Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, July 17, 1993 TAG: 9307170033
SECTION: BUSINESS PAGE: A12 EDITION: METRO
SOURCE: Associated Press
DATELINE: SAN JOSE, CALIF. LENGTH: Medium
Nearly 19 million shares changed hands, more than six times the average daily volume, as investors showed deepening concern about Apple's short-term earnings and long-term ability to compete in a changing computer industry.
Apple shares were down $8.25 at $27.50, a 23 percent decline, in over-the-counter trading Friday.
Analysts predicted more troubles ahead for the nation's No. 2 personal computer maker.
"The stock is not attractive unless it's below, say, $20," said Marianne Wolk of Prudential Securities Research in New York.
The company on Thursday reported a $188.3 million loss, or $1.63 per share, for the third fiscal quarter that ended June 25, including a $321 million pretax accounting charge to pay for the layoffs of 2,500 employees.
Even without the charge, Apple's performance was well below the expectations of observers and market analysts.
Revenue was $1.86 billion, up 7 percent from $1.74 billion a year ago. A year earlier, Apple earned $131.7 million, or $1.07 per share.
It was the worst quarterly loss in Apple's history. It lost $17 million in the April-June 1985 quarter and $53.1 million in the April-June 1991 quarter.
Apple was founded in a Silicon Valley garage in 1976 by Steve Jobs and Steve Wozniak, and went public four years later. Its most recent layoffs were in 1991, when 1,500 workers were let go.
In the past two weeks, Apple has handed out 2,100 pink slips to 500 overseas employees, 1,100 in the Silicon Valley area and another 500 elsewhere in the United States. It now employs about 13,900 workers, down from 16,000 last month.
The layoffs were announced earlier this month, shortly after Michael Spindler was named by the Apple board to replace John Sculley as chief executive. Sculley, now in charge of strategic alliances, remains Apple chairman.
Apple also announced a broad organizational restructuring to streamline operations.
Apple has cut prices three times in the past three months, including a 34 percent reduction on some machines Monday.
by CNB