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ERROR: type should be string, got "https://www.barrons.com/articles/PR-CO-20181101-922088\nBW Wire\nApple Reports Fourth Quarter Results\nNov. 1, 2018 4:35 pm ET\nRevenue Up 20 Percent and EPS Up 41 Percent to New September Quarter Records\nServices Revenue of $10 Billion Reaches New All-Time High\nCUPERTINO, Calif.--(BUSINESS WIRE)--November 01, 2018--\nApple(R) today announced financial results for its fiscal 2018 fourth quarter ended September 29, 2018. The Company posted quarterly revenue of $62.9 billion, an increase of 20 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.91, up 41 percent. International sales accounted for 61 percent of the quarter's revenue.\nServices revenue reached an all-time high of $10 billion. Excluding a one-time favorable adjustment of $640 million recognized in the fourth quarter of fiscal 2017, Services revenue grew from $7.9 billion in the fourth quarter of fiscal 2017 to $10 billion in the fourth quarter of fiscal 2018, an increase of 27 percent.\n\"We're thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our 2 billionth iOS device, celebrated the 10th anniversary of the App Store and achieved the strongest revenue and earnings in Apple's history,\" said Tim Cook, Apple's CEO. \"Over the past two months, we've delivered huge advancements for our customers through new versions of iPhone, Apple Watch, iPad and Mac as well as our four operating systems, and we enter the holiday season with our strongest lineup of products and services ever.\"\n\"We concluded a record year with our best September quarter ever, growing double digits in every geographic segment. We set September quarter revenue records for iPhone and Wearables and all-time quarterly records for Services and Mac,\" said Luca Maestri, Apple's CFO. \"We generated $19.5 billion in operating cash flow and returned over $23 billion to shareholders in dividends and share repurchases in the September quarter, bringing total capital returned in fiscal 2018 to almost $90 billion.\"\nApple is providing the following guidance for its fiscal 2019 first quarter:\n-- revenue between $89 billion and $93 billion\n-- gross margin between 38 percent and 38.5 percent\n-- operating expenses between $8.7 billion and $8.8 billion\n-- other income/(expense) of $300 million\n-- tax rate of approximately 16.5 percent before discrete items\nApple's board of directors has declared a cash dividend of $0.73 per share of the Company's common stock. The dividend is payable on November 15, 2018 to shareholders of record as of the close of business on November 12, 2018.\nApple will provide live streaming of its Q4 2018 financial results conference call beginning at 2:00 p.m. PDT on November 1, 2018 at www.apple.com/investor/earnings-call/. This webcast will also be available for replay for approximately two weeks thereafter.\nApple periodically provides information for investors on its corporate website, apple.com, and its investors 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.\nThis 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 estimated revenue, gross margin, operating expenses, other income/(expense), tax rate, and plans for return of capital. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation: 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, price competition, or the introduction of new products, including new products 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 inventory and other asset risks associated with the Company's need to order, or commit to order, product components in advance of customer orders; 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; the dependency of the Company on third-party intellectual property and digital content, 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, such as a potential finding that the Company has infringed on the intellectual property rights of others; the impact of changes to laws and regulations that affect the Company's activities, including the Company's ability to offer products or services to customers in different regions; the ability of the Company to manage risks associated with its international activities, including complying with laws and regulations affecting the Company's international operations; 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 key executives and employees; political events, international trade disputes, war, terrorism, natural disasters, public health issues, 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 and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company's 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.\nApple 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 four software platforms -- iOS, 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.\nNOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple's Media Helpline at (408) 974-2042.\n(c) 2018 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple Inc. Other company and product names may be trademarks of their respective owners.\nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)\n(In millions, except number of shares which are reflected in thousands\nand per share amounts)\nThree Months Ended Twelve Months Ended\n------------------------ ------------------------\nSeptember September September September\n29, 2018 30, 2017 29, 2018 30, 2017\n----------- ----------- ----------- -----------\nNet sales $ 62,900 $ 52,579 $ 265,595 $ 229,234\nCost of sales (1) 38,816 32,648 163,756 141,048\nGross margin 24,084 19,931 101,839 88,186\nResearch and\n(1) 3,750 2,997 14,236 11,581\nSelling, general\nexpenses 7,966 6,811 30,941 26,842\nOperating income 16,118 13,120 70,898 61,344\nincome/(expense),\nnet 303 797 2,005 2,745\nIncome before\nprovision for\nincome taxes 16,421 13,917 72,903 64,089\nincome taxes 2,296 3,203 13,372 15,738\nNet income $ 14,125 $ 10,714 $ 59,531 $ 48,351\n======= ======= ======= =======\nBasic $ 2.94 $ 2.08 $ 12.01 $ 9.27\nDiluted $ 2.91 $ 2.07 $ 11.91 $ 9.21\nShares used in\ncomputing earnings\nper share:\nBasic 4,801,589 5,149,428 4,955,377 5,217,242\nDiluted 4,847,547 5,183,585 5,000,109 5,251,692\nCash dividends\ndeclared per\nshare $ 0.73 $ 0.63 $ 2.72 $ 2.40\n(1) Includes\nshare-based\nexpense as\nCost of sales $ 251 $ 215 $ 1,010 $ 877\ndevelopment $ 681 $ 569 $ 2,668 $ 2,299\nadministrative $ 413 $ 390 $ 1,662 $ 1,664\nCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)\nand par value)\nSeptember 29, September 30,\n2018 2017\n--------------- -----------------\nCash and cash equivalents $ 25,913 $ 20,289\nMarketable securities 40,388 53,892\nAccounts receivable, net 23,186 17,874\nInventories 3,956 4,855\nVendor non-trade receivables 25,809 17,799\nOther current assets 12,087 13,936\n-------------- --------------\nTotal current assets 131,339 128,645\nNon-current assets:\nMarketable securities 170,799 194,714\nProperty, plant and equipment,\nnet 41,304 33,783\nOther non-current assets 22,283 18,177\nTotal non-current assets 234,386 246,674\nTotal assets $ 365,725 $ 375,319\n========== ==========\nLIABILITIES AND SHAREHOLDERS'\nEQUITY:\nAccounts payable $ 55,888 $ 44,242\nOther current liabilities 32,687 30,551\nDeferred revenue 7,543 7,548\nCommercial paper 11,964 11,977\nTerm debt 8,784 6,496\nTotal current liabilities 116,866 100,814\nTerm debt 93,735 97,207\nOther non-current liabilities 45,180 40,415\nTotal non-current liabilities 141,712 140,458\nTotal liabilities 258,578 241,272\nShareholders' equity:\nCommon stock and additional\npaid-in capital, $0.00001 par\nvalue: 12,600,000 shares\nauthorized; 4,754,986 and\n5,126,201 shares issued and\noutstanding, respectively 40,201 35,867\nRetained earnings 70,400 98,330\nAccumulated other comprehensive\nincome/(loss) (3,454) (150)\nTotal shareholders' equity 107,147 134,047\nTotal liabilities and\nshareholders' equity $ 365,725 $ 375,319\nCash and cash equivalents, beginning\nof the period $ 20,289 $ 20,484\n---------- --- ---------\nNet income 59,531 48,351\nAdjustments to reconcile net\nincome to cash generated by\nDepreciation and amortization 10,903 10,157\nexpense 5,340 4,840\nDeferred income tax\nexpense/(benefit) (32,590) 5,966\nOther (444) (166)\nChanges in operating assets and\nAccounts receivable, net (5,322) (2,093)\nInventories 828 (2,723)\nVendor non-trade receivables (8,010) (4,254)\nOther current and non-current\nassets (423) (5,318)\nAccounts payable 9,175 8,966\nDeferred revenue (44) (626)\nliabilities 38,490 1,125\nCash generated by operating\nactivities 77,434 64,225\nPurchases of marketable\nsecurities (71,356) (159,486)\nProceeds from maturities of\nmarketable securities 55,881 31,775\nProceeds from sales of marketable\nsecurities 47,838 94,564\nPayments for acquisition of\nproperty, plant and equipment (13,313) (12,451)\nPayments made in connection with\nbusiness acquisitions, net (721) (329)\nPurchases of non-marketable\nsecurities (1,871) (521)\nProceeds from non-marketable\nsecurities 353 126\nOther (745) (124)\nCash generated by/(used in)\ninvesting activities 16,066 (46,446)\nProceeds from issuance of common\nstock 669 555\nPayments for taxes related to net\nshare settlement of equity\nawards (2,527) (1,874)\nPayments for dividends and\ndividend equivalents (13,712) (12,769)\nRepurchases of common stock (72,738) (32,900)\nProceeds from issuance of term\ndebt, net 6,969 28,662\nRepayments of term debt (6,500) (3,500)\nChange in commercial paper, net (37) 3,852\nCash used in financing\nactivities (87,876) (17,974)\nIncrease/(Decrease) in cash and cash\nequivalents 5,624 (195)\nCash and cash equivalents, end of\nthe period $ 25,913 $ 20,289\n========== === =========\nSupplemental cash flow disclosure:\nCash paid for income taxes, net $ 10,417 $ 11,591\nCash paid for interest $ 3,022 $ 2,092\nQ4 2018 Unaudited Summary Data\n(Units in thousands, Revenue in millions)\nSequential Year/Year\nQ4 2018 Q3 2018 Q4 2017 Change Change\n--------------- --------------- --------------- ---------------- --------------\nReportable\nSegments Revenue Revenue Revenue Revenue Revenue\n------- ------- ------- --------- -------\nAmericas $27,517 $24,542 $23,099 12% 19%\nEurope 15,382 12,138 13,009 27% 18%\nChina 11,411 9,551 9,801 19% 16%\nJapan 5,161 3,867 3,858 33% 34%\nPacific 3,429 3,167 2,812 8% 22%\nTotal Apple $62,900 $53,265 $52,579 18% 20%\n------ -------\nSummary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue\n------ ------- ------ ------- ------ ------- ----- --------- ----- -------\niPhone (1) 46,889 $37,185 41,300 $29,906 46,677 $28,846 14% 24% 0% 29%\niPad (1) 9,699 4,089 11,553 4,741 10,326 4,831 - 16% - 14% - 6% - 15%\nMac (1) 5,299 7,411 3,720 5,330 5,386 7,170 42% 39% - 2% 3%\n(2) 9,981 9,548 8,501 5% 17%\n(1)(3) 4,234 3,740 3,231 13% 31%\n(1) Includes deferrals and amortization of related software upgrade rights and non-software\n(2) Includes revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other\nservices. Services net sales in the third quarter of 2018 included a favorable one-time item of\n$236 million in connection with the final resolution of various lawsuits. Services net sales in\nthe fourth quarter of 2017 included a favorable one-time adjustment of $640 million due to a\nchange in estimate based on the availability of additional supporting information.\n(3) Includes sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and\nother Apple-branded and third-party accessories.\nCONTACT: Apple\nKristin Huguet, 408-974-2414\nkhuguet@apple.com\nInvestor Relations Contacts:\nNancy Paxton, 408-974-5420\npaxton1@apple.com\nMatt Blake, 408-974-7406\nmattblake@apple.com\nSOURCE: Apple Inc."