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  234.                    
  235.     
  236.  <p>Apple Computer Announces Quarterly Results</p>
  237. <p>Company Posts $25 Million Profit; Revenues, Margins, and Cash Flow Reflect<br />
  238. Continued Improvement</p>
  239. <p> CUPERTINO, California--Oct. 16, 1996--Apple Computer, Inc. today announced<br />
  240. results for its fourth fiscal quarter ended Sept. 27, 1996. For the<br />
  241. quarter, Apple's revenues were $2.321 billion, a decrease of $682 million<br />
  242. fromthe fourth quarter a year ago, but a sequential increase of $142<br />
  243. million from the quarter ended June 30, 1996. Unit shipments for the<br />
  244. quarter were approximately 932,000, a decline of 26 percent from the year<br />
  245. ago quarter but a sequential increase of 11 percent from the June 1996<br />
  246. quarter. International revenues represented 47 percent of the quarterly<br />
  247. total.</p>
  248. <p> Net income for the quarter was $25 million, or $.20 per share, compared<br />
  249. with  $60 million, or $.48 a share, in the same quarter a year ago. The<br />
  250. Company's  operating income for the quarter was $34 million, a sequential<br />
  251. improvement of  $150 million from its $116 million operating loss in the<br />
  252. June 1996 quarter.  Included in the fourth quarter's operating results was<br />
  253. an adjustment of prior  period restructuring charges which reduced pre-tax<br />
  254. operating expenses by $28  million. Without this adjustment, net earnings<br />
  255. would have been approximately  $8 million, or $.06 per share.</p>
  256. <p> The Company experienced continued sequential growth in gross margins and<br />
  257. reductions in operating expenses. Gross margins were 22 percent, compared<br />
  258. to  18.5 percent in the June quarter, while operating expenses before the<br />
  259. restructuring adjustment declined to $505 million from $519 million in the<br />
  260. June  quarter.</p>
  261. <p> "We continue to make progress in strengthening Apple's financial<br />
  262. condition, as  our $410 million in positive cash flow from operations<br />
  263. during the quarter  suggests," said Apple Executive Vice President and<br />
  264. Chief Financial Officer Fred  D. Anderson. "We've reduced inventories by<br />
  265. nearly $400 million since June  and completed the quarter with over $1.7<br />
  266. billion in cash and short-term  investments. Gross margins increased due to<br />
  267. several factors, including declining  component costs, improved<br />
  268. manufacturing efficiencies, and sales of previously  reserved inventory. We<br />
  269. achieved further sequential reductions in operating  expenses, primarily in<br />
  270. general and administrative functions."</p>
  271. <p> "By increasing revenues sequentially and fortifying Apple's financial<br />
  272. position in  each of the last two quarters, we have achieved two very<br />
  273. critical goals of  Apple's transformation," said Apple Chairman and Chief<br />
  274. Executive Officer Dr.  Gilbert F. Amelio. "We remain confident about<br />
  275. reaching sustainable profitability  by the end of Q2'97. As we move<br />
  276. forward, our challenges will be to extend our  competitive leadership in<br />
  277. key markets and to reclaim the mantle of industry  pioneer and innovator.</p>
  278. <p> "The question before us is not 'Will Apple survive?'," said Dr.<br />
  279. Amelio,"but  rather, 'How will Apple establish leadership in the emerging<br />
  280. digital era of the  Internet and multimedia?' We plan to do so with strong<br />
  281. management, a  relentless dedication to quality, and a passionate<br />
  282. commitment to our role as  industry innovator."</p>
  283. <p> For the Company's fiscal year ended Sept. 27, 1996, revenues were $9.833<br />
  284. billion, an 11 percent decrease from the prior year. The net loss for the<br />
  285. year was  $816 million, or a loss of $6.59 per share, compared with net<br />
  286. income of $424  million or $3.45 per share in fiscal 1995. The largest<br />
  287. contributors to the fiscal  1996 loss during the year were after-tax<br />
  288. inventory writedowns of $388 million  in the second quarter, net<br />
  289. restructuring charges of $113 million during the year,  and after-tax<br />
  290. warranty and related expenses that were approximately $126  million greater<br />
  291. than historical rates would suggest.</p>
  292. <p> For the year, international revenues accounted for 52 percent of Apple's<br />
  293. net  sales, compared to 48 percent in fiscal 1995.</p>
  294. <p> Except for the historical information contained herein, the statements<br />
  295. regarding  establishing competitive leadership, effecting innovation,<br />
  296. addressing quality  issues, introducing new products, continuing focus on<br />
  297. certain industry growth  areas, and the timing of execution of the<br />
  298. Company's business plans are  forward-looking statements that involve risks<br />
  299. and uncertainties. Potential risks  and uncertainties include, without<br />
  300. limitation, continued competitive pressures in  the marketplace; the effect<br />
  301. competitive factors and the Company's reaction to  them may have on<br />
  302. consumer and business buying decisions with respect to the  Company's<br />
  303. products; the consequences competitive factors and buying  decisions may<br />
  304. have on current inventory valuations; the ability of the Company  to make<br />
  305. timely delivery of successful technological innovations to the<br />
  306. marketplace; the ability of the Company to successfully resolve its quality<br />
  307. issues; the effect of any future losses on the Company's needs for<br />
  308. liquidity; the  effect of the announced business restructuring on the<br />
  309. future performance of the  Company, especially the performance of the<br />
  310. Company's employees; and the  need for any future restructuring, and the<br />
  311. effect that it might have on the  performance of the Company. More<br />
  312. information on potential factors that could  affect the Company's financial<br />
  313. results is included in the Company's Form 10-Q  for the third fiscal<br />
  314. quarter and will also be included in the Company's Form  10-K for the 1996<br />
  315. fiscal year, to be filed with the SEC.</p>
  316. <p> Apple Computer, Inc., a recognized pioneer and innovator in the<br />
  317. information  industry, creates powerful solutions based on easy-to-use<br />
  318. personal computers,  servers, peripherals, software, and personal digital<br />
  319. assistants. Headquartered in  Cupertino, Calif., Apple (NASDAQ:AAPL)<br />
  320. develops, manufactures, licenses,  and markets products, technologies, and<br />
  321. services for the business, education,  consumer, scientific, engineering,<br />
  322. and government markets in over 140  countries.</p>
  323. <p> Katie Cotton<br />
  324.  (408) 974-7269<br />
  325.  email: <a href="mailto:katiec@apple.com">katiec@apple.com</a></p>
  326. <p> Investor Relations Contact:<br />
  327.  Nancy Paxton<br />
  328.  (408) 974-5420<br />
  329.  email: <a href="mailto:paxton1@apple.com">paxton1@apple.com</a></p>
  330. <p> NOTE TO EDITORS: To access Apple press releases, background material, and<br />
  331. contact information on the web, visit The Source at: <a href="http://www.apple.com/source/" title="www.apple.com/source/">www.apple.com/source/</a>.<br />
  332. If  you are interested in receiving Apple press releases by fax, call<br />
  333. 1-800-AAPL-FAX (1-800-227-5329) and enter your PIN number. If you do  not<br />
  334. have a PIN number, contact Apple's Media Helpline at (408) 974-2042 to<br />
  335. request one. If you would like to receive Apple press releases by email,<br />
  336. please  send an email message to <a href="mailto:listproc@guisel.austin.apple.com">listproc@guisel.austin.apple.com</a>. Include<br />
  337. the text  "subscribe pressrel [your full name]" in the body of the message.<br />
  338. To remove  your address from the mailing list send an email message to<br />
  339. <a href="mailto:listproc@guisel.austin.apple.com">listproc@guisel.austin.apple.com</a>. Include the text "remove pressrel" in the<br />
  340. body of the message.</p>
  341. <p>============================================================================</p>
  342. <p>Apple's Q4'96 Financial Results: The Six Key Points<br />
  343.  CUPERTINO, California--Oct. 16, 1996--the following was released by Apple<br />
  344. Computer, Inc.:</p>
  345. <p> 1.Apple's Transformation Progresses.</p>
  346. <p> Apple has achieved many of the most critical goals of its  transformation,<br />
  347. and remains confident about reaching sustainable  profitability by the end<br />
  348. of Q2'97. Sales have not only stabilized, but  grew during this quarter;<br />
  349. and over the last two quarters, the operating  expenses have been<br />
  350. significantly reduced. Going forward, the  Company's challenges will be to<br />
  351. extend its competitive leadership in  key markets and to reclaim the mantle<br />
  352. of industry pioneer and  innovator.</p>
  353. <p> 2.Improved Inventories, Margins, and Costs Containment Produce Continued<br />
  354. Financial Improvement.</p>
  355. <p> Apple continues to make progress in strengthening the Company's  financial<br />
  356. position. The Company achieved $410 million in positive cash  flow from<br />
  357. operations during the quarter, reduced inventories by nearly  $400 million<br />
  358. since June, and ended the quarter with over $1.7 billion in  cash and<br />
  359. short-term investments, which is $610 million more than our  outstanding<br />
  360. debt. Gross margins increased due to several factors,  including declining<br />
  361. component costs and improved manufacturing  efficiencies. The Company<br />
  362. achieved further sequential reductions in  operating expenses, primarily in<br />
  363. general and administrative functions.</p>
  364. <p>3.Apple's Sales Grew During the Quarter.</p>
  365. <p> After stabilizing sales in Q3, revenues increased from $2.179 billion in<br />
  366. the June quarter to $2.321 in the September quarter. Sales in the US  K-12<br />
  367. education market were higher this quarter than in any other  quarter in the<br />
  368. Company's history. Sales to business customers were  also up notably from<br />
  369. last quarter.</p>
  370. <p> 4.Significant Endorsements from Enterprise Customers Continue.</p>
  371. <p> Apple continues to gain new--and extend sales to existing--enterprise<br />
  372. customers. Customers who made major enterprise commitments to  Apple<br />
  373. include: Los Alamos National Labs, Jet Propulsion Labs,  Southwestern Bell<br />
  374. Telephone, Art Institutes International, State of  Texas (CADA), Qualcomm,<br />
  375. and Don Rey Media. Additionally, key  alliances such as the Sun-Apple<br />
  376. alliance are designed to help fortify  Apple's proposition to enterprise<br />
  377. customers. Apple has agreed with Sun  to work together to create<br />
  378. high-performance enterprise intranets and  new Java-based component<br />
  379. development and multimedia technologies.</p>
  380. <p> 5.Apple Renewed Product Offering Imminent.</p>
  381. <p> Parallel to its efforts to stabilize sales and control expenses, Apple is<br />
  382. taking proactive steps to renew its product offering, and to be able to<br />
  383. meet key market expectations, in a competitive way. Examples of this  broad<br />
  384. effort include:</p>
  385. <p> New products and solutions designed for enterprise customers;</p>
  386. <p> * The total renewal of the PowerBook family, with the expected<br />
  387. introduction of a new PowerBook on Oct. 21, 1996, and a  number of<br />
  388. additional new PowerBook models expected to  appear throughout 1997;</p>
  389. <p> * Apple's intention to aggressively pursue the home market with  products<br />
  390. at a range of price points.</p>
  391. <p> * Apple's plans to introduce a Performa system to meet the  specific<br />
  392. demands of the home and education market.</p>
  393. <p> * Apple's plans to offer specially designed software packages for<br />
  394. elementary, middle school, and high school students, in  addition to a<br />
  395. games package.</p>
  396. <p> 6.Expectations for Q1'97: Comparable Sales to Q4'96.</p>
  397. <p> Apple expects sales volumes in the first fiscal quarter to be relatively<br />
  398. comparable to Q4'96 volumes, in spite of anticipated lower PowerBook<br />
  399. sales, due to the start of a planned new product transition over the next<br />
  400. two quarters. The mix will shift towards consumer-oriented products,  and<br />
  401. PowerBooks will be in a ramp-up mode. Beginning in the second  quarter,<br />
  402. Apple expects to begin to experience some modest  year-over-year growth.<br />
  403. Apple feels good about it's ability to sustain  gross margins at or above<br />
  404. the 20 percent level, and expect to hold  operating expenses to around $500<br />
  405. million a quarter.</p>
  406. <p>For the full financial statements for Apple Computer, please point your web<br />
  407. browser of choice at<br />
  408. (<a href="http://product.info.apple.com/pr/press.releases/1997/q1/961016.pr.rel.q4earning" title="http://product.info.apple.com/pr/press.releases/1997/q1/961016.pr.rel.q4earning">http://product.info.apple.com/pr/press.releases/1997/q1/961016.pr.rel.q4...</a><br />
  409. s2.html#operations)</p>
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  512.                 <span class="field-content"><a href="http://forums.applecentral.com/ubbthreads.php/topics/537784/irritating_windows#Post537784" target="_blank">  irritating windows</a></span>
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  520.                 <span class="field-content"><a href="http://forums.applecentral.com/ubbthreads.php/topics/537782/Analyst_sees_iPad_killers_less#Post537782" target="_blank">  Analyst sees iPad killers le...</a></span>
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  528.                 <span class="field-content"><a href="http://forums.applecentral.com/ubbthreads.php/topics/537649/Small_business_accounting_soft#Post537649" target="_blank">  Small business accounting so...</a></span>
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  544.                 <span class="field-content"><a href="http://forums.applecentral.com/ubbthreads.php/topics/537239/Whatapp#Post537239" target="_blank">  Whatapp</a></span>
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  671.     
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  674.       <div class="view-content">
  675.         <div class="views-row views-row-1 views-row-odd views-row-first">
  676.     
  677.   
  678.   
  679.   <div class="views-field-title">
  680.                 <span class="field-content">Introducing the App Hall of Fame!</span>
  681.   </div>
  682.   
  683.   
  684.   <div class="views-field-body">
  685.                 <div class="field-content"><div class="body-row" id="body-row-213485"><div style="background:#F5F5F5;">App discoverability continues to be a real issue.  With the fast churn of apps in the App Store, an app has only a few weeks of promotional life in it before it‚Äôs largely forgotten.  There are a few things developers can do to fix that, but those... | Read more »</div></div></div>
  686.   </div>
  687.   </div>
  688.   <div class="views-row views-row-2 views-row-even">
  689.     
  690.   
  691.   
  692.   <div class="views-field-title">
  693.                 <span class="field-content">Gobliiins Are Coming</span>
  694.   </div>
  695.   
  696.   
  697.   <div class="views-field-body">
  698.                 <div class="field-content"><div class="body-row" id="body-row-213486"><div style="background:#F5F5F5;">In the midst of the huge Q4 launch schedule, the cult classic, Gobliiins, as well as the rest of the trilogy, are being ported to the iPhone in all of their original glory. The Goblins trilogy was a quirky Atari/Amiga game series from the early 90‚Äôs... | Read more »</div></div></div>
  699.   </div>
  700.   </div>
  701.   <div class="views-row views-row-3 views-row-odd">
  702.     
  703.   
  704.   
  705.   <div class="views-field-title">
  706.                 <span class="field-content">myPhoneDesktop ‚Äì Chrome to iPhone Extens...</span>
  707.   </div>
  708.   
  709.   
  710.   <div class="views-field-body">
  711.                 <div class="field-content"><div class="body-row" id="body-row-213469"><div style="background:#F5F5F5;">Anyone who has used myPhoneDesktop knows that it is a fantastic tool for streamlining your onscreen workflow. Instead of having to type line after line into your phone directly, you can use myPhoneDesktop to type from your computer directly into... | Read more »</div></div></div>
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  715.     
  716.   
  717.   
  718.   <div class="views-field-title">
  719.                 <span class="field-content">Classes Review</span>
  720.   </div>
  721.   
  722.   
  723.   <div class="views-field-body">
  724.                 <div class="field-content"><div class="body-row" id="body-row-213470"><div style="background:#F5F5F5;">Developer: Dustlab
  725. Price: $0.99
  726. Version Reviewed: 2.4.7
  727. iPhone Integration Rating: 3 out of 5 stars
  728. User Interface Rating: 4 out of 5 stars
  729. Re-use / Replay Value Rating: 3 out of 5 stars
  730. Overall Rating: 3.33 out of 5 stars
  731.  | Read more »</div></div></div>
  732.   </div>
  733.   </div>
  734.   <div class="views-row views-row-5 views-row-odd">
  735.     
  736.   
  737.   
  738.   <div class="views-field-title">
  739.                 <span class="field-content">AutoVerbal Talking Soundboard Pro helps...</span>
  740.   </div>
  741.   
  742.   
  743.   <div class="views-field-body">
  744.                 <div class="field-content"><div class="body-row" id="body-row-213471"><div style="background:#F5F5F5;">Being able to speak and communicate with others is something that many of us take for granted. It‚Äôs not so easy for many folks though, in particular for individuals with autism spectrum disorders, as well as those who have suffered various brain... | Read more »</div></div></div>
  745.   </div>
  746.   </div>
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  748.     
  749.   
  750.   
  751.   <div class="views-field-title">
  752.                 <span class="field-content">Pocketbooth Review</span>
  753.   </div>
  754.   
  755.   
  756.   <div class="views-field-body">
  757.                 <div class="field-content"><div class="body-row" id="body-row-213472"><div style="background:#F5F5F5;">Developer: Project Box
  758. Price: $0.99
  759. Version Reviewed: 1.0
  760. iPhone Integration Rating: 4 out of 5 stars
  761. User Interface Rating: 4 out of 5 stars
  762. Re-use / Replay Value Rating: 4.5 out of 5 stars
  763. Overall Rating: 4.17 out of 5 stars
  764.  | Read more »</div></div></div>
  765.   </div>
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  767.   <div class="views-row views-row-7 views-row-odd views-row-last">
  768.     
  769.   
  770.   
  771.   <div class="views-field-title">
  772.                 <span class="field-content">Get Your Roast Right With ‚ÄòTime To Roast...</span>
  773.   </div>
  774.   
  775.   
  776.   <div class="views-field-body">
  777.                 <div class="field-content"><div class="body-row" id="body-row-213473"><div style="background:#F5F5F5;">Roasting meat, in the cooking world, is about as simple as it gets. The greatest roast recipe I‚Äôve ever found is from Michael Ruhlman‚Äôs website, with the recipe titled, ‚ÄúThe World‚Äôs Most Difficult Roasted Chicken Recipe.‚Äù | Read more »</div></div></div>
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  892.   <tr>
  893.     <td width="66" class="red_text">Nov. 20:</td>
  894.     <td width="505" class="blue_text" onclick="showLoginDiv()"><a
  895.       href="javascript:void(0);">Take Control of Syncing Data in Sow
  896.     Leopard' released</a></td>
  897.     <td width="17"><img src="images/erow.gif" width="13" height="13"
  898.       alt="" /></td>
  899.   </tr>
  900.   <tr>
  901.     <td class="red_text">Nov. 19:</td>
  902.     <td class="blue_text"><a href="#">Cocktail 4.5 (Leopard Edition)
  903.     released</a></td>
  904.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  905.   </tr>
  906.   <tr>
  907.     <td class="red_text">Nov. 19:</td>
  908.     <td class="blue_text"><a href="#">macProVideo offers new Cubase
  909.     tutorials</a></td>
  910.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  911.   </tr>
  912.   <tr>
  913.     <td class="red_text">Nov. 18:</td>
  914.     <td class="blue_text"><a href="#">S Stardom anounces Safe Capsule, a
  915.     companion piece for Apple's</a></td>
  916.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  917.   </tr>
  918.   <tr>
  919.     <td class="red_text">Nov. 17:</td>
  920.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  921.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  922.   </tr>
  923.   <tr>
  924.     <td class="red_text">Nov. 17:</td>
  925.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  926.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  927.   </tr>
  928.   <tr>
  929.     <td class="red_text">Nov. 17:</td>
  930.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  931.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  932.   </tr>
  933.   <tr>
  934.     <td class="red_text">Nov. 17:</td>
  935.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  936.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  937.   </tr>
  938.   <tr>
  939.     <td class="red_text">Nov. 17:</td>
  940.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  941.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  942.   </tr>
  943.   <tr>
  944.     <td class="red_text">Nov. 17:</td>
  945.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  946.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  947.   </tr>
  948.   <tr>
  949.     <td class="red_text">Nov. 17:</td>
  950.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  951.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  952.   </tr>
  953.   <tr>
  954.     <td class="red_text">Nov. 17:</td>
  955.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  956.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  957.   </tr>
  958.   <tr>
  959.     <td class="red_text">Nov. 17:</td>
  960.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  961.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  962.   </tr>
  963.   <tr>
  964.     <td class="red_text">Nov. 17:</td>
  965.     <td class="blue_text"><a href="#">Ableton releases Max for Live</a></td>
  966.     <td><img src="images/erow.gif" width="13" height="13" alt="" /></td>
  967.   </tr>
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  983. <LI>Below that are MacTech's scanners, which scan the web and organizes it into News, Rumors, and Documentation.  Updated every 15 minutes.
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  989. <LI>And, don't forget the Apple Central area, and ads throughout the site.  Advertisers are what make the site possible</UL>
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