The Klein Law Firm Reminds Investors of Class Actions on Behalf of Shareholders of FB, CELH and VLTA

Katie R. Ochoa

Apple® today announced financial results for its fiscal 2022 second quarter ended March 26, 2022. The Company posted a March quarter revenue record of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52.

“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” said Tim Cook, Apple’s CEO. “We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind.”

“We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter.”

Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock, an increase of 5 percent. The dividend is payable on May 12, 2022 to shareholders of record as of the close of business on May 9, 2022. The board of directors has also authorized an increase of $90 billion to the existing share repurchase program.

Apple will provide live streaming of its Q2 2022 financial results conference call beginning at 2:00 p.m. PT on April 28, 2022 at apple.com/investor/earnings-call . This webcast will be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com , and its investor relations website, investor.apple.com . This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the Company’s plans for return of capital, the payment of its quarterly dividend, and its investment plans and environmental initiatives. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: the effect of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on the Company’s business, including effects on purchasing decisions by consumers and businesses; the ability of the Company to compete in markets that are highly competitive and subject to rapid technological change; the ability of the Company to manage frequent introductions and transitions of products and services, including delivering to the marketplace, and stimulating customer demand for, new products, services, and technological innovations on a timely basis; the effect that shifts in the mix of products and services and in the geographic, currency, or channel mix, component cost increases, increases in the cost of developing, acquiring and delivering content for the Company’s services, price competition, or the introduction of new products or services, including new products or services with higher cost structures, could have on the Company’s gross margin; the dependency of the Company on the performance of distributors of the Company’s products, including cellular network carriers and other resellers; the risk of write-downs on the value of inventory and other assets and purchase commitment cancellation risk; the continued availability on acceptable terms, or at all, of certain components, services, and new technologies essential to the Company’s business, including components and technologies that may only be available from single or limited sources; the dependency of the Company on manufacturing and logistics services provided by third parties, many of which are located outside of the US and which may affect the quality, quantity, or cost of products manufactured or services rendered to the Company; the effect of product and services design and manufacturing defects on the Company’s financial performance and reputation; failure to obtain or create digital content that appeals to the Company’s customers, or to make such content available on commercially reasonable terms; the dependency of the Company on third-party intellectual property, which may not be available to the Company on commercially reasonable terms or at all; the dependency of the Company on support from third-party software developers to develop and maintain software applications and services for the Company’s products; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations worldwide, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company’s business; the intense media, political, and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions, and penalties; the ability of the Company to manage risks associated with the Company’s retail stores; the ability of the Company to manage risks associated with the Company’s investments in new business strategies and acquisitions; the impact on the Company’s business and reputation from information technology system failures, network disruptions, or losses or unauthorized access to, or release of, confidential information; the ability of the Company to comply with laws and regulations regarding data protection; the continued service and availability of highly skilled employees, including key personnel; political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s products; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of the Company’s investment portfolio; and changes in tax rates, the adoption of new US or international tax legislation, and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

NOTE TO EDITORS: For additional information visit Apple Newsroom ( www.apple.com/newsroom ), or call Apple’s Media Helpline at (408) 974-2042.

© 2022 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares which are reflected in thousands and per share amounts)

Three Months Ended

Six Months Ended

March 26,
2022

March 27,
2021

March 26,
2022

March 27,
2021

Net sales:

Products

$

77,457

$

72,683

$

181,886

$

168,361

Services

19,821

16,901

39,337

32,662

Total net sales (1)

97,278

89,584

221,223

201,023

Cost of sales:

Products

49,290

46,447

113,599

108,577

Services

5,429

5,058

10,822

10,039

Total cost of sales

54,719

51,505

124,421

118,616

Gross margin

42,559

38,079

96,802

82,407

Operating expenses:

Research and development

6,387

5,262

12,693

10,425

Selling, general and administrative

6,193

5,314

12,642

10,945

Total operating expenses

12,580

10,576

25,335

21,370

Operating income

29,979

27,503

71,467

61,037

Other income/(expense), net

160

508

(87

)

553

Income before provision for income taxes

30,139

28,011

71,380

61,590

Provision for income taxes

5,129

4,381

11,740

9,205

Net income

$

25,010

$

23,630

$

59,640

$

52,385

Earnings per share:

Basic

$

1.54

$

1.41

$

3.65

$

3.11

Diluted

$

1.52

$

1.40

$

3.62

$

3.08

Shares used in computing earnings per share:

Basic

16,278,802

16,753,476

16,335,263

16,844,298

Diluted

16,403,316

16,929,157

16,461,304

17,021,423

(1) Net sales by reportable segment:

Americas

$

40,882

$

34,306

$

92,378

$

80,616

Europe

23,287

22,264

53,036

49,570

Greater China

18,343

17,728

44,126

39,041

Japan

7,724

7,742

14,831

16,027

Rest of Asia Pacific

7,042

7,544

16,852

15,769

Total net sales

$

97,278

$

89,584

$

221,223

$

201,023

(1) Net sales by category:

iPhone

$

50,570

$

47,938

$

122,198

$

113,535

Mac

10,435

9,102

21,287

17,777

iPad

7,646

7,807

14,894

16,242

Wearables, Home and Accessories

8,806

7,836

23,507

20,807

Services

19,821

16,901

39,337

32,662

Total net sales

$

97,278

$

89,584

$

221,223

$

201,023

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares which are reflected in thousands and par value)

March 26,
2022

September 25,
2021

ASSETS:

Current assets:

Cash and cash equivalents

$

28,098

$

34,940

Marketable securities

23,413

27,699

Accounts receivable, net

20,815

26,278

Inventories

5,460

6,580

Vendor non-trade receivables

24,585

25,228

Other current assets

15,809

14,111

Total current assets

118,180

134,836

Non-current assets:

Marketable securities

141,219

127,877

Property, plant and equipment, net

39,304

39,440

Other non-current assets

51,959

48,849

Total non-current assets

232,482

216,166

Total assets

$

350,662

$

351,002

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

Accounts payable

$

52,682

$

54,763

Other current liabilities

50,248

47,493

Deferred revenue

7,920

7,612

Commercial paper

6,999

6,000

Term debt

9,659

9,613

Total current liabilities

127,508

125,481

Non-current liabilities:

Term debt

103,323

109,106

Other non-current liabilities

52,432

53,325

Total non-current liabilities

155,755

162,431

Total liabilities

283,263

287,912

Commitments and contingencies

Shareholders’ equity:

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,207,568 and 16,426,786 shares issued and outstanding, respectively

61,181

57,365

Retained earnings

12,712

5,562

Accumulated other comprehensive income/(loss)

(6,494

)

163

Total shareholders’ equity

67,399

63,090

Total liabilities and shareholders’ equity

$

350,662

$

351,002

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Six Months Ended

March 26,
2022

March 27,
2021

Cash, cash equivalents and restricted cash, beginning balances

$

35,929

$

39,789

Operating activities:

Net income

59,640

52,385

Adjustments to reconcile net income to cash generated by operating activities:

Depreciation and amortization

5,434

5,463

Share-based compensation expense

4,517

4,001

Deferred income tax expense/(benefit)

1,088

(207

)

Other

(20

)

(474

)

Changes in operating assets and liabilities:

Accounts receivable, net

5,542

(2,347

)

Inventories

1,065

(1,226

)

Vendor non-trade receivables

643

6,792

Other current and non-current assets

(3,542

)

(4,333

)

Accounts payable

(1,750

)

(1,997

)

Deferred revenue

627

1,642

Other current and non-current liabilities

1,888

3,045

Cash generated by operating activities

75,132

62,744

Investing activities:

Purchases of marketable securities

(61,987

)

(74,424

)

Proceeds from maturities of marketable securities

18,000

39,605

Proceeds from sales of marketable securities

24,668

21,645

Payments for acquisition of property, plant and equipment

(5,317

)

(5,769

)

Payments made in connection with business acquisitions, net

(167

)

(9

)

Other

(568

)

Cash used in investing activities

(25,371

)

(18,952

)

Financing activities:

Payments for taxes related to net share settlement of equity awards

(3,218

)

(3,160

)

Payments for dividends and dividend equivalents

(7,327

)

(7,060

)

Repurchases of common stock

(43,109

)

(43,323

)

Proceeds from issuance of term debt, net

13,923

Repayments of term debt

(3,750

)

(4,500

)

Proceeds from commercial paper, net

999

22

Other

(105

)

523

Cash used in financing activities

(56,510

)

(43,575

)

Increase/(Decrease) in cash, cash equivalents and restricted cash

(6,749

)

217

Cash, cash equivalents and restricted cash, ending balances

$

29,180

$

40,006

Supplemental cash flow disclosure:

Cash paid for income taxes, net

$

9,301

$

10,276

Cash paid for interest

$

1,406

$

1,327

Press Contact:
Josh Rosenstock
Apple
[email protected]
(408) 862-1142

Investor Relations Contact:
Tejas Gala
Apple
[email protected]
(669) 227-2402

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