Whoa! Apple doesn't just "beat the Street", it goes ballistic!

Revenue Increases 37 Percent Year-Over-Year

iPod Shipments Top 2 million

CUPERTINO, Calif., Oct. 13 /PRNewswire-FirstCall/ -- Apple(R) today
announced financial results for its fiscal 2004 fourth quarter ended September
25, 2004. For the quarter, the Company posted a net profit of $106 million, or
$.26 per diluted share. These results compare to a net profit of $44 million,
or $.12 per diluted share, in the year-ago quarter. Revenue for the quarter
was $2.35 billion, up 37 percent from the year-ago quarter. Gross margin was
27.0 percent, up from 26.6 percent in the year-ago quarter. International
sales accounted for 37 percent of the quarter's revenue.
The quarter's results include an after-tax restructuring charge of
$4 million. Excluding this charge, the Company's net profit for the quarter
would have been $110 million, or $.27 per diluted share.
Apple shipped 836,000 Macintosh(R) units and 2,016,000 iPods during the
quarter, representing a 6 percent increase in CPU units and a 500 percent
increase in iPods over the year-ago quarter.
"We are thrilled to report our highest fourth quarter revenue in nine
years," said Steve Jobs, Apple's CEO. "We shipped over 2 million iPods, our
Retail store revenue grew 95 percent year-over-year, and the new iMac G5 has
received phenomenal reviews and is off to a great start."
"We're pleased to report 37 percent revenue growth for the quarter and
operating margin above 5 percent," said Peter Oppenheimer, Apple's CFO.
"Looking ahead to the first quarter of fiscal 2005, we expect revenue of
between $2.8 and $2.9 billion, operating margin above 7 percent and earnings
per diluted share of $.39 to $.42."
For the year, the Company reported net income of $276 million on revenue
of $8.28 billion compared to net income of $69 million on revenue of
$6.21 billion in 2003.

Non-GAAP Measures
The Company believes that presentation of results excluding items such as
restructuring charges and investment gains provides meaningful supplemental
information to both management and investors that is indicative of the
Company's core operating results and facilitates comparison of operating
results across reporting periods. The Company includes a full income statement
reconciliation of these non-GAAP measures to provide a more complete view of
their effect on results.
Apple will provide live streaming of its Q4 2004 financial results
conference call utilizing QuickTime(TM), Apple's standards-based technology
for live and on-demand audio and video streaming. The live webcast will begin
at 2:00 p.m. PDT on Wednesday, October 13, 2004 at
http://www.apple.com/quicktime/qtv/earningsq404/ and will also be available
for replay. The QuickTime player is available free for Macintosh and Windows
users at http://www.apple.com/quicktime.

This press release contains forward-looking statements about the Company's
estimated revenue and earnings for the first quarter of fiscal 2005. These
statements involve risks and uncertainties and actual results may differ.
Potential risks and uncertainties include continued competitive pressures in
the marketplace; the effect competitive and economic factors and the Company's
reaction to them may have on consumer and business buying decisions with
respect to the Company's products; the ability of the Company to make timely
delivery of new programs, products and successful technological innovations to
the marketplace; the continued availability of certain components and services
essential to the Company's business currently obtained by the Company from
sole or limited sources, including the timely resolution of manufacturing
issues associated with the G5 microprocessors used in many of the Company's
Macintosh systems; possible disruption in commercial activities caused by
terrorist activity and armed conflict, such as changes in logistics and
security arrangements, and reduced end-user purchases relative to
expectations; possible disruption in commercial activity as a result of major
health concerns including epidemics; risks associated with the Company's
retail initiative including significant investment cost, uncertain consumer
acceptance and potential impact on existing reseller relationships; 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; the Company's reliance on the availability
of third-party music content, and the ability of the Company to successfully
evolve its operating system and attract sufficient Macintosh developers. More
information on potential factors that could affect the Company's financial
results is included from time to time in the Company's public reports filed
with the SEC, including the Company's Forms 10-Q for the quarters ended
December 27, 2003, March 27, 2004 and June 26, 2004; and the Company's Form
10-K for the 2004 fiscal year 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 ignited the personal computer revolution in the 1970s with the Apple
II and reinvented the personal computer in the 1980s with the Macintosh.
Today, Apple continues to lead the industry in innovation with its
award-winning desktop and notebook computers, OS X operating system, and iLife
and professional applications. Apple is also spearheading the digital music
revolution with its iPod portable music players and iTunes online music store.

NOTE: Apple, the Apple logo, Macintosh, Mac, Mac OS, QuickTime, iPod and
iMac are either registered trademarks or trademarks of Apple. Other company
and product names may be trademarks of their respective owners.


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share amounts)

ASSETS:


September 25, September 27,
2004 2003
Current assets:
Cash and cash equivalents $2,969 $3,396
Short-term investments 2,495 1,170
Accounts receivable, less allowances
of $47 and $49, respectively 774 766
Inventories 101 56
Deferred tax assets 231 190
Other current assets 485 309
Total current assets 7,055 5,887
Property, plant, and equipment, net 707 669
Goodwill 80 85
Acquired intangible assets 17 24
Other assets 191 150
Total assets $8,050 $6,815

LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $1,451 $1,154
Accrued expenses 1,229 899
Current debt -- 304
Total current liabilities 2,680 2,357
Deferred tax liabilities and other non-current
liabilities 294 235
Total liabilities 2,974 2,592

Commitments and contingencies

Shareholders' equity:
Common stock, no par value; 900,000,000 shares
authorized; 391,443,617 and 366,726,584 shares
issued and outstanding, respectively 2,514 1,926
Deferred stock compensation (93) (62)
Retained earnings 2,670 2,394
Accumulated other comprehensive income (loss) (15) (35)
Total shareholders' equity 5,076 4,223
Total liabilities and shareholders' equity $8,050 $6,815


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share amounts)

THREE MONTHS ENDED TWELVE MONTHS ENDED

Sept. 25, Sept. 27, Sept. 25, Sept. 27,
2004 2003 2004 2003

Net sales $2,350 $1,715 $8,279 $6,207
Cost of sales 1,716 1,259 6,020 4,499
Gross margin 634 456 2,259 1,708

Operating expenses:
Research and
development 122 111 489 471
Selling, general, and
administrative 379 314 1,421 1,212
Restructuring costs 5 -- 23 26
Total operating
expenses 506 425 1,933 1,709

Operating income (loss) 128 31 326 (1)

Other income and expense:
Gain on sales of
non-current
investments -- 8 4 10
Interest and other
income, net 19 16 53 83
Total other income
and expense 19 24 57 93

Income before provision
for income taxes 147 55 383 92
Provision for income
taxes 41 14 107 24

Income before accounting
change 106 41 276 68

Cumulative effect of
accounting change, net -- 3 -- 1

Net income $106 $44 $276 $69

Earnings per common
share before
accounting change:
Basic $0.28 $0.11 $0.74 $0.19
Diluted $0.26 $0.11 $0.71 $0.19

Earnings per common
share:
Basic $0.28 $0.12 $0.74 $0.19
Diluted $0.26 $0.12 $0.71 $0.19

Shares used in
computing earnings
per share (in
thousands):
Basic 383,463 362,191 371,590 360,631
Diluted 402,906 370,733 387,311 363,466


UNAUDITED NON-GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except share and per share amounts)

THREE MONTHS ENDED SEPTEMBER 25, 2004

Non-GAAP
As Reported Adjustments Non-GAAP

Net sales $2,350 $2,350
Cost of sales 1,716 1,716
Gross margin 634 634

Operating expenses:
Research and development 122 122
Selling, general, and
administrative 379 379
Restructuring costs 5 (5)(a) --
Total operating expenses 506 (5) 501

Operating income 128 5 133

Other income and expense:
Interest and other income,
net 19 19
Total other income and
expense 19 19

Income before provision for
income taxes 147 5 152

Provision for income taxes 41 1(b) 42

Net income $106 $4 $110

Earnings per common share:
Basic $0.28 $0.29

Diluted $0.26 $0.27

Shares used in computing
earnings per share
(in thousands):

Basic 383,463 383,463
Diluted 402,906 402,906

Notes:
(a) Pre-tax restructuring costs
(b) Tax impact of restructuring costs


UNAUDITED NON-GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except share and per share amounts)

TWELVE MONTHS ENDED SEPTEMBER 25, 2004

Non-GAAP
As Reported Adjustments Non-GAAP

Net sales $8,279 $8,279
Cost of sales 6,020 6,020
Gross margin 2,259 2,259

Operating expenses:
Research and development 489 489
Selling, general, and
administrative 1,421 1,421
Restructuring costs 23 (23)(a) --
Total operating expenses 1,933 (23) 1,910

Operating income 326 23 349

Other income and expense:
Gain on sales of
non-current investments 4 (4)(b) --
Interest and other income,
net 53 53

Total other income and
expense 57 (4) 53

Income before provision for
income taxes 383 19 402

Provision for income taxes 107 5(c) 112

Net income $276 $14 $290


Earnings per common share:
Basic $0.74 $0.78

Diluted $0.71 $0.75

Shares used in computing
earnings per share
(in thousands):

Basic 371,590 371,590
Diluted 387,311 387,311

Notes:
(a) Pre-tax restructuring costs
(b) Pre-tax gain on sales of non-current investments
(c) Tax impact of restructuring costs and gain on sales of non-current
investments


Apple Computer, Inc.
Q404 Unaudited Summary Data

Q304 Actual Q403 Actual Q404 Actual

CPU CPU
CPU Units Units
Operating Segments Units k Rev $m k Rev $m k Rev $m
Americas 472 $1,018 453 $928 471 $1,196
Europe 191 408 158 323 155 423
Japan 82 172 76 171 56 175
Retail 73 270 59 193 98 376
Other Segments (1) 58 146 41 100 56 180
Total Operating Segments 876 $2,014 787 $1,715 836 $2,350



Sequential Change Year/Year Change
Operating Segments Units Revenue Units Revenue
Americas 0% 17% 4% 29%
Europe -19% 4% -2% 31%
Japan -32% 2% -26% 2%
Retail 34% 39% 66% 95%
Other Segments (1) -3% 23% 37% 80%
Total Operating Segments -5% 17% 6% 37%


Q304 Actual Q403 Actual Q404 Actual

Units Units
Units k Rev $m k Rev $m k Rev $m

Product Summary
iMac (2) 243 $235 253 $279 229 $216
iBook 240 261 137 154 238 256
Power Mac (3) 173 332 221 419 156 340
PowerBook 220 435 176 348 213 419
Subtotal CPUs 876 1,263 787 1,200 836 1,231
iPod 860 249 336 121 2,016 537
Other Music Products (4) NM 73 NM 14 NM 98
Peripherals & Other HW NM 219 NM 208 NM 271
Software & Other NM 210 NM 172 NM 213

Total Apple $2,014 $1,715 $2,350


Sequential Change Year/Year Change
Units Revenue Units Revenue

Product Summary
iMac (2) -6% -8% -9% -23%
iBook -1% -2% 74% 66%
Power Mac (3) -10% 2% -29% -19%
PowerBook -3% -4% 21% 20%
Subtotal CPUs -5% -3% 6% 3%
iPod 134% 116% 500% 344%
Other Music Products (4) NM 34% NM 600%
Peripherals & Other HW NM 24% NM 30%
Software & Other NM 1% NM 24%

Total Apple 17% 37%


(1) Other Segments include Asia Pacific and FileMaker.
(2) Includes eMac product line.
(3) Includes Xserve product line.
(4) Other Music Products consists of iTunes Music Store sales and
iPod-related services and accessories.

NM: Not Meaningful




SOURCE Apple Computer, Inc.
Web Site: http://www.apple.com

Damn. Just think how great it would be if there hadn't been Pmac delays! Q1 is gonna be incredible.

2 MILLION iPods?

WE'RE #1 ... WE'RE #1

So how much will the stock fall tomorrow?

Stock is up over $3.00 in aftermarket trading. Tomorrow it will go down as some investors take a profit. Normal. (It's very much overvalued).