IP Democracy: Apple's Profit Skyrockets as Board Backs Jobs

Apple, like so many of its high-tech peers these days, is golden. Just months away from releasing its market-changing iPhone, the Cupertino, CA-based tech and media company keeps printing money and profits from its market-changing iPod and highly praised Mac computer line, according to the company’s fiscal Q2 07 earnings report issued today.

Apple Q2 Revenue and Net Income ($ in mil.)
Quarter	Net Sales	YOY Change	Net Income	YOY Change
Q2 03	$    1,475	na	$              14	na
Q2 04	$    1,909	29%	$              46	229%
Q2 05	$    3,243	70%	$            290	530%
Q2 06	$    4,359	34%	$            410	41%
Q2 07	$    5,264	21%	$            770	88%

Even during its seasonally weakest quarter, Apple keeps outshining itself. Revenues jumped 21% year-over-year to $5.3 billion, but net income soared by 88% to $770 million. (Note from the table below that Apple’s net income for its fiscal Q2 was only $14 million in 2003. How far the company has rebounded.)

Fueling the continued strong growth was continued strong sales in iPods and Macs. During the quarter, Apple shipped 10.5 million iPods, up 24% year-over-year. Macs sold briskly too — total computer shipments were 1.5 million during the quarter, up 36% year-over-year.

Apple Operating and Financial Data
(units in 000s, revenue in mils.)
	Q203	Q204	Q205	Q206	Q2 07
	Units	Units	Units	Units	Units
Product Summary
Desktops*	412	391	608	614	626
Portables**	299	358	462	498	891
Subtotal CPUs	711	749	1,070	1,112	1,517
iPod	NA	807	5,311	8,526	10,549
*Includes iMac, eMac, Mac mini, PowerMac and Xserve product lines.
**Includes iBook and PowerBook product lines.

With this kind of track record, Apple and its CEO should be even more impervious to the Feds as they move forward with options backdating charges against the company’s former General Counsel. To reinforce its hope that the government backs away from Steve Jobs, a group of influential board members issued a statement today dismissing the allegations of former CFO Fred Anderson that Jobs was warned about the improriety of the options backdating.

The A-list of directors concluded that

We have complete confidence in the conclusions of Apple’s independent investigation, and in Steve’s integrity and his ability to lead Apple.

Posted by Cynthia Brumfield on April 25, 2007 7:18 PM to IP Democracy