Apple Computer Files Initial Offering Of 4.5 Million Shares

Dow Jones News Service

November 6, 1980

WASHN -DJ- APPLE COMPUTER INC. FILED WITH THE SEC AN INITIAL PUBLIC OFFERING OF 4.5 MILLION SHARES OF COMMON SHARES. THE TENTATIVE PRICING WILL BE BETWEEN $14 AND $17 A SHARE. THE OFFERING IS PLANNED FOR EARLY DECEMBER.

THE COMPANY IS OFFERING 4 MILLION SHARES AND THE REMAINING 500 000 SHARES ARE COMING FROM SELLING SHAREHOLDERS.

THE HOLDERS INCLUDE BROVENTURE CO., CONTINENTAL VENTURE CORP., FIFTY-THIRD STREET VENTURES INC., HELLMAN, GAL INVESTMENT ASSOCIATES, HIXON VENTURE CO. AND XEROX CORP.

THE COMPANY WON'T RECEIVE ANY OF THE SELLING SHAREHOLDERS' PROCEEDS.

THE COMPANY'S PROCEEDS FROM THE SALE WILL BE USED FOR APPLE'S EQUITY CAPITAL BASE IN ORDER TO FINANCE GROWTH.

IT WILL ALSO BE USED TO REPAY SHORT-TERM BANK DEBT AND TO FINANCE ACCOUNTS RECEIVABLES AND FOR OTHER CORPORATE PURPOSES.

UNDERWRITERS ARE LED BY MORGAN STANLEY & CO INC AND HAMBRECHT & QUIST.

THE REGISTRATION STATEMENT FILED TODAY CHARTS THE COMPANY'S RAPID RISE SINCE ITS FOUNDING IN 1977 TO BECOME NO.2 IN THE GROWING FIELD OF PERSONAL COMPUTERS, RIGHT BEHIND TANDY CORP. ITS STATEMENT PROVIDES OUTSIDERS WITH THE FIRST CLEAR LOOK AT THE FINANCIAL SIDE OF THE BUSINESS.

APPLE'S NET SALES IN FISCAL 1979 ROUGHLY QUINTUPLED FROM FISCAL 1978, THE COMPANY'S FIRST FULL YEAR OF OPERATION. REVENUE ROSE TO $47.9 MILLION FROM $7.9 MILLION, AND EARNINGS SOARED TO $5.1 MILLION, OR 12 CENTS A SHARE, FROM $793,497, OR THREE CENTS A SHARE.

IN FISCAL 1980, ENDED SEPT. 26, PROFIT MORE THAN DOUBLED TO $11.7 MILLION, OR 24 CENTS A SHARE. REVENUE ROSE TO $117. 9 MILLION.

THE COMPANY HAS 48.4 MILLION SHARES OUTSTANDING, OF 160 MILLION AUTHORIZED.

APPLE'S SEC FILING ALSO DEPICTS A COMPANY WITH RISING EXPENSES FOR MARKETING, EXPANSION AND PROMOTION.

APPLE ALSO DISCLOSED SOME POTENTIAL SOFT SPOTS. THE FILING ACKNOWLEDGED THE COMPANY LACKS THE MARKET PENETRATION OF TANDY CORP.'S RADIO SHACK AND THE BROAD DISTRIBUTION OF COMMODORE INTERNATIONAL LTD., WHICH ALSO SELLS PERSONAL COMPUTERS. APPLE SAID IT "MAY ALSO BE AT A COMPETITIVE DISADVANTAGE" BECAUSE IT PURCHASES INTEGRATED CIRCUITS AND OTHER PARTS USED IN COMPUTERS, AS WELL AS A SUBSTANTIAL PORTION OF PERIPHERAL EQUIPMENT, RATHER THAN MAKING ITS OWN.

APPLE ALSO DISCLOSED THAT IT IS THE TARGET OF A JUNE 1980 LAWSUIT FILED BY A FORMER DISTRIBUTOR, HIGH TECHNOLOGY INC., WHICH ALLEGED VIOLATION OF FEDERAL ANTITRUST LAWS AND BREACH OF CONTRACT AMONG OTHER CHARGES.