Apple Computer Issues Statement on Recent Media Reports and Comments on Second-Quarter Outlook
Cupertino, California--February 8, 1996--In response to recent media reports, Apple Computer, Inc. today stated that it is not currently in merger discussions with any party.
The company stated: "It has been our long-standing policy not to comment on rumor and speculation, and that continues to be the case. Because of the destabilizing effect recent rumors and speculation have had on our business and our organization, we have decided in this one instance, however, to make an exception to our policy."
Apple reported that as a result of the adverse impact of such rumors and speculation on customer buying decisions, as well as other market factors, the company expects to report an operating loss for its second quarter that will significantly exceed its first-quarter operating loss of $69 million. In addition, the company stated that it expects to record certain second-quarter charges related to its previously announced business restructuring program, and other charges related to inventory adjustments, as it continues to take the steps necessary to position itself for a return to profitability and for long-term business success.
Dr. Gilbert F. Amelio, Apple chairman and chief executive officer, said: "I want to emphasize my strong belief, despite the obvious disappointment of our performance in the first and second quarters, that the foundations of our business are sound, and that Apple Computer has the ability, determination and staying power to deal with current challenges and to move forward with confidence into the future.
"In order to remain competitive at all levels while retaining our ability to develop and bring to market leading-edge technologies, particularly in the areas of multimedia, Internet, graphics and ease-of-use, we will continue building our strengths in the education, home, business, and other market segments.
"I am confident that the actions we will be taking in the weeks and months ahead will result in increasing profitability in those markets where we already excel, and significantly improve our overall business proposition going forward. I fully expect that our customers' grandchildren will be buying Apple products," Amelio said.
Last Friday, Apple announced that its Board of Directors had put in place new management leadership, appointing Dr. Amelio, an Apple board member and previously chairman, president and chief executive officer of National Semiconductor Corporation, as chairman and chief executive officer of Apple.
The statements herein concerning second-quarter results are preliminary and are based on partial information and management assumptions. The company will announce its actual results for the second quarter in April.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. Potential risks and uncertainties include without limitation continued competitive pressures in the marketplace; the effect any reaction to such competitive pressures has on inventory valuations; the effect of any further adverse publicity; and the need for and any effect of any business restructuring actions. Further information on potential factors that could affect the company's financial results will be included in the company's Form 10-Q for its 1996 first quarter, to be filed with the SEC.
Apple Computer, Inc., a recognized innovator in the information industry and leader in multimedia technologies, creates powerful solutions based on easy-to-use personal computers, servers, peripherals, software, online services, and personal digital assistants. Headquartered in Cupertino, California, Apple (NASDAQ: AAPL) develops, manufactures, licenses and markets solutions, products, technologies and services for business, education, consumer, entertainment, scientific & engineering and government customers in more than 140 countries.
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