Apple Reports Quarterly Loss of $53 Million

Apple Computer, taking a larger-than-expected $224-million write-off, reported its second-ever quarterly loss Wednesday as profit margins continued to deteriorate.

The Cupertino, Calif.-based company said it lost $53.1 million in the fiscal third quarter ended June 30, contrasted with a profit of $119.8 million in the same period a year ago. Revenue rose to $1.53 billion from $1.36 billion in last year’s third quarter but was down from the $1.6 billion in the second quarter.

Apple said in May that it would eliminate 1,500 jobs and take a charge to cover restructuring.

Bruce Lupatkin, an analyst with Hambrecht & Quist, said he was expecting a charge of about $45 million. He said the charge announced Wednesday seems far too large for the 10% work force reduction it is supposed to cover. “There are definitely more layoffs coming,” he predicted. Apple spokesman said layoff plans had not changed.

Steve Ossad of Montgomery Securities called the charge “gigantic” and added that revenue growth seemed to have leveled out. “I think it will be a while before they regain momentum,” he said.