Apple has announced its financial results for the first quarter of fiscal year 2011. The company would appear to be way over consensus estimates, as it has posted yet another record quarter. 

From the press release (we’ll be covering the call live, which is scheduled to begin at 5pm Eastern):

Apple® today announced financial results for its fiscal 2011 first quarter ended December 25, 2010. The Company posted record revenue of $26.74 billion and record net quarterly profit of $6 billion, or $6.43 per diluted share. These results compare to revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share, in the year-ago quarter. Gross margin was 38.5 percent compared to 40.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The Company sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Apple sold 19.45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. The Company also sold 7.33 million iPads during the quarter.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Steve Jobs, Apple’s CEO. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”

 

 

 

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share amounts which are reflected in thousands and per share amounts)

 
  Three Months Ended
 

December 25, 2010

 

December 26, 2009

           
Net sales $ 26,741   $ 15,683
Cost of sales (1)   16,443     9,272
           
Gross margin   10,298     6,411
           
Operating expenses:          
Research and development (1)   575     398
Selling, general and administrative (1)   1,896     1,288
           
Total operating expenses   2,471     1,686
           
Operating income   7,827     4,725
           
Other income and expense   136     33
           
Income before provision for income taxes   7,963     4,758
           
Provision for income taxes   1,959     1,380
           
Net income $ 6,004   $ 3,378
           
Earnings per common share:          
Basic $ 6.53   $ 3.74
Diluted $ 6.43   $ 3.67
           
Shares used in computing earnings per share:          
Basic   919,294     903,542
Diluted   933,154     919,783
           
(1) Includes stock-based compensation expense as follows:          
Cost of sales $ 52   $ 37
Research and development $ 113   $ 74
Selling, general and administrative $ 134   $ 94
           
Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share amounts)

 
  December 25, 2010   September 25, 2010
           
ASSETS:
           
Current assets:          
Cash and cash equivalents $ 10,734   $ 11,261  
Short-term marketable securities   16,243     14,359  
Accounts receivable, less allowances of $62 and $55, respectively   6,027     5,510  
Inventories   885     1,051  
Deferred tax assets   1,724     1,636  
Vendor non-trade receivables   4,847     4,414  
Other current assets   3,467     3,447  
Total current assets   43,927     41,678  
           
Long-term marketable securities   32,730     25,391  
Property, plant and equipment, net   5,868     4,768  
Goodwill   741     741  
Acquired intangible assets, net   522     342  
Other assets   2,954     2,263  
Total assets $ 86,742   $ 75,183  
           
           
LIABILITIES AND SHAREHOLDERS’ EQUITY:
           
Current liabilities:          
Accounts payable $ 14,301   $ 12,015  
Accrued expenses   5,953     5,723  
Deferred revenue   3,541     2,984  
Total current liabilities   23,795     20,722  
           
Deferred revenue – non-current   1,216     1,139  
Other non-current liabilities   7,065     5,531  
Total liabilities   32,076     27,392  
           
Commitments and contingencies          
           
Shareholders’ equity:          

Common stock, no par value; 1,800,000,000 shares authorized;
921,035,475 and 915,970,050 shares issued and outstanding, respectively

 

 

11,502

    10,668  
Retained earnings   43,050     37,169  
Accumulated other comprehensive income/(loss)   114     (46 )
Total shareholders’ equity   54,666     47,791  
           
Total liabilities and shareholders’ equity $ 86,742   $ 75,183  
             
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

 
  Three Months Ended
 

December 25, 2010

 

December 26, 2009

           
Cash and cash equivalents, beginning of the period $ 11,261     $ 5,263  
           
Operating activities:          
Net income   6,004       3,378  
Adjustments to reconcile net income to cash generated by operating activities:          
Depreciation, amortization and accretion   356       209  
Stock-based compensation expense   299       205  
Deferred income tax expense   823       425  
           
Changes in operating assets and liabilities:          
Accounts receivable, net   (517 )     271  
Inventories   166       (121 )
Vendor non-trade receivables   (433 )     (95 )
Other current and non-current assets   (558 )     (369 )
Accounts payable   2,346       956  
Deferred revenue   634       606  
Other current and non-current liabilities   653       316  
           
Cash generated by operating activities   9,773       5,781  
           
Investing activities:          
Purchases of marketable securities   (19,575 )     (12,922 )
Proceeds from maturities of marketable securities   3,279       6,216  
Proceeds from sales of marketable securities   6,853       3,199  
Payments for acquisition of property, plant and equipment   (1,214 )     (376 )
Payments for acquisition of intangible assets   (49 )     (5 )
Other   (23 )     (70 )
           
Cash used in investing activities   (10,729 )     (3,958 )
           
Financing activities:          
Proceeds from issuance of common stock   208       374  
Excess tax benefits from stock-based compensation   454       252  
Taxes paid related to net share settlement of equity awards   (233 )     (103 )
           
Cash generated by financing activities   429       523  
           
(Decrease)/increase in cash and cash equivalents   (527 )     2,346  
           
Cash and cash equivalents, end of the period $ 10,734     $ 7,609  
           
Supplemental cash flow disclosure:          
Cash paid for income taxes, net $ 826     $ 980  
           
Apple Inc.
Q1 2011 Unaudited Summary Data
     
                                             
        Q4 2010   Q1 2010   Q1 2011                
                                Sequential Change   Year/Year Change
Operating Segments  

CPU

Units K

 

Revenue

$M

 

CPU

Units K

 

Revenue

$M

 

CPU

Units K

 

Revenue

$M

  CPU Units   Revenue   CPU Units   Revenue
    Americas   1,460   $ 7,186   1,187   $ 6,092   1,360   $ 9,218   – 7 %   28 %   15 %   51 %
    Europe   978     5,458   1,068     5,024   1,245     7,256   27 %   33 %   17 %   44 %
    Japan   118     1,401   105     783   162     1,433   37 %   2 %   54 %   83 %
    Asia Pacific   455     2,732   313     1,813   516     4,987   13 %   83 %   65 %   175 %
    Retail   874     3,566   689     1,971   851     3,847   – 3 %   8 %   24 %   95 %
Total Operating Segments   3,885   $ 20,343   3,362   $ 15,683   4,134   $ 26,741   6 %   31 %   23 %   71 %
                                             
                                             
                                Sequential Change   Year/Year Change
Product Summary  

Units K

 

Revenue

$M

 

Units K

 

Revenue

$M

  Units K  

Revenue

$M

  Units   Revenue   Units   Revenue
    Desktops (1)   1,242   $ 1,676   1,234   $ 1,692   1,227   $ 1,731   – 1 %   3 %   – 1 %   2 %
    Portables (2)   2,643     3,194   2,128     2,758   2,907     3,699   10 %   16 %   37 %   34 %
Subtotal CPUs   3,885     4,870   3,362     4,450   4,134     5,430   6 %   11 %   23 %   22 %
    iPod   9,051     1,477   20,970     3,391   19,446     3,425   115 %   132 %   – 7 %   1 %
    Other Music Related Products and Services (3)         1,243         1,164         1,431       15 %       23 %
    iPhone and Related Products and Services (4)   14,102     8,822   8,737     5,578   16,235     10,468   15 %   19 %   86 %   88 %
    iPad and Related Products and Services (5)   4,188     2,792   0     0   7,331     4,608   75 %   65 %   N/M     N/M  
    Peripherals and Other Hardware         477         469         593       24 %       26 %
    Software, Service and Other Sales         662         631         786       19 %       25 %
Total Apple       $ 20,343       $ 15,683       $ 26,741       31 %       71 %
                                             
(1)   Includes iMac, Mac mini, Mac Pro and Xserve product lines.
(2)   Includes MacBook, MacBook Air and MacBook Pro product lines.
(3)   Includes iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories.
(4)   Includes recognized revenue from iPhone sales, carrier agreements, services, and Apple-branded and third-party iPhone accessories.
(5)   Includes recognized revenue from iPad sales, services, and Apple-branded and third-party iPad accessories.
                                             
N/M: Not Meaningful K = Units in thousands $M = Amounts in millions

 

Stay tuned for liveblog of earnings call.