14 DAY TRIAL // The iPhone hype has pushed all of Apple's other products to second place when it comes to the public's mindshare these days. Despite this, Apple is far from being a one trick pony and all their other products are doing better than ever in what has proven to be the company's best June quarter in history.
The Cupertino Company reported another record quarter, earning $5.41 billion in revenue due to record Mac sales and continuing strong demand for iPods. Compared to the previous June quarter, Apple's revenue grew almost 25 percent, earning investors $0.92 cents per share. Apple generated a net income of $818 million to rise 73 percent over the year-ago quarter, even after paying taxes at 32 percent. The Cupertino-based company increased its cash balance to more than $13.8 billion with cash flow operations of over $1.2 billion.
"Total company gross margin was 36.9 percent, higher than our guidance primarily due to favorable commodity costs, a different product pricing environment from what we expected, a more favorable product mix, and a greater mix of direct sales," Apple's financial chief Peter Oppenheimer said. "Operating expenses were $954 million, including $55 million in stock-based compensation expense. We capitalized $26 million of software development expense during the quarter."
For the next quarter, Apple has a revenue of around $5.7 billion, with a total quarterly cost of non-cash stock-based compensation of around $69 million. Oppenheimer is looking to a gross margin of 29.5 percent, reflecting approximately $10 million related to stock-based compensation expense.
"We are guiding gross margin down sequentially as a result of the back to school promotion, higher commodity costs, and product transitions," he said, adding that investors should look for about $0.65 earnings-per-share, including an anticipated $0.5 cents per-share related to non-cash stock-based compensation expense.
As a result, shares of Apple Inc. peaked over $150 per share in after-hours trading, gaining nearly $13 or 9.41% over the closing price of $137.26.