Apple Inc. (AAPL)
Q4 2009 Earnings Call Transcript
October 19, 2009 5:00 p.m. ET
Executives
Nancy Paxton - Senior Director, Investor Relations
Peter Oppenheimer - Vice President of Finance and Chief Finance Officer
Tim Cook- Chief Operating Officer
Gary Wipfler - Treasurer
Analysts
Richard Gardner - Citigroup
Ben Reitzes - Barclays Capital
Gene Munster - Piper Jaffray
Scott Craig - Banc of America
Mike Abramsky - RBC Capital Markets
Shannon Cross - Cross Research
Bill Shope - Credit Suisse
David Bailey - Goldman Sachs
Mark Moskowitz - JPMorgan
Toni Sacconaghi - Sanford Bernstein
Maynard Um - UBS
Chris Whitmore - Deutsche Bank
Shaw Wu - Kaufman Brothers
Brian Marshall - Broadpoint AmTech
Bill Fearnley - FTN Equity Capital
Presentation
Operator
Good day, ladies and gentlemen, and welcome to the Apple, Inc. fourth quarter 2009 fiscal earnings conference call. Today''s call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Ms. Nancy Paxton, Senior Director of Investor Relations. Please go ahead, ma''am.
Nancy Paxton
Thank you. Good afternoon. Thank you for joining us. Speaking today is Apple''s CFO, Peter Oppenheimer and he''ll be joined by Apple''s COO Tim Cook, and Treasurer, Gary Wipfler for the Q&A session with analysts.
Please note that some of the information you''ll hear during our discussion today will consist of forward-looking statements including, without limitation those regarding revenue, gross margin, operating expenses, other income and expense, stock-based compensation expense, taxes, earnings per share, and future products. Actual results or trends could differ materially from our forecast.
For more information, please refer to the risk factors discussed in the Apple''s Form 10-K for 2008, the Form 10-Q for the first three fiscal quarters of 2009, and the Form 8-K filed with the SEC today and the attached press release. Apple assumes no obligation to update any forward-looking statements or information, which speak as of their respective date.
With that, I would like to turn the call over to Peter Oppenheimer for introductory remarks.
Peter Oppenheimer
Thank you, Nancy. Thank you for joining us. We''re extremely pleased to report Apple''s most profitable quarter ever and sales of more Macs and iPhones than in any previous quarter. We are thrilled with these record breaking results, particularly given the economic environment around us.
Revenue for the quarter was $9.87 billion, representing 25% growth over the prior September quarter''s results. This was Apple''s second highest quarterly revenue ever, next to the record results reported for last December quarter.
Operating margin was Apple''s highest ever at $2.19 billion, representing over 22% of revenue and higher than our guidance, due to better than expected revenue and gross margin. Net income was $1.67 billion, which translated to earnings per share of $1.82.
In terms of non-GAAP measures, adjusted sales totaled $12.25 billion for the September quarter, which was almost $2.4 billion higher than our reported revenue. Adjusted gross margin was $5.21 billion, which was almost $1.6 billion higher than our reported gross margin. And adjusted net income was $2.85 billion, or almost $1.2 billion higher than our reported net income.
We believe that these non-GAAP financial measures provided added transparency to our business and hope they are helpful to you in your analysis and understanding of our performance in the September quarter.
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