Apple Computer, Tandy Post Big Increases in Net Income
For the second straight quarter, Apple Computer showed a healthy profit increase on lower sales. The Cupertino, Calif., computer maker, which has undergone a major reorganization in the last year, said earnings rose 218% to $31.8 million in the quarter ended March 28.
The performance matched predictions made by the company last month and “meets our expectations,” said John Sculley, chairman and chief executive. Sales in the quarter fell 6% to $408.9 million.
The figures reflect continuing improvement in the company’s gross margins to the highest level in company history, Apple said. Its stock rose 87 1/2 cents to $28.25 in active over-the-counter trading Wednesday.
Profit at Tandy Corp., maker of computers and consumer electronics, rose 92% to $42 million in its third quarter ended March 31. Sales were $766.8 million, a 13% increase.
The sales increase makes Tandy, based in Fort Worth, a standout so far in this reporting period for computer makers, many of whom are expected to report declining sales--as Apple did--or only moderate rises--such as IBM’s 3.6% boost.
Tandy’s stock closed at $38.62 1/2, up 37 1/2 cents, in New York Stock Exchange composite trading.
Tandy, which sells its products through its Radio Shack retail stores, did not indicate how much of the most recent quarter’s sales gain was attributable to computer products.