Apple’s iPod Rings Up Strong Quarter

Apple Computer Inc. on Wednesday posted a strong fiscal first-quarter profit, fueled by robust sales of its iPod digital music player and reversing a year-earlier net loss.

Cupertino, Calif.-based Apple reported net income of $63 million, or 17 cents a share, contrasted with a year-earlier net loss of $8 million, or 2 cents a share, for the quarter ended Dec. 27. Last year’s first quarter included a restructuring charge and an accounting adjustment. Revenue rose 37% to a four-year high of $2.01 billion from $1.47 billion a year earlier.

Even though Apple’s results topped forecasts, its stock fell about 5% in after-hours trading amid what analysts said were apparently even rosier expectations and possible disappointment with results at other leading tech firms.

Shares of Apple had risen 10% since Chief Executive Steve Jobs unveiled the iPod mini on Jan. 6 and said the company had sold more than 730,000 iPods in the December quarter.

Apple also announced a deal last week for Hewlett-Packard Co. to resell an HP-branded version of the iPod and bundle Apple’s iTunes music software with its personal computers.

Apple is best known for its Mac computer, popular among graphics and creative professionals as an alternative to PCs that run on Microsoft Corp.’s Windows operating system.

Shares of Apple rose 8 cents to $24.20 on Nasdaq before results were released. The stock slipped to $22.85 in after-hours trading.

Chief Financial Officer Fred Anderson said earnings per share for the second quarter would be between 8 cents and 10 cents on revenue of about $1.8 billion.

That forecast is above the consensus per-share estimate of 7 cents, and above the revenue forecast of $1.71 billion, according to Reuters Research.

“The outlook, I think, is positive for the March quarter,” Anderson said.