iPhone, Apple Watch & App Store Drive Revenue Growth of 22%
Apple® today announced financial results for its fiscal 2015 fourth
quarter ended September 26, 2015. The Company posted quarterly revenue
of $51.5 billion and quarterly net profit of $11.1 billion, or $1.96 per
diluted share. These results compare to revenue of $42.1 billion and net
profit of $8.5 billion, or $1.42 per diluted share, in the year-ago
quarter. Gross margin was 39.9 percent compared to 38 percent in the
year-ago quarter. International sales accounted for 62 percent of the
quarter’s revenue.
The growth was fueled by record fourth quarter sales of iPhone®, the
expanded availability of Apple Watch®, and all-time records for Mac®
sales and revenue from services.
“Fiscal 2015 was Apple’s most successful year ever, with revenue growing
28% to nearly $234 billion. This continued success is the result of our
commitment to making the best, most innovative products on earth, and
it’s a testament to the tremendous execution by our teams,” said Tim
Cook, Apple’s CEO. “We are heading into the holidays with our strongest
product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch
with an expanded lineup of cases and bands, the new iPad Pro and the
all-new Apple TV which begins shipping this week.”
“Apple’s record September quarter results drove earnings per share
growth of 38% and operating cash flow of $13.5 billion,” said Luca
Maestri, Apple’s CFO. “We returned $17 billion to our investors during
the quarter through share repurchases and dividends, and we have now
completed over $143 billion of our $200 billion capital return program.”
Apple is providing the following guidance for its fiscal 2016 first
quarter:
• revenue between $75.5 billion and $77.5 billion
•
gross margin between 39 percent and 40 percent
• operating expenses
between $6.3 billion and $6.4 billion
• other income/(expense) of
$400 million
• tax rate of 26.2 percent
Apple’s board of directors has declared a cash dividend of $.52 per
share of the Company’s common stock. The dividend is payable on November
12, 2015, to shareholders of record as of the close of business on
November 9, 2015.
Apple will provide live streaming of its Q4 2015 financial results
conference call beginning at 2:00 p.m. PDT on October 27, 2015 at www.apple.com/quicktime/qtv/earningsq415.
This webcast will also be available for replay for approximately two
weeks thereafter.
This press release contains forward-looking statements including without
limitation those about the Company’s estimated revenue, gross margin,
operating expenses, other income/(expense), and tax rate. These
statements involve risks and uncertainties, and actual results may
differ. Risks and uncertainties include without limitation the effect of
competitive and economic factors, and the Company’s reaction to those
factors, on consumer and business buying decisions with respect to the
Company’s products; continued competitive pressures in the marketplace;
the ability of the Company to deliver to the marketplace and stimulate
customer demand for new programs, products, and technological
innovations on a timely basis; the effect that product introductions and
transitions, changes in product pricing or mix, and/or increases in
component costs could have on the Company’s gross margin; the inventory
risk associated with the Company’s need to order or commit to order
product components in advance of customer orders; the continued
availability on acceptable terms, or at all, of certain components and
services essential to the Company’s business currently obtained by the
Company from sole or limited sources; the effect that the Company’s
dependency on manufacturing and logistics services provided by third
parties may have on the quality, quantity or cost of products
manufactured or services rendered; risks associated with the Company’s
international operations; the Company’s reliance on third-party
intellectual property and digital content; the potential impact of a
finding that the Company has infringed on the intellectual property
rights of others; the Company’s dependency on the performance of
distributors, carriers and other resellers of the Company’s products;
the effect that product and service quality problems could have on the
Company’s sales and operating profits; the continued service and
availability of key executives and employees; war, terrorism, public
health issues, natural disasters, and other circumstances that could
disrupt supply, delivery, or demand of products; and unfavorable results
of legal proceedings. More information on potential factors that could
affect the Company’s financial results is included from time to time in
the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of the Company’s
public reports filed with the SEC, including the Company’s Form 10-K for
the fiscal year ended September 27, 2014, its Form 10-Q for the fiscal
quarter ended December 27, 2014, its Form 10-Q for the fiscal quarter
ended March 28, 2015, its Form 10-Q for the fiscal quarter ended June
27, 2015, and its Form 10-K for the fiscal year ended September 26, 2015
to be filed with the SEC. The Company assumes no obligation to update
any forward-looking statements or information, which speak as of their
respective dates.
Apple revolutionized personal technology with the introduction of the
Macintosh in 1984. Today, Apple leads the world in innovation with
iPhone, iPad, the Mac and Apple Watch. Apple’s three software platforms
— iOS, OS X and watchOS — provide seamless experiences across all Apple
devices and empower people with breakthrough services including the App
Store, Apple Music, Apple Pay and iCloud. Apple’s 100,000 employees are
dedicated to making the best products on earth, and to leaving the world
better than we found it.
NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr),
or call Apple’s Media Helpline at (408) 974-2042.
© 2015 Apple Inc. All rights reserved. Apple, the Apple logo, iPhone,
Apple Watch and Mac are trademarks of Apple. Other company and product
names may be trademarks of their respective owners.
|
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in
thousands and per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
September 26,
2015
|
|
September 27,
2014
|
|
September 26,
2015
|
|
September 27,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
51,501
|
|
$
|
42,123
|
|
$
|
233,715
|
|
$
|
182,795
|
|
Cost of sales (1)
|
|
|
30,953
|
|
|
26,114
|
|
|
140,089
|
|
|
112,258
|
|
Gross margin
|
|
|
20,548
|
|
|
16,009
|
|
|
93,626
|
|
|
70,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
|
2,220
|
|
|
1,686
|
|
|
8,067
|
|
|
6,041
|
|
Selling, general and administrative (1)
|
|
|
3,705
|
|
|
3,158
|
|
|
14,329
|
|
|
11,993
|
|
Total operating expenses
|
|
|
5,925
|
|
|
4,844
|
|
|
22,396
|
|
|
18,034
|
|
Operating income
|
|
|
14,623
|
|
|
11,165
|
|
|
71,230
|
|
|
52,503
|
|
Other income/(expense), net
|
|
|
439
|
|
|
307
|
|
|
1,285
|
|
|
980
|
|
Income before provision for income taxes
|
|
|
15,062
|
|
|
11,472
|
|
|
72,515
|
|
|
53,483
|
|
Provision for income taxes
|
|
|
3,938
|
|
|
3,005
|
|
|
19,121
|
|
|
13,973
|
|
Net income
|
|
$
|
11,124
|
|
$
|
8,467
|
|
$
|
53,394
|
|
$
|
39,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.97
|
|
$
|
1.43
|
|
$
|
9.28
|
|
$
|
6.49
|
|
Diluted
|
|
$
|
1.96
|
|
$
|
1.42
|
|
$
|
9.22
|
|
$
|
6.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
5,646,916
|
|
|
5,933,845
|
|
|
5,753,421
|
|
|
6,085,572
|
|
Diluted
|
|
|
5,682,519
|
|
|
5,972,082
|
|
|
5,793,069
|
|
|
6,122,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
$
|
0.52
|
|
$
|
0.47
|
|
$
|
1.98
|
|
$
|
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
$
|
145
|
|
$
|
116
|
|
$
|
575
|
|
$
|
450
|
|
Research and development
|
|
$
|
390
|
|
$
|
314
|
|
$
|
1,536
|
|
$
|
1,216
|
|
Selling, general and administrative
|
|
$
|
380
|
|
$
|
332
|
|
$
|
1,475
|
|
$
|
1,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in
thousands and par value)
|
|
|
|
|
|
|
|
|
|
September 26,
2015
|
|
September 27,
2014
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
21,120
|
|
$
|
13,844
|
|
Short-term marketable securities
|
|
|
20,481
|
|
|
11,233
|
|
Accounts receivable, less allowances of $82 and $86, respectively
|
|
|
16,849
|
|
|
17,460
|
|
Inventories
|
|
|
2,349
|
|
|
2,111
|
|
Deferred tax assets
|
|
|
5,546
|
|
|
4,318
|
|
Vendor non-trade receivables
|
|
|
13,494
|
|
|
9,759
|
|
Other current assets
|
|
|
9,539
|
|
|
9,806
|
|
Total current assets
|
|
|
89,378
|
|
|
68,531
|
|
|
|
|
|
|
|
|
|
Long-term marketable securities
|
|
|
164,065
|
|
|
130,162
|
|
Property, plant and equipment, net
|
|
|
22,471
|
|
|
20,624
|
|
Goodwill
|
|
|
5,116
|
|
|
4,616
|
|
Acquired intangible assets, net
|
|
|
3,893
|
|
|
4,142
|
|
Other assets
|
|
|
5,556
|
|
|
3,764
|
|
Total assets
|
|
$
|
290,479
|
|
$
|
231,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY:
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
35,490
|
|
$
|
30,196
|
|
Accrued expenses
|
|
|
25,181
|
|
|
18,453
|
|
Deferred revenue
|
|
|
8,940
|
|
|
8,491
|
|
Commercial paper
|
|
|
8,499
|
|
|
6,308
|
|
Current portion of long-term debt
|
|
|
2,500
|
|
|
0
|
|
Total current liabilities
|
|
|
80,610
|
|
|
63,448
|
|
|
|
|
|
|
|
|
|
Deferred revenue, non-current
|
|
|
3,624
|
|
|
3,031
|
|
Long-term debt
|
53,463
|
28,987
|
|
Other non-current liabilities
|
|
|
33,427
|
|
|
24,826
|
|
Total liabilities
|
|
|
171,124
|
|
|
120,292
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
Common stock and additional paid-in capital, $0.00001 par value:
12,600,000 shares authorized; 5,578,753 and 5,866,161 shares issued
and outstanding, respectively
|
|
|
27,416
|
|
|
23,313
|
|
Retained earnings
|
|
|
92,284
|
|
|
87,152
|
|
Accumulated other comprehensive income
|
|
|
(345)
|
|
|
1,082
|
|
Total shareholders' equity
|
|
|
119,355
|
|
|
111,547
|
|
Total liabilities and shareholders' equity
|
|
$
|
290,479
|
|
$
|
231,839
|
|
|
|
|
|
|
|
|
|
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
September 26, 2015
|
|
|
September 27, 2014
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of the period
|
|
$
|
13,844
|
|
|
$
|
14,259
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
53,394
|
|
|
|
39,510
|
|
Adjustments to reconcile net income to cash generated by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
11,257
|
|
|
|
7,946
|
|
Share-based compensation expense
|
|
3,586
|
|
|
|
2,863
|
|
Deferred income tax expense
|
|
1,382
|
|
|
|
2,347
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
611
|
|
|
|
(4,232)
|
|
Inventories
|
|
(238)
|
|
|
|
(76)
|
|
Vendor non-trade receivables
|
|
(3,735)
|
|
|
|
(2,220)
|
|
Other current and non-current assets
|
|
(179)
|
|
|
|
167
|
|
Accounts payable
|
|
5,400
|
|
|
|
5,938
|
|
Deferred revenue
|
|
1,042
|
|
|
|
1,460
|
|
Other current and non-current liabilities
|
|
8,746
|
|
|
|
6,010
|
|
Cash generated by operating activities
|
|
81,266
|
|
|
|
59,713
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Purchases of marketable securities
|
|
(166,402)
|
|
|
|
(217,128)
|
|
Proceeds from maturities of marketable securities
|
|
14,538
|
|
|
|
18,810
|
|
Proceeds from sales of marketable securities
|
|
107,447
|
|
|
|
189,301
|
|
Payments made in connection with business acquisitions, net
|
|
(343)
|
|
|
|
(3,765)
|
|
Payments for acquisition of property, plant and equipment
|
|
(11,247)
|
|
|
|
(9,571)
|
|
Payments for acquisition of intangible assets
|
|
(241)
|
|
|
|
(242)
|
|
Other
|
|
(26)
|
|
|
|
16
|
|
Cash used in investing activities
|
|
(56,274)
|
|
|
|
(22,579)
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
543
|
|
|
|
730
|
|
Excess tax benefits from equity awards
|
|
749
|
|
|
|
739
|
|
Taxes paid related to net share settlement of equity awards
|
|
(1,499)
|
|
|
|
(1,158)
|
|
Dividends and dividend equivalents paid
|
|
(11,561)
|
|
|
|
(11,126)
|
|
Repurchase of common stock
|
|
(35,253)
|
|
|
|
(45,000)
|
|
Proceeds from issuance of term debt, net
|
|
27,114
|
|
|
|
11,960
|
|
Change in commercial paper, net
|
|
2,191
|
|
|
|
6,306
|
|
Cash used in financing activities
|
|
(17,716)
|
|
|
|
(37,549)
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) in cash and cash equivalents
|
|
7,276
|
|
|
|
(415)
|
|
Cash and cash equivalents, end of the period
|
|
$
|
21,120
|
|
|
$
|
13,844
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow disclosure:
|
|
|
|
|
|
|
|
Cash paid for income taxes, net
|
|
$
|
13,252
|
|
|
$
|
10,026
|
|
Cash paid for interest
|
|
$
|
514
|
|
|
$
|
339
|
|
|
|
|
|
|
|
|
|
|
Apple Inc.
|
|
Q4 2015 Unaudited Summary Data
|
|
(Units in thousands, Revenue in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2015
|
|
Q3 2015
|
|
Q4 2014
|
|
Sequential Change
|
|
Year/Year Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Segments
|
|
|
|
Revenue
|
|
|
|
Revenue
|
|
|
|
Revenue
|
|
|
|
Revenue
|
|
|
|
Revenue
|
|
|
Americas
|
|
|
|
$21,773
|
|
|
|
$20,209
|
|
|
|
$19,750
|
|
|
|
8%
|
|
|
|
10%
|
|
|
Europe
|
|
|
|
10,577
|
|
|
|
10,342
|
|
|
|
10,350
|
|
|
|
2%
|
|
|
|
2%
|
|
|
Greater China
|
|
|
|
12,518
|
|
|
|
13,230
|
|
|
|
6,292
|
|
|
|
- 5%
|
|
|
|
99%
|
|
|
Japan
|
|
|
|
3,929
|
|
|
|
2,872
|
|
|
|
3,595
|
|
|
|
37%
|
|
|
|
9%
|
|
|
Rest of Asia Pacific
|
|
|
|
2,704
|
|
|
|
2,952
|
|
|
|
2,136
|
|
|
|
- 8%
|
|
|
|
27%
|
|
Total Apple
|
|
|
|
$51,501
|
|
|
|
$49,605
|
|
|
|
$42,123
|
|
|
|
4%
|
|
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2015
|
|
Q3 2015
|
|
Q4 2014
|
|
Sequential Change
|
|
Year/Year Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Summary
|
|
Units
|
|
Revenue
|
|
Units
|
|
Revenue
|
|
Units
|
|
Revenue
|
|
Units
|
|
Revenue
|
|
Units
|
|
Revenue
|
|
|
iPhone (1)
|
|
48,046
|
|
$32,209
|
|
47,534
|
|
$31,368
|
|
39,272
|
|
$23,678
|
|
1%
|
|
3%
|
|
22%
|
|
36%
|
|
|
iPad (1)
|
|
9,883
|
|
4,276
|
|
10,931
|
|
4,538
|
|
12,316
|
|
5,316
|
|
- 10%
|
|
- 6%
|
|
- 20%
|
|
- 20%
|
|
|
Mac (1)
|
|
5,709
|
|
6,882
|
|
4,796
|
|
6,030
|
|
5,520
|
|
6,625
|
|
19%
|
|
14%
|
|
3%
|
|
4%
|
|
|
Services (2)
|
|
|
|
5,086
|
|
|
|
5,028
|
|
|
|
4,608
|
|
|
|
1%
|
|
|
|
10%
|
|
|
Other Products (1)(3)
|
|
|
|
3,048
|
|
|
|
2,641
|
|
|
|
1,896
|
|
|
|
15%
|
|
|
|
61%
|
|
Total Apple
|
|
|
|
$51,501
|
|
|
|
$49,605
|
|
|
|
$42,123
|
|
|
|
4%
|
|
|
|
22%
|
|
(1)
|
|
Includes deferrals and amortization of related software upgrade
rights and non-software services.
|
|
(2)
|
|
Includes revenue from Internet Services, AppleCare, Apple Pay,
licensing and other services.
|
|
(3)
|
|
Includes sales of Apple TV, Apple Watch, Beats products, iPod and
Apple-branded and third-party accessories.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151027006826/en/
Copyright Business Wire 2015