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October 19, 2001 Headlines--- Alliance Funding, La Hambra,Ca Up-Date State Legislature Up-Dates---Dennis Brown, ELA eCredit.com and Ryder System Leasing Win Best Practice Award; IT Excellence by eWeek and Technology Managers Forum Internet Chamber of Commerce Meeting Northern Leasing Systems, a micro-ticket lessor, Goes On-Line Heller Financial, Inc. Declares Dividends for Series C & D Preferred Stocks Equipment Leasing Association Thursday Newsletter Highlights GATX Rail Elects Yvonne Scott to V-P & CFIO Microsoft and Computer Maker Round-Up Join Association for Government Leasing and Finance ( learn about this organization, please think about it ) ### denotes press release Alliance Funding, La Habra, CA The La Habra Police Department has concluded its investigation re: Alliance Funding in La Habra, CA. For the moment, the matter is closed. Detective D.R. Smith #233 Fraud/ Forgery/ Bunco La Habra Police Department 150 N. Euclid St. La
Habra, CA 90631 (562) 905-9763 _________________________________________________________________ State Legislature Up-Dates---Dennis Brown, ELA The links below are the National Conference of State Legislatures (NCSL) updates on legislative appointments of delegates to the Governing States and an update on state action on simplification. Please note the first section of the appointment attachment only shows the process for appointments and the last few pages show the appointments that have been communicated to NCSL. Graham Williams, Policy Associate, Commerce and Communications, NCSL urges everyone to hold November 28-29, for the first meeting of the Governing States in Salt Lake City. NCSL, NGA, MTC and FTA are still working out the details for the hotel and other logistics and an official meeting notice will be available soon. Any questions can be directed to Graham Williams at 202/624-8683. Dennis Brown http://www.leasingnews.org/archives/October%202001/apointments.doc http://www.leasingnews.org/archives/October%202001/state_action_2001.xls ______________________________________________________________ ### ################# ########################## ############ eCredit.com and Ryder System Leasing Win Best Practice Award; IT Excellence by eWeek and Technology Managers Forum
DEDHAM, Mass. and MIAMI-- --eCredit.com and Ryder System, Inc. (NYSE:R) have received first place for Business Process Improvement in the sixth annual Best Practice Awards, co-sponsored by eWeek magazine and the Technology Managers Forum, an association of information technology managers. The award, which recognizes Ryder's implementation of eCredit software for credit process automation and the significant advances in pricing and revenue generation that resulted, was recently presented at the Technology Managers Forum Fall conference in New York City. Recipients were selected from a pool of over 150 applicants by practicing IT professionals from Fortune 1000 companies. Ryder and eCredit submitted a joint application in the Business Process Improvement category, for the project that best uses technology to improve business processes in an organization. The term `best practice' acknowledges a standard of excellence that can be quantified, adapted and repeated. Ryder implemented the eCredit.com InstantDecision(TM) solution for credit decision automation in its commercial truck leasing business, which should ultimately generate an estimated $4-6 million in increased annual revenue. Using eCredit, Ryder is able to link the credit decision to the lease interest rate, for more accurate pricing and increased visibility into portfolio risk. The implementation also ensures consistency in credit decisions and allows Ryder to change credit policy quickly should risk tolerance change, such as in changing economic conditions. "Improving our credit operations with eCredit.com Instant Decision has been a strategic business enabler for Ryder," said Corliss J. (Corky) Nelson, Senior Executive Vice President and Chief Financial Officer of Ryder. "We've been able to increase our sales and profits and be more responsive to our customers. This award is a testament to improved business processes through the collaboration and hard work of our credit and IT departments." According to eCredit.com president and CEO Christopher Richmond, "Being chosen for a Best Practice Award recognizes the great process improvements seen in Ryder's truck leasing business using our software. Most importantly, this demonstrates that automating the credit decision process is a best practice, and that other companies can emulate Ryder's success, finding new efficiencies and improving consistency in the credit-granting process. This award should raise awareness of the dramatic business benefits to be gained by automating the financial value chain." About eCredit.com eCredit.com enables Fortune 1000 companies, financial services organizations and e-businesses to transform business processes throughout the financing supply chain to strengthen customer relationships and grow the bottom line. eCredit.com solutions automate credit and underwriting to better manage risk and deliver a portfolio of financing options at the point-of-sale that increases customer purchasing power. Included among the Company's customers are ChevronTexaco, Cisco, CIT Group, Gateway, Ryder System, Inc. and Textron. eCredit.com, headquartered in Dedham, Mass., is a partner company of Internet Capital Group (NASDAQ: ICGE). For additional information, visit eCredit.com on the Web at www.ecredit.com. About Ryder System, Inc. Ryder provides a continuum of leading-edge logistics, supply chain and transportation management solutions worldwide. Ryder's product offerings range from full-service leasing, commercial rental and programmed maintenance of vehicles to integrated services such as dedicated contract carriage and carrier management. Additionally, Ryder offers comprehensive supply chain solutions, consulting, lead logistics management services and e-Business solutions that support customers' entire supply chains, from inbound raw materials and parts through distribution and delivery of finished goods. Ryder serves customer needs throughout North America, in Latin America, Europe and Asia. For the fifth consecutive year, Ryder was featured in the 2001 Fortune Most Admired Companies survey of corporate reputations. Ryder has ranked among the top five in its industry category since 1997. Forbes named Ryder to its "Magnetic 40" as "Best in Transportation and Logistics" for creating a "network of partnerships that can spur growth, innovation and most important, serve customers better." InternetWeek named Ryder as one of the top 100 U.S. companies for effectiveness in using the Internet to achieve tangible business benefits. For the fourth consecutive year, Inbound Logistics recognized Ryder in 2001 as the top third-party logistics provider. The National Safety Council has selected Ryder to receive the 2002 Green Cross for Safety Medal - its highest honor - for exemplary commitment to workplace safety and corporate citizenship. Ryder's stock is a component of the Dow Jones Transportation Average and the Standard & Poor's 500 Index. With 2000 revenue of $5.34 billion, Ryder was ranked 333rd on the Fortune 500 list and 319th on the Forbes 500 in 2001. For more information on Ryder System, Inc., visit www.ryder.com. ########## ############################### ########### You Are Inviting to Attend Internet Chamber of Commerce After-Hours Monday October 29, 2001 5:30 p.m. till 8:30 p.m. Denver Marriott Tech Center Denver, CO After-Hours Networking For Internet & Technology Professionals Co-Sponsored by BrassRing. Free to ICC members and $29 pre-payment for Non-Members - $8 MORE at door for non-members. Denver Marriott Tech Center, 4900 South Syracuse Denver, CO, Hotel Phone: 303-779-1100. Map to the Hotel. http://www.icc.org/ #### ########################## ##################### ########## Northern Consulting Builds Web-Based Lease Application Program That Reflects National Customization Trend New York, NY-Northern Leasing Systems, a micro-ticket lessor founded in 1992, announced the launch of its first Web-based application processing system. Among the benefits delivered by the new system are a two-day reduction in lease acceptance, the ability to respond to new business within 30 minutes, and 24/7 access for customers wanting to review lease transaction status. While many equipment leasing and finance companies are Web-enabling the front-end lease application process, Steven Bernardone, the chief information officer for Northern Leasing, says Chicago-based Northern Consulting built his company's system from scratch and designed it to integrate with Northern Leasing's back-end Oracle systems. Cameron Krueger, principal of Northern Consulting, notes that the project reflects a national trend toward more customized approaches. Northern Consulting exclusively serves the $450 billion global equipment leasing and finance industry. Krueger's team, made up of program developers and a business analyst, specifically designed the system to improve the operating efficiencies and accuracy of Northern Leasing's business operation, which closes up to 5,000 deals per month. The team completed the $80,000-project in record time, under budget and to the satisfaction of the client, he says. Prior to implementing the new system, Northern Leasing accepted applications by fax, and company personnel had to re-enter the customer data into Northern Leasing's accounting programs. The new system, which is based on active server scripts and Oracle standards to enable easy integration with industry-standard software, eliminates that redundant labor and associated manual data-entry errors. "Today it is all about integration," says Bernardone, who was not impressed with the web-enabled software packages he had evaluated. "We've become very specialized, and the technology we use needs to directly apply to our business." Bernardone notes that his company's new Web system, which can be accessed at the company's home page, also will enable mobile sales force to close deals faster. Northern Leasing's customers include independent sales organizations, banks, and captive leasing sales teams. In a competitive bidding process, Bernardone said he selected Northern Consulting based upon the company's solid reputation and the quick turn-around schedule offered. Indeed, the project, started in July, was completed this month, ahead of timelines offered by other vendors, according to Bernardone. While the two companies worked closely together on this project, and have similar names, they are not affiliated in any other way. -30- About Northern Leasing Systems, Inc. Northern Leasing Systems, Inc. (NLSI), is a New York City-based equipment finance company specializing in the origination and servicing of micro ticket leases. NLSI currently has more than 150 employees and has originated and services more than 200,000 equipment leases. Bernardone can be reached at sbernard@northernleasing.com. About Northern Consulting, LLC Chicago-based Northern Consulting provides systems, operations, and financial consulting exclusively to the global equipment leasing industry. Customers include Boeing Capital, Cisco Systems Capital, and dozens of small and mid-size lessors. Krueger can be reached at ckrueger@NorthernConsulting.com. Our New Feature: F.A. Q. http://www.leasingnews.org/FAQ/FAQ.htm #### ######################### ############################ Heller Financial, Inc. Declares Dividends for Series C and D Preferred Stocks
CHICAGO / -- Heller Financial, Inc. (NYSE: HF) has declared dividends on two of the Company's preferred stocks, Fixed Rate Noncumulative Perpetual Senior Preferred Stock, Series C, and Fixed Rate Noncumulative Perpetual Senior Preferred Stock, Series D. The Company declared a quarterly dividend of $1.67175 on each share of the 1,500,000 outstanding shares of the Fixed Rate Noncumulative Perpetual Senior Preferred Stock, Series C, payable on November 15, 2001 to the holders of record thereof on November 1, 2001. The Company declared a quarterly dividend of $1.7375 on each share of the 1,250,000 outstanding shares of the Fixed Rate Noncumulative Perpetual Senior Preferred Stock, Series D, payable on November 15, 2001 to the holders of record thereof on November 1, 2001. Heller Financial, Inc., is a worldwide commercial finance company providing a broad range of sophisticated, collateralized financing solutions. With nearly $20 billion in total assets, Heller offers equipment financing and leasing, sales finance programs, collateral and cash flow-based financing, financing for healthcare companies and financing for commercial real estate. The company also offers trade finance, factoring, asset-based lending, leasing and vendor finance products and programs to clients in Europe, Asia and Latin America. Heller's common stock is listed as "HF" on the New York and Chicago Stock Exchanges. Heller can be found on the World Wide Web at http://www.hellerfinancial.com . ##### ##################### ################################### _____________________________________________________________ ________________________________________________________________ ******************************** ELA E-Leasing Newsletter 10/18/01 ******************************** The ELA E-Leasing Newsletter is published every Thursday and is sponsored by the Equipment Leasing Association and its co-sponsor. To Get Full-Text Stories, go to the web page associated with the story you wish to read. The links to news stories require an ELA MEMBERS-ONLY NAME AND PASSWORD. To receive a password, please contact Daniel Aubain at database@elamail.com or phone 703/516-8377. NOTE: Address change/unsubscribe instructions and contact information can be found at the end of this e-mail. If you received this e-mail(but it was NOT forwarded to you by someone else) you are ALREADY subscribed. *********** The E-Leasing Newsletter is SPONSORED by: ********** Nassau Asset Management Recovery and Remarketing Specialists 1(800)462-7728 or 1(800)4-NASSAU GO HERE>>>>>> http://www.nasset.com WE GET RESULTS!!!!!!!!! Servicing The ELA for more than 10 years!!!!!! ***************************************************************** ****************************** 2. ELA California Members Meet With Tax Committee Chairman ****************************** On October 17, ELA members met with California Senate Revenue & Taxation Committee Chairman Jack Scott to promote passage from his committee of ELA backed legislation, Senate Bill 1123, giving lessees an option to pass the 6% Manufacturers Investment Credit (MIC) to the equipment lessor. Chairman Scott reported a $4 Billion deficit places emphasis on the projected cost of the ELA proposal being considered insignificant within the overall scheme of state fiscal issues. ELA will be following up to promote passage during legislative consideration of economic stimulus incentives. To receive periodic updates on this activity send an email request to dbrown@elamail.com. Please include your name and company. ************* The E-Leasing Newsletter is sponsored by: ************* AssetControl Corporation Your full service asset management company. Including: Recovery, Remarketing, Appraisal, Inspection, & Auctions 1(888)227-0444 email: info@assetcontrol.com VISIT OUR WEBSITE >>>>>> http://www.assetcontrol.com ********************************************************************* ****************************** 12. Have you thought of hiring a student intern? ****************************** The Equipment Leasing and Finance Foundation hosts a database of university graduate and undergraduate students interested in working within this industry. Employing interns is more than a charitable deed that contributes to the educational development of our next generation. It is a smart business practice because it augments your company's full-time professional staff and can advance specific corporate objectives. Thousands of businesses nation-wide employ part-time interns, and these businesses recognize the benefits of an effective internship program. To select an intern that is right for your project, please visit the Foundation internship database at http://www.leasefoundation.org/ss_academe.htm. Questions, contact Lisa Levine at llevine@elamail.com, 703-527-8655. (This is a great service. You can also do this yourself, without pre-screening. And you don't need to be a large company to participate. Contact you local junior college, college or university to learn about their mentor or intern program. editor ) ****************************** 16. ELA Calendar ****************************** For more information on the events listed below, or to view ELA's entire calendar, visit the ELA Conference & Training Home Page at http://www.elaonline.com/events/ and click on the links to programs of interest to you.
October 28-31, 2001 40th Annual Convention Boca Raton Resort and Spa, Boca Raton, FL http://www.elaonline.com/events/2001/annconv/ November 7-8, 2001 2001 Fundamentals of Credit in the Equipment Leasing & Finance Industry Four Points Hotel Chicago O'Hare, Schiller Park, IL http://www.elaonline.com/events/2001/fundcredit/ November 13-14, 2001 Annual Investors Conference The Westin Copley Place Hotel, Boston, MA http://www.elaonline.com/events/2001/investor/ December 3-5, 2001 Principles of Leasing Philadelphia Marriott, Philadelphia, Pennsylvania http://www.elaonline.com/events/2001/principles/ December 3-5, 2001 Principles of Leasing Sheraton Fisherman's Wharf, San Francisco, California http://www.elaonline.com/events/2001/principles/ **************************************************** Submit your own company news story for ELA'S E-LEASING NEWS! Visit http://www.elaonline.com/news/newsaddedit2.cfm **************************************************** *** FOR MORE NEWS For more leasing news, visit ELA Online's News Home Page at http://www.elaonline.com/news/ *** SUBSCRIPTION INFORMATION To update your current subscription, please e-mail your name, company, and the e-mail address to Daniel Aubain at database@elamail.com or phone 703/516-8377. Fax: 703/527-2649. To unsubscribe, please visit http://www.elaonline.com/discussions/MembersOnly/#ELAnewsletter. If you have other questions or comments relating to ELA E-Leasing Newsletter, please e-mail Amy J. Miller, Vice-President of Communications, at amiller@elamail.com This newsletter is free to ELA members. Forward it to a co-worker! Copyright 2001 by the Equipment Leasing Association http://www.elaonline.com/ Phone: 703/527-8655 Fax: 703/527-2649 ************* The E-Leasing Newsletter is sponsored by: ************* AssetControl Corporation Your full service asset management company. Including: Recovery, Remarketing, Appraisal, Inspection, & Auctions 1(888)227-0444 email: info@assetcontrol.com VISIT OUR WEBSITE >>>>>> http://www.assetcontrol.com *******************************************************************
Join Association for Government Leasing and Finance In the Equipment Leasing Association Propensity to Lease Report, it was noted that more governmental agency will be looking at lease financing. There have been other studies to indicate this, especially in such economic times that we are experiencing. It may be a good idea then to join this association, or attend one of their conferences to learn more how you can get a larger piece of the pie. This recommendation does not mean for you to leave you present organization. Don’t give up your “lifeline.” Look for new ways to do business, perhaps to help existing vendors and customers, and help this organization grow. The smart leasing professionals belongs to several associations, not just one. editor Association for Governmental Leasing & Finance 2025 M. Street NW Suite 800 Washington, DC. 20036-3309 202.367.1192 202.367.2192 - Fax web site: www.aglf.org General. Trade association Independent Began: 1981. Founded in 1981 to serve municipal leasing industry. Publishes Bi-monthly newsletter; sponsors 2 annual conferences; 50-state leasing survey; federal leasing survey; and conducts numerous industry projects. Two types of membership: regular member - private sector organizations active in leasing/finance; governmental member - any state, territory, US possession, District of Columbia, or political subdivision of above. Executive Management. Gary Satterfield, Executive Director. Additional Staff. Debra Podrat, Program/Membership Coordinator. Leasing Data. Lease Types: municipal, federal. Markets: National. Dues information: As many people as would like to from any one company may join. One person must be designated the Regular Member and pay $650/year dues. The other members are designated Additional Members and pay $150/year dues. There are approximately 250 members. Non-members are very welcome at the conference. For registration materials, they can call or email AGL&F Headquarters 202.742.2453, info@aglf.org Association for Governmental Leasing & Finance 1255 Twenty-third Street, NW Suite 200 Washington, DC 20037 202.742.AGLF(2453) 202.833.3636 FAX Info@aglf.org web site: www.aglf.org -- Jorie Lagerwey Executive Assistant 202.742.2453 fax 202.833.3636 jlagerwey@aglf.org #### ############################# ##################### GATX Rail Elects Yvonne Scott to Vice President and Chief Information Officer
CHICAGO/ -- GATX Rail announced the election of Yvonne Scott to vice president and chief information officer. She will lead the efforts of GATX Rail in creating systems that support customer solutions. Ms. Scott (43) joined GATX in 1990 as manager -- information systems audit. Since that time, she has held a variety of positions, including director of business development and information services, director of information services and administration, and vice president of GATX's former Integrated Solutions Group. In her most recent position as vice president - strategic initiatives at GATX Rail, Ms. Scott has been an integral part of the strategic planning process and the implementation of key Rail imperatives. David M. Edwards, president, GATX Rail noted, "Our information resources function is a vital element in providing customers with value-creating solutions. Yvonne's background, leadership abilities and strategic perspective make her the ideal choice to direct this effort." Ms. Scott has a Masters degree in Business Administration from Northern Illinois University and a Bachelor of Science degree in General Management and Accounting from Purdue University and is a Certified Public Accountant. In addition, Ms. Scott has published articles and presented seminar topics on third-party managed services. GATX (NYSE: GMT) is a specialized finance and leasing company. GATX uniquely combines asset knowledge and services, structuring expertise, creative partnering and risk capital to serve customers and partners worldwide. GATX specializes in railcar and locomotive leasing, aircraft operating leasing, information technology leasing, venture finance and diversified finance. GATX Rail is a division of GATX Financial Corporation, a subsidiary of GATX Corporation. Investor, corporate information and press releases may be found at http://www.gatx.com . A variety of current financial information, historical financial information, press releases and photographs are available at this site. GATX press releases may be obtained by automated PR News Company News On-Call's automated fax service at 800-758-5804. The company identification number for GATX is 105121. #### ########################### ######################### Microsoft fell 42 percent. For the three months ended Sept. 30, Microsoft earned $1.28 billion, or 23 cents per share, compared with $2.2 billion, or 46 cents per share, in the year-ago period. The computer makers also saw much red, as: Computer maker Gateway misses Wall Street expectations By Seth HettenaSAN DIEGO (AP) Computer maker Gateway Inc. posted a $520 million quarterly loss Thursday, citing the costs of corporate restructuring, soured investments and weakened demand for its products following the Sept. 11 attacks. The results missed Wall Street's diminished expectations and extended Gateway's losses on the year to more than $1 billion. Still, the No. 4 U.S. computer maker said it was ''cautiously optimistic'' that it would make a profit in the fourth quarter, but analysts were not so sure. Gateway took a $571 million charge related to its exit from international operations and the closure of some U.S. call centers and factories. The company also laid off a quarter of its global work force of 19,000 and moved its headquarters from San Diego to the suburb of Poway. Excluding one-time charges, Gateway lost $83 million, or 17 cents a share in the third quarter, missing Wall Street's lowered expectations by two cents, according to analysts surveyed by Thomson Financial/First Call. In the same period a year ago, Gateway earned $132 million or 40 cents a share. With the exception of industry leader Dell Computer Corp., the PC business has been battered by its first decline in worldwide in 15 years. But Gateway has been hit especially hard due, in part, to its focus on the over saturated U.S. consumer market. Gateway, the first PC maker to ship systems with Microsoft's new operating system, Windows XP, reported that U.S. computer sales in the third quarter were 818,000, down by nearly a third from the year-ago period. ''It's a tough environment out there. It's going to continue to be a tough environment,'' said Ted Waitt, Gateway chairman and chief executive officer. But Waitt was confident the company he founded 16 years ago in an Iowa farmhouse had turned the corner on its recent problems. ''We've got a lot of distractions behind us,'' he said. ''We have control of our business and our destiny.'' Joseph Burke, Gateway's chief financial officer, said sales have rebounded in the past few weeks and he said he was ''cautiously optimistic'' that the company would return to profitability next quarter. But Eric Rothdeutsch, an analyst with Roberston Stephens, doubted whether Gateway would be in the black by the end of the year. ''I think it's clear that Gateway has some challenging issues in front of it,'' he said. ''It is going to be a challenge for them to be profitable in the fourth quarter.'' Rothdeutsch said he did not expect Gateway to turn a profit until the second quarter of 2002, at the earliest. Gateway is moving to tap high-growth, high-tech U.S. markets such as networking and computer services and software, Waitt said. Gateway said that $140 million of third-quarter revenue came at the point of sale, and $102 million was recorded after the sale. On the Net: http://www.gateway.com ___________________________________________________________________ Sun Microsystems posts $180 million loss, beats expectations SAN JOSE, Calif. (AP) Sun Microsystems Inc. posted a first-quarter loss and 43 percent decline in revenue Thursday as it struggled with the continuing high-tech slump and effects of the terrorist attacks. For the three months ended Sept. 30, the high-end computer and software maker lost $180 million, or 6 cents per share, compared with a profit of $456 million, or 14 cents a share, in the same period last year. Excluding special items, Sun lost $158 million, or 5 cents a share. The results beat Wall Street's reduced expectations. According to a survey by Thomson Financial/First Call, analysts were expecting a loss of 6 cents per share. The company posted revenues of $2.86 billion, compared with $5.05 billion last year. Analysts were expecting $2.9 billion. ''The current economic environment is very difficult, but the strength of Sun's vision and strategy create a competitive advantage,'' Sun chief executive Scott McNealy said in a statement. On Oct. 5, Sun announced 3,900 job cuts and warned that its fiscal first-quarter earnings would fall short of expectations, then at a loss of 4 cents a share. Company officials also blamed the Sept. 11 terrorist attacks. ''Our business nearly ground to a halt in the two weeks following that tragic day,'' Michael Lehman, Sun's chief financial officer, said during the Oct. 5 conference call with analysts. Analysts agreed the attacks affected Sun's business, but said there was trouble before then, too. Sun posted record profits during the height of the Internet boom but has been hit hard by the death of dot-coms, reductions in corporate technology spending and the deflation of the telecommunications industry. ''The business had been weakening,'' said Richard Chu, an analyst at SG Cowen Securities. He said Sun's latest release shed no new light on how much of its loss was attributable to the attacks. ''It will become clearer as we get more data in from this current quarter,'' he said. The Palo Alto, Calif.-based company announced then it would not hold a conference call after its first-quarter earnings announcement. Sun is scheduled to hold another financial update in early December. Sun, which designs its own chips and software for its machines, recently unveiled a Unix-based server that it hopes will lead the return to profitability. IBM announced a competing line the following week. The company ended the quarter with $6 billion in cash. Shares of Sun closed up 8 cents to $8.88 on the Nasdaq Stock Market in anticipation of its first-quarter results. It rose another 6 cents in after-hours trading. On the Net: Sun Microsystems: http://www.sun.com ___________________________________________________________________ Apple profits drop 61 percent, beat Wall Street expectations CUPERTINO, Calif. (AP) Apple Computer Inc. reported a 61 percent drop in fourth-quarter profits, beating Wall Street's expectations. But the company warned of a shortfall in profits and revenues in its fiscal first quarter. Investors shrugged off the warning, however, sending shares 6 percent higher in trading Thursday. Citing the weak economy and uncertain political environment, Apple officials said it expects revenue in the first quarter to be flat at about $1.4 billion and earnings per share are now expected to fall to 10 cents per share. Thomson Financial/First Call estimates were for earnings of 18 cents per share on revenue of $1.6 billion. ''Right now, we're not confident about consumer spending given the environment,'' said chief financial officer Fred Anderson. For the three months ended Sept. 29, the Cupertino-based company reported net income of $66 million, or 19 cents per share compared with $170 million, or 47 cents a share, in the year-ago quarter. Excluding a one-time investment gain, the company earned $65 million, or 18 cents per share. Wall Street analysts surveyed by Thomson Financial/First Call predicted earnings of 16 cents per share. Revenue for the quarter reached $1.45 billion, down 22 percent from the year-ago period. The Sept. 11 attacks have hurt sales at Apple's retail stores, and company officials expect a ''small loss'' instead of break-even results from the stores for the December quarter. But Apple, which so far has 11 stores, still plans to have 25 stores opened by the end of calendar year, Anderson told analysts in a conference call. Sales from Apple's online store continued to grow, accounting for 43 percent of fourth-quarter revenues, Anderson said. For the fiscal year ended Sept. 29, Apple reported losing $25 million on revenues of $5.36 billion. In 2000, the company earned $786 million, or $2.18 per share, on revenues of $7.98 billion. Seeing no upturn in the slumping personal computer market, Apple officials in July lowered their fiscal year revenue expectations to about $3 billion from a range of $3.2 billion to $3.4 billion. Shares of Apple rose $1.01 to close at $18 in trading Thursday on the Nasdaq Stock Market. The personal computer industry has been struggling with the economic slowdown. Analysts predict declines in global shipments in 2001 and no recovery until 2003. Despite the industry's gloomy performance, Apple is forging ahead with product rollouts and upgrades. Tuesday, the company beefed up its iBook and PowerBook G4 mobile laptops, adding faster processors, bigger hard drives and wireless networking features. The company kept prices the same. Next week, Apple said it will announce a new digital device ''not a Mac'' but won't give any more details. On the Net: http://www.apple.com ----------------------------------------------------------------------------------------------------- |
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