Apple Computer said record sales of new computers and lower costs led to a solid fiscal third-quarter profit, which shattered Wall Street expectations.
More important, the rejuvenated computer maker said it expects even better results in coming quarters, powered by continuing strong sales of its desktop machines and laptops and the introduction of its new consumer iMac computer in August. Apple said it expects to report year-over-year revenue growth in the December quarter -- the first time it would do so in more than three years.
Said Fred Anderson, Apple's finance chief: "Obviously, we’re extremely pleased."
So were Wall Street analysts. "You’re seeing the benefits of more efficient operations combined with well-received high-margin products," said Lou Mazzucchelli, an analyst at Gerard Klauer Mattison. "These guys are very well-positioned for the rest of the year."
After the market closed, the Cupertino, California, company said it had a profit from operations of US$75 million, or 50 cents a share. In the same quarter last year, it had a loss of $56 million, or 44 cents a share.
Revenue for the quarter ended 30 June fell 20 percent to $1.4 billion, down from $1.74 billion a year ago.
Wall Street had expected Apple (AAPL) to earn 34 cents a share, according to a recent analyst survey by Zacks Investment Research.
It was the third consecutive quarterly profit for Apple, which had reported a string of losses for the previous two years. While Apple is far from its heyday when it was one of the top three computer makers, the company is close to reporting modest revenue gains and profits quarter after quarter, analysts said.
"This is definitely sustainable," Mazzucchelli said.
Apple said strong sales of its Power Macintosh G3 desktop machines and laptops accounted for the solid results. Anderson also credited better inventory management and a more manageable product lineup for the recovery. He credited his boss, interim CEO Steve Jobs, for the gains.
"When Steve came on at this time last year, Apple had 15 products. Now we have four," Anderson said. That reduction has allowed Apple to focus and streamline operations.
Apple also is counting on the iMac to re-enter the consumer market, one of the company's strongholds.
Apple's stock closed up $1 at $34.44, just shy of its 52-week high.
