Apple 1998 Annual Report Download - page 36

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CONSOLIDATED STATEMENTS OF OPERATIONS
(IN MILLIONS, EXCEPT SHARE AND PER SHARE AMOUNTS)
See accompanying notes to consolidated financial statements.
34
THREE FISCAL YEARS ENDED SEPTEMBER 25, 1998 1998 1997 1996
----------------------------------------------------------------------------- ---------- ---------- ----------
Net sales.................................................................... $ 5,941 $ 7,081 $ 9,833
Cost of sales................................................................ 4,462 5,713 8,865
---------- ---------- ----------
Gross margin............................................................... 1,479 1,368 968
---------- ---------- ----------
Operating expenses:
Research and development................................................... 303 485 604
Selling, general, and administrative....................................... 908 1,286 1,568
Special charges:
In-process research and development...................................... 7 375 --
Restructuring costs...................................................... -- 217 179
Termination of license agreement......................................... -- 75 --
---------- ---------- ----------
Total operating expenses............................................... 1,218 2,438 2,351
---------- ---------- ----------
Operating income (loss)...................................................... 261 (1,070) (1,383)
---------- ---------- ----------
Gains arising from equity investment......................................... 40 -- --
Interest and other income (expense), net..................................... 28 25 88
---------- ---------- ----------
Total interest and other income (expense), net............................. 68 25 88
---------- ---------- ----------
Income (loss) before provision (benefit) for income taxes.................... 329 (1,045) (1,295)
Provision (benefit) for income taxes......................................... 20 -- (479)
---------- ---------- ----------
Net income (loss)............................................................ $ 309 $ (1,045) $ (816)
---------- ---------- ----------
---------- ---------- ----------
Earnings (loss) per common share:
Basic...................................................................... $ 2.34 $ (8.29) $ (6.59)
Diluted.................................................................... $ 2.10 $ (8.29) $ (6.59)
Shares used in computing earnings (loss) per share (in thousands):
Basic...................................................................... 131,974 126,062 123,734
Diluted.................................................................... 167,917 126,062 123,734