news/AAPL/2023.02.02/Apple reports first quarter results.txt

Apple® today announced financial results for its fiscal 2023 first quarter ended December 31, 2022. The Company posted quarterly revenue of $117.2 billion, down 5 percent year over year, and quarterly earnings per diluted share of $1.88.

“As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do,” said Tim Cook, Apple’s CEO. “During the December quarter, we achieved a major milestone and are excited to report that we now have more than 2 billion active devices as part of our growing installed base.”

“We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis,” said Luca Maestri, Apple’s CFO. “We generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while continuing to invest in our long-term growth plans.”

Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on February 16, 2023 to shareholders of record as of the close of business on February 13, 2023.

Apple will provide live streaming of its Q1 2023 financial results conference call beginning at 2:00 p.m. PT on February 2, 2023 at apple.com/investor/earnings-call. This webcast will be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the payment of the Company’s quarterly dividend, its installed base growth, and its long-term plans. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, war, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. 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, Mac, Apple Watch, and Apple TV. Apple’s five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — 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 more than 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 Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.

© 2023 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares which are reflected in thousands and per share amounts)

 

Three Months Ended

 

December 31, 
2022

 

December 25, 
2021

Net sales:

 

 

 

Products

$

96,388

 

 

$

104,429

 

Services

 

20,766

 

 

 

19,516

 

Total net sales (1)

 

117,154

 

 

 

123,945

 

Cost of sales:

 

 

 

Products

 

60,765

 

 

 

64,309

 

Services

 

6,057

 

 

 

5,393

 

Total cost of sales

 

66,822

 

 

 

69,702

 

Gross margin

 

50,332

 

 

 

54,243

 

 

 

 

 

Operating expenses:

 

 

 

Research and development

 

7,709

 

 

 

6,306

 

Selling, general and administrative

 

6,607

 

 

 

6,449

 

Total operating expenses

 

14,316

 

 

 

12,755

 

 

 

 

 

Operating income

 

36,016

 

 

 

41,488

 

Other income/(expense), net

 

(393

)

 

 

(247

)

Income before provision for income taxes

 

35,623

 

 

 

41,241

 

Provision for income taxes

 

5,625

 

 

 

6,611

 

Net income

$

29,998

 

 

$

34,630

 

 

 

 

 

Earnings per share:

 

 

 

Basic

$

1.89

 

 

$

2.11

 

Diluted

$

1.88

 

 

$

2.10

 

Shares used in computing earnings per share:

 

 

 

Basic

 

15,892,723

 

 

 

16,391,724

 

Diluted

 

15,955,718

 

 

 

16,519,291

 

 

 

 

 

(1) Net sales by reportable segment:

 

 

 

Americas

$

49,278

 

 

$

51,496

 

Europe

 

27,681

 

 

 

29,749

 

Greater China

 

23,905

 

 

 

25,783

 

Japan

 

6,755

 

 

 

7,107

 

Rest of Asia Pacific

 

9,535

 

 

 

9,810

 

Total net sales

$

117,154

 

 

$

123,945

 

 

 

 

 

(1) Net sales by category:

 

 

 

iPhone

$

65,775

 

 

$

71,628

 

Mac

 

7,735

 

 

 

10,852

 

iPad

 

9,396

 

 

 

7,248

 

Wearables, Home and Accessories

 

13,482

 

 

 

14,701

 

Services

 

20,766

 

 

 

19,516

 

Total net sales

$

117,154

 

 

$

123,945

 

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares which are reflected in thousands and par value)

 

December 31, 
2022

 

September 24, 
2022

ASSETS:

Current assets:

 

 

 

Cash and cash equivalents

$

20,535

 

 

$

23,646

 

Marketable securities

 

30,820

 

 

 

24,658

 

Accounts receivable, net

 

23,752

 

 

 

28,184

 

Inventories

 

6,820

 

 

 

4,946

 

Vendor non-trade receivables

 

30,428

 

 

 

32,748

 

Other current assets

 

16,422

 

 

 

21,223

 

Total current assets

 

128,777

 

 

 

135,405

 

 

 

 

 

Non-current assets:

 

 

 

Marketable securities

 

114,095

 

 

 

120,805

 

Property, plant and equipment, net

 

42,951

 

 

 

42,117

 

Other non-current assets

 

60,924

 

 

 

54,428

 

Total non-current assets

 

217,970

 

 

 

217,350

 

Total assets

$

346,747

 

 

$

352,755

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

 

 

 

Accounts payable

$

57,918

 

 

$

64,115

 

Other current liabilities

 

59,893

 

 

 

60,845

 

Deferred revenue

 

7,992

 

 

 

7,912

 

Commercial paper

 

1,743

 

 

 

9,982

 

Term debt

 

9,740

 

 

 

11,128

 

Total current liabilities

 

137,286

 

 

 

153,982

 

 

 

 

 

Non-current liabilities:

 

 

 

Term debt

 

99,627

 

 

 

98,959

 

Other non-current liabilities

 

53,107

 

 

 

49,142

 

Total non-current liabilities

 

152,734

 

 

 

148,101

 

Total liabilities

 

290,020

 

 

 

302,083

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,842,407 and 15,943,425 shares issued and outstanding, respectively

 

66,399

 

 

 

64,849

 

Retained earnings/(Accumulated deficit)

 

3,240

 

 

 

(3,068

)

Accumulated other comprehensive income/(loss)

 

(12,912

)

 

 

(11,109

)

Total shareholders’ equity

 

56,727

 

 

 

50,672

 

Total liabilities and shareholders’ equity

$

346,747

 

 

$

352,755

 

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

 

Three Months Ended

 

December 31, 
2022

 

December 25, 
2021

Cash, cash equivalents and restricted cash, beginning balances

$

24,977

 

 

$

35,929

 

Operating activities:

 

 

 

Net income

 

29,998

 

 

 

34,630

 

Adjustments to reconcile net income to cash generated by operating activities:

 

 

 

Depreciation and amortization

 

2,916

 

 

 

2,697

 

Share-based compensation expense

 

2,905

 

 

 

2,265

 

Other

 

(317

)

 

 

849

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

4,275

 

 

 

(3,934

)

Inventories

 

(1,807

)

 

 

681

 

Vendor non-trade receivables

 

2,320

 

 

 

(9,812

)

Other current and non-current assets

 

(4,099

)

 

 

(4,921

)

Accounts payable

 

(6,075

)

 

 

19,813

 

Deferred revenue

 

131

 

 

 

462

 

Other current and non-current liabilities

 

3,758

 

 

 

4,236

 

Cash generated by operating activities

 

34,005

 

 

 

46,966

 

Investing activities:

 

 

 

Purchases of marketable securities

 

(5,153

)

 

 

(34,913

)

Proceeds from maturities of marketable securities

 

7,127

 

 

 

11,309

 

Proceeds from sales of marketable securities

 

509

 

 

 

10,675

 

Payments for acquisition of property, plant and equipment

 

(3,787

)

 

 

(2,803

)

Other

 

(141

)

 

 

(374

)

Cash used in investing activities

 

(1,445

)

 

 

(16,106

)

Financing activities:

 

 

 

Payments for taxes related to net share settlement of equity awards

 

(2,316

)

 

 

(2,888

)

Payments for dividends and dividend equivalents

 

(3,768

)

 

 

(3,732

)

Repurchases of common stock

 

(19,475

)

 

 

(20,478

)

Repayments of term debt

 

(1,401

)

 

 

—

 

Repayments of commercial paper, net

 

(8,214

)

 

 

(1,000

)

Other

 

(389

)

 

 

(61

)

Cash used in financing activities

 

(35,563

)

 

 

(28,159

)

Increase/(Decrease) in cash, cash equivalents and restricted cash

 

(3,003

)

 

 

2,701

 

Cash, cash equivalents and restricted cash, ending balances

$

21,974

 

 

$

38,630

 

Supplemental cash flow disclosure:

 

 

 

Cash paid for income taxes, net

$

828

 

 

$

5,235

 

Cash paid for interest

$

703

 

 

$

531

 

 
View source version on businesswire.com: https://www.businesswire.com/news/home/20230202005816/en/