Apple recently posted a Form 10-Q, a regular statement the company is required to file with the U.S. Securities and Exchange Commission (SEC). The quarterly filed document contains information that is familiar to those who follow Apple’s financial reports, although there’s some detailed information therein as well.
As Apple had previously reported, net sales for the quarter totaled US$1.545 billion, up 8 percent year to year, though the company saw a year-over-year decline in net profit.
Apple noted in its filing that it has sold all of its remaining holdings in both chip designer
ARM Holdings PLC. Apple sold off 278,000 shares of ARM stock for net proceeds of about $295,000, according to the report — a gain before taxes of about $270,000.
Apple also divested itself of holdings in
EarthLink Inc., a nationwide Internet service provider. Apple’s sale of 3.96 million Earthlink shares netted the company about $23 million total, with a $2 million gain.
Apple still maintains an active investment in Akamai Technologies Inc., the global content distribution networking provider, with a fair market value of about $14 million at the end of the second quarter.
Looking forward to the fourth quarter of 2003, Apple’s expecting net sales to increase by “a high single-digit,” although it’s also anticipating a lower gross margin by about 100 basis points, thanks to a slowdown in revenue from Jaguar (as consumers anticipate the release of Panther), and increased manufacturing costs associated with the new Power Mac G5, set to ship this month.
Apple anticipates operating expenses to be in the range of $420 million — about $1 million more than it spent for its third financial quarter — including about $10 million in software development costs associated with Panther. Apple also expects to see a net decline in interest and other income to about $10 million, due to lower interest yields on its investment portfolio.