
Proceeds from/(Repayments of) commercial
paper, net
(979
)
6
Other
(16
)
—
Cash used in financing activities
(25,407
)
(13,676
)
Increase/(Decrease) in cash, cash
equivalents and restricted cash
(8,559
)
18,858
Cash, cash equivalents and restricted
cash, ending balances
$
41,665
$
44,771
Supplemental cash flow disclosure:
Cash paid for income taxes, net
$
4,393
$
4,916
Cash paid for interest
$
771
$
836
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200128005823/en/
Apple Press Contact: Kristin Huguet Quayle, (408)
974-2414 khuguet@apple.com
Investor Relations Contact: Tejas Gala, (669) 227-2402
tgala@apple.com
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Apr 2023 to Apr 2024
