iPod sales drive Apple's earnings

" Building on continued momentum of its iPod players, Apple Computer nearly doubled its net income on record revenue and easily topped Wall Street expectations.

But a soft forecast for the coming quarter drove Apple's shares down more than 4 per cent in extended trading today.

For the second fiscal quarter, Apple said it expects revenue of about $US4.3 billion ($A5.76 billion) and earnings per share of 38 cents, including an estimated non-cash share-based compensation expense of 4 cents a share.

Analysts were expecting earnings of 48 cents a share on revenue of $4.6 billion.

However, Apple executives were ebullient Wednesday in their comments about the last quarter.

"We are thrilled to report the best quarter in Apple's history," said Steve Jobs, Apple's chief executive. "We are working on more wonderful products for 2006, and I can't wait to see what our customers think of them."

For the three months ended Decemeber 31, the maker of Macintosh computers and iPods said Wednesday it earned $US565 million ($A756.56 million) , or 65 cents per share, up from $295 million, or 35 cents a share in the year-ago quarter.

Apple revenues soared to $US5.75 billion ($A7.7 billion) up from $3.49 billion a year ago.

Analysts on average expected earnings of 61 cents per share on sales of $5.47 billion, according to a Thomson Financial poll. The forecast included a non-cash, share-based compensation expense of 3 cents per share ..."

http://www.smh.com.au/news/breaking/ipod-sales-drive-apples-earnings/2006/01/19/1137553688037.html