As filed with the Securities and Exchange Commission on April 10, 1997
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: March 14, 1997
APPLE COMPUTER, INC.
(Exact Name of Registrant as Specified in its Charter)
CALIFORNIA
(State or Other Jurisdiction of Incorporation)
0-10030 94-2404110
(Commission File Number) (I.R.S. Employer
Identification Number)
1 INFINITE LOOP, CUPERTINO, CALIFORNIA 95014
(Address of Principal Executive Offices) (Zip Code)
(408) 996-1010
(Registrant's Telephone Number, Including Area Code)
The Index to Exhibits appears on page 4.
<PAGE> 1
INFORMATION INCLUDED IN THIS REPORT
ITEMS 1 THROUGH 4, 6 AND 8 NOT APPLICABLE.
ITEM 5. OTHER EVENTS.
(i) Reference is made to the press release issued to the
public by the Registrant on March 14, 1997, the text of which is attached
hereto as Exhibit 99.1, for a description of the events reported pursuant
to this Form 8-K.
(ii) Reference is made to the press release issued to the
public by the Registrant on March 14, 1997, the text of which is attached
hereto as Exhibit 99.2, for a description of the events reported pursuant
to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements of Businesses Acquired.
NOT APPLICABLE.
(b) Pro Forma Financial Information.
NOT APPLICABLE.
(c) Exhibits.
99.1 Text of press release dated March 14, 1997.
99.2 Text of press release dated March 14, 1997.
<PAGE> 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
APPLE COMPUTER, INC.
DATE: April 10, 1997 By: /s/Fred D. Anderson
Name: Fred D. Anderson
Title: Executive Vice President
and Chief Financial Officer
<PAGE> 3
INDEX TO EXHIBITS
Exhibit Description Page
99.1 Text of press release dated March 14, 1997
99.2 Text of press release dated March 14, 1997
<PAGE> 4
[Exhibit 99.1]
For Immediate Release
Apple Computer Details Restructuring Plans
Company Paves Return Road to Leadership With
Focus on Its Distinctive Product Strengths
CUPERTINO, Calif. March 14, 1997 Apple
Computer, Inc. Chairman and CEO Gilbert F. Amelio
today detailed a restructuring plan that sharpens
the Company's focus on strengths that have been at
the heart of its success exceptionally easy-to-use
personal and mobile computers with unique
multimedia and Internet capabilities.
The top priorities guiding our reorganization are
the rapid delivery of distinctive products for our
loyal business, education, and home customers, and
the development of a robust next-generation
operating system to carry them into the future,
Amelio said. We can best achieve these goals by
streamlining our organization, simplifying our
product lines to deliver fewer but much stronger
models, and stopping investments in activities that
are not central to these core businesses.
Apple began the reorganization last month with a
new streamlined organization that focuses research
and development efforts on products that are
central to its key businesses, unifies Apple's
multiple marketing groups, aligns the Company's
sales teams to its market strengths, and fully
integrates Apple's and NeXT's resources. This
simpler organization has two charters: first, to bring
distinctive products to market quickly and to
market them aggressively to customers in Apple's
key markets, and second, to deliver the Company's
next-generation operating system, code-named
Rhapsody, while continuing to enhance the Mac(R)
OS.
<PAGE> 5
The Company simultaneously accelerated moves to
simplify its product line and deliver fewer, but
more competitive models, such as the recently
announced high-end Power Macintosh(R) and
Power Book(R) 3400 computers and the new entry-
level products, scheduled to be announced in April.
The Company has also re-evaluated the funding of
certain activities and technologies that are not
central to Apple's core business strategy, or that
can be better achieved through industry standards,
or that represent a strong business opportunity for
developers.
The resulting restructuring includes the lay-off of
approximately 2,700 Apple employees with
notifications scheduled to begin later this month,
and an estimated $155 million increase to the
Company's restructuring reserves to be charged to
the Company's second fiscal quarter earnings. The
majority of the total restructuring cost is
attributable to the workforce reduction, and the
remainder to the cancellation of contracts and
leases and to asset writeoffs.
While re-evaluating the funding of certain activities
and technologies, the Company reiterated its
commitment to deliver Rhapsody in 1998, and to
continue to enhance the Mac OS. Technologies that
will be maintained as part of the Mac OS but will
receive reduced investments for future upgrades
include Open Doc(R) component software technology,
Cyberdog(R), Open Transport(R), Game Sprockets, and
Mac OS Development Tools. Some other technologies
that are not part of the Mac OS, such as the speech
technologies, will be maintained without further
major upgrades planned.
Other activities and technologies that Apple will not
continue to fund include the Video Conferencing
Solution and AIX Server Software. Apple is also
exploring a wide range of options for still other
technologies and activities, including discussions
with prospective licensees and business partners.
<PAGE> 6
As part of its renewed focus, the Company also said
that it is altering the delivery schedule for Mac OS
releases beyond Mac OS 8, scheduled for
introduction in July 1997. Instead of two full retail
releases of Mac OS in 1998, as previously
announced, Apple plans to ship one complete
release in mid-1998 (Allegro), and a full release
yearly from then on. Between the full releases, the
latest system improvements will be made readily
available through updates; Apple plans to ship two
system updates between Mac OS 8 and Allegro. The
change makes more resources available for work on
the next-generation operating system and directly
answers customers' cost and logistics concerns for
frequent major releases.
With this restructuring, and the painful decisions
that have come with it, we are addressing the
problem of resource fragmentation and the
resulting weakness, Amelio continued. We will
limit our focus and put significant muscle behind
targeted efforts in order to successfully develop
and market winning solutions that have made
Macintosh customers some of the most passionate
and loyal in the industry. We fully intend to keep
that spirit alive.
Apple Computer, Inc., a recognized innovator in the
information industry and leader in multimedia
technologies, creates powerful solutions based on
easy-to-use personal computers, servers,
peripherals, software, information appliances, and
Internet technologies. Headquartered in Cupertino,
Calif., Apple develops, manufactures, licenses, and
markets solutions, products, technologies, and
services in the areas of business, education, home
use, entertainment, scientific, engineering, and
government for customers in more than 140
countries.
Press Contacts:
Katie Cotton
Apple Computer, Inc.
(408) 974-7269
email: [email protected]
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Russell Brady
Apple Computer, Inc.
(408) 974-6877
email: [email protected]
Investors Relations
Nancy Paxton
Apple Computer, Inc.
(408) 974-5420
email: [email protected]
NOTE TO EDITORS: To access Apple press releases,
background material, and contact information on
the web, visit The Source at:
http://www.apple.com/source/. If you are
interested in receiving Apple press releases by fax,
call 1-800-AAPL-FAX (1-800-227-5329) and enter
your PIN number. If you do not have a PIN
number, contact Apple's Media Helpline at
(408)974-2042 to request one. If you would like to
receive Apple press releases by email, please send
an email message to [email protected].
In the subject field, type the text subscribe [your
full name].
<PAGE> 8
[Exhibit 99.2]
For Immediate Release
Apple Discusses Q2 Revenue Outlook
CUPERTINO, Calif. March 14, 1997 In a conference
call with financial analysts today, Apple Computer,
Inc. executive vice president and chief financial
officer Fred Anderson indicated that the Company
expects revenues for its second fiscal quarter
ending March 28, 1997 to be between $1.6 and $1.7
billion dollars.
As we've previously discussed, said Anderson we
exited the first quarter with surplus channel
inventory. We've been extremely pleased with the
results of channel sell through of that inventory
this quarter, particularly in the Americas. However,
this surplus channel sell-off has been off-set by
reduced sell-in during the quarter to restore a more
normalized channel inventory level. This
phenomenon coupled with the traditional seasonal
softness of demand in our second quarter suggests
that we will generate lower revenues than those we
achieved in our first fiscal quarter, Anderson
stated.
Apple expects to release the results of its second
fiscal quarter in mid-April.
Apple Computer, Inc., a recognized innovator in the
information industry and leader in multimedia
technologies, creates powerful solutions based on
easy-to-use personal computers, servers,
peripherals, software, handheld computers and
Internet content. Headquartered in Cupertino,
California, Apple develops, manufactures, licenses
and markets solutions, products, technologies and
services for business, education, consumer,
entertainment, scientific and engineering and
government customers in more than 140 countries.
<PAGE> 9
Press Contacts:
Investor Relations
Nancy Paxton
Apple Computer, Inc.
(408) 974-5420
email: [email protected]
Katie Cotton
Apple Computer, Inc.
(408) 974-7269
email: [email protected]
NOTE TO EDITORS: To access Apple press releases,
background material, and contact information on
the web, visit The Source at:
http://www.apple.com/source/. If you are
interested in receiving Apple press releases by fax,
call 1-800-AAPL-FAX (1-800-227-5329) and enter
your PIN number. If you do not have a PIN
number, contact Apple's Media Helpline at
(408)974-2042 to request one. If you would like to
receive Apple press releases by email, please send
an email message to [email protected].
In the subject field, type the text subscribe [your
full name].
Apple, the Apple logo, Macintosh, Performa, Power
Macintosh, and PowerBook are registered
trademarks of Apple Computer, Inc. Additional
company and product names may be trademarks or
registered trademarks of the individual companies
and are respectfully acknowledged.
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