Earnings: Apple Provides More Details About FY1Q06; Music Contributed 59 Percent,

Work in progress. Apple Chairman and CEO Steve Jobs pre-released some earnings numbers during his keynote at Macworld Expo. Now we get the details. Apple’s FY1Q06 net profit nearly doubled over FY1Q05: $565 million or 68 cents per share, up from $295 million or 35 cents per share, the previous year. (This past quarter included the week between Christmas and New Years, an extra week that pumped up the numbers compared to the 13-week 1Q04.)

The music business (including iPods and iTunes) generated $3.4 billion or 59 percent of Apple’s total revenue for the quarter and was up 145 percent over the the year-ago quarter; the Mac side contributed 41 percent. Breaking down the music side
– the sale of 14 million-plus iPods: $2.9 billion. The number of units sold was up 118 percent over the previous quarter and 207 percent year over year; revnue rose 140 percent. (More than 35,000 outlets sell at least one model iPod.)

– Other music related products — iTunes Music Store, iPod services, and accessories (Apple and third party): $491 million. That’s an increase of 85 percent over the previous quarter and 177 percent year over year.

CFO Peter Oppenheimer called it “a landmark quarter” for the iTunes music store with the addition of television but didn’t update the 8 million-plus video download stat Jobs used at Macworld. The music store averaged the equivalent of 3 million downloads a day during the quarter, bolstered by sales of gift certificates.
But Apple also admitted it would be unlikely if last quarter’s record numbers could be surpassed or even sustained. Oppenheimer: “The iPod was one of the top holiday gifts this season. It’s natural to think there would be a decrease in the March quarter from this exceptional holiday result, which again included a 14th week.” As we’ve already seen with Yahoo, the Street doesn’t react kindly to lower expectations even when the predictions are substantially better than the same quarter last year. Apple shares dipped in afterhours trading; then again, the company got a boost last week after the Macworld keynote.
Earnings release | Earnings Webcast (archived)
mp3logo1.gif You can download the audio of the conference call here. (52 min., 9.2 Megs)

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