January 31, 2001 5:40 PM PST

Apple expects to be profitable this quarter

Looking to rebound from a massive $247 million loss last quarter, Apple Computer Chief Financial Officer Fred Anderson told analysts that the company is on track to reach its goal of a slight profit in the March quarter.

"I really think we?re positioned for returning this company to profitability in the March quarter," Anderson said in a presentation Wednesday at the company's financial analyst meeting at company headquarters in Cupertino, Calif.

Anderson said the company is looking to cut costs but not jobs.

"We are not planning an across-the-board layoff," Anderson said. "We don't want to mortgage the future."

Anderson said the company expects to grow sales and earnings each quarter through the end of its fiscal year.

Apple Senior Vice President Tim Cook said the company should also benefit from lower component costs in the current quarter and next quarter.

"We see memory continuing to be in surplus," Cook said. "The price continues to be under pressure."

In many cases, memory makers will be selling below their manufacturing costs, Cook said.

Even components such as capacitors, which had been very tight amid strong cell phone demand, have come into balance as demand for both cell phones and PCs has moderated, Cook said.

The price of flat-screen monitors also continues to drop, although Cook said there is a limit to how far prices will fall. As the price gets closer to those of traditional CRT monitors, demand will pick up significantly, he said.

 

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