Apple Computer Reports Net Income of $47 Million

Apple Computer Inc., helped by cost cutting and demand for its high-end Macintoshes, on Wednesday reported a $47-million quarterly profit, a welcome bit of black ink after nearly two years of the red variety.

The Cupertino, Calif.-based company surprised the Mac community and industry analysts when it predicted positive results last week. But analysts said it remains to be seen whether Apple can keep making money.

Apple’s profit for the three months ended Dec. 26, the company’s fiscal first quarter, amounted to diluted earnings of 33 cents a share. The company lost $120 million, or 96 cents a share, for the same period a year ago.

Revenue of $1.6 billion was sharply lower than the $2.1 billion of a year ago. But the revenue was roughly even with the previous quarter, apparently a sign of stabilization.

“The December quarter results reflect the benefits of the disciplined focus that Apple has undertaken in recent months,” interim Chief Executive Steve Jobs said in a statement.

Leading Internet directory service Yahoo Inc. said its fourth-quarter earnings beat expectations on strong advertising revenue before a charge resulted in a final loss. The Sunnyvale, Calif.-based company’s profit before a charge was $2.57 million, or 5 cents a share, contrasted with a loss of $666,000, or 2 cents a share, for the year-earlier period. Wall Street had expected the company to earn 3 cents a share, according to the average estimate of 13 analysts polled by IBES International Inc.

Yahoo had the best-performing U.S. stock last year, soaring 511%. Investors and analysts said they expect the company, which many regard as a bellwether of the Internet industry, to be one of the most successful in earning revenue from advertising and electronic commerce.

Including a charge of $3.85 million from the acquisition of Four11 Corp., the company reported a fourth-quarter loss of $1.28 million, or 3 cents a share.

Fannie Mae said its fourth-quarter earnings rose 12%, in line with expectations, as the company bought more home mortgages and as its credit losses plunged. The largest financier of U.S. home mortgages said its fourth-quarter earnings were $794 million, or 74 cents a diluted share, up from $712.1 million, or 65 cents, for the same period a year ago.

“They had a revival of portfolio growth, which is really the key story in the fourth quarter,” said Salomon Smith Barney Inc. analyst Thomas O’Donnell, who has a “buy” rating on the stock. “A year ago, many analysts were saying Fannie had seen its better days.”

Charles Schwab Corp. of San Francisco said fourth-quarter earnings rose 35%, led by a gain in commissions revenue as market turmoil worldwide caused a surge in trading. Profit from operations, excluding a charge of $17.5 million to settle a lawsuit, was $80.6 million, or 29 cents a diluted share, up from $59.7 million, or 22 cents, for the fourth quarter last year. Net income for the company, the U.S.’ largest discount brokerage, rose 6% to $63.1 million, or 23 cents a share. Profit from operations fell within the range of 27 cents to 29 cents forecast by eight analysts surveyed by IBES International.