10-Q 1 a06-10806_110q.htm QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15(D)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

 

ý

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the quarterly period ended April 1, 2006

 

 

or

 

 

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the transition period from                to                 .

 

Commission File Number: 000-10030

 

 

APPLE COMPUTER, INC.

(Exact name of registrant as specified in its charter)

 

CALIFORNIA

 

942404110

(State or other jurisdiction
of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

1 Infinite Loop 
Cupertino, California 

 

95014

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (408) 996-1010

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

 

 

Yes  ý

No  o

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

 

 

Large accelerated filer  ý

Accelerated filer  o

Non-accelerated filer  o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

 

 

Yes  o

No  ý

 

 

850,508,144 shares of common stock issued and outstanding as of April 26, 2006

 

 


 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

APPLE COMPUTER, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions, except share and per share amounts)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

April 1, 
2006

 

March 26, 
2005

 

April 1, 
2006

 

March 26, 
2005

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

4,359

 

$

3,243

 

$

10,108

 

$

6,733

 

Cost of sales (1)

 

3,062

 

2,275

 

7,247

 

4,769

 

Gross margin

 

1,297

 

968

 

2,861

 

1,964

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development (1)

 

176

 

119

 

358

 

242

 

Selling, general, and administrative (1)

 

592

 

447

 

1,224

 

917

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

768

 

566

 

1,582

 

1,159

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

529

 

402

 

1,279

 

805

 

 

 

 

 

 

 

 

 

 

 

Other income and expense

 

76

 

33

 

157

 

59

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

605

 

435

 

1,436

 

864

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

195

 

145

 

461

 

279

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

410

 

$

290

 

$

975

 

$

585

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.49

 

$

0.36

 

$

1.17

 

$

0.73

 

Diluted

 

$

0.47

 

$

0.34

 

$

1.11

 

$

0.69

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share (in thousands):

 

 

 

 

 

 

 

 

 

Basic

 

840,910

 

808,172

 

835,658

 

798,602

 

Diluted

 

878,537

 

857,011

 

875,725

 

848,553

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

April 1,
2006

 

March 26,
2005

 

April 1,
2006

 

March 26,
2005

 

(1) Stock-based compensation expense was allocated as follows:

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

5

 

$

1

 

$

10

 

$

1

 

Research and development

 

$

13

 

$

1

 

$

28

 

$

3

 

Selling, general, and administrative

 

$

24

 

$

8

 

$

48

 

$

16

 

 

See accompanying notes to condensed consolidated financial statements.

 

2


 

APPLE COMPUTER, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions, except share amounts)

 

 

 

April 1, 2006

 

September 24, 2005

 

 

 

 

 

 

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

6,346

 

$

3,491

 

Short-term investments

 

1,880

 

4,770

 

Accounts receivable, less allowances of $48 and $46, respectively

 

861

 

895

 

Inventories

 

204

 

165