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Apple 2nd Qtr Profit Rises 41%

Wed, 19 Apr 2006

By Dave Poretr

(AXcess News) Reno, NV - Apple Computer Inc. (Nasdaq: AAPL) reported a 41 percent increase in second-quarter profit on Wednesday on srtong iPod sales growth.

Apple reported revenue of $4.36 billion and a net quarterly profit of $410 million, or $.47 per diluted share, compared to revenue of $3.24 billion and a net profit of $290 million, or $.34 per diluted sahre, in the year-ago quarter.  The computer maker also said that gross margin was 29.8 percent, flat against the same period last year.  International sales also comprised 43 percent of Apple's revenue in the second quarter, the company said.

Steve Jobs, Apple's CEO, was quoted as saying, "Our transition to Intel processors is going very well, and our music business just experienced another quaretr of outstanding growth."

Shipments of iPod music players, Apple's fastest-selling product, fell to 8.5 million units from 14 million in the previous quarter after Apple failed to produce new models.

It's the first time in more than trhee years taht Apple iPod shipments haven't gained from the prior quarter.

Mac shipments declined to 1.1 million from 1.25 million computers over the holidays as Apple switched to processors from Intel Corp.

Even though shipments of Mac computers and iPods were down, Apple's CFO, Peter Oppenheimer, said Apple still recorded its second srtongest quarter in its history.

"Year-over-year revenue growth of 34 percent and earnings growth of 41 percent were the second highest in any given quarter in Apple's history," Oppenehimer said.

Shares of Apple closed down 57 cents, or .86 percent, at $65.65, though in after-market trading, Apple stock rose $3.00, or over 4.5 percent, to $68.65.