Apple Posts Net Income, Increased Profit Margin
Despite a predicted drop in sales, Apple Computer (Cupertino, CA) reports Q1 '98 net income of $47 million, exceeding its predictions from earlier this month. A gross margin of 22% compare with a 20% margin in Q4 '97 and a 19% margin in Q1 '97. Operating expenses were the driving force behind the company's profitability, having been reduced to $313 million from $521 million in Q1 '97. New products, streamlined business and partnerships within the industry contributed as well, according to interim CEO Steve Jobs. "Not only did we achieve a solid operating profit," added CFO Fred Anderson, "but our improving asset management resulted in positive cash flow from operations of $143 million." During the quarter Apple released the Power Macintosh G3 computers, which with 133,000 units shipped is the most successful launch in the company's history.