Wednesday, January 30, 2008

“High School Musical” Video Game Franchise Coming This Spring

Disney Interactive Studios Invites Fans to “Work This Out” With the Latest Addition to Its Successful “High School Musical” Video Game Franchise Coming This Spring Disney Has Shipped 3.8 Million Units of “High School Musical” Themed Video Games Worldwide

BURBANK, Calif.--January 30, 2008 --Disney Interactive Studios, the interactive entertainment affiliate of The Walt Disney Company (NYSE:DIS), announced today that the newest video game in the “High School Musical” franchise – High School Musical: Work This Out! for Nintendo DS™ will be available April 2008. High School Musical: Work This Out! allows fans of the popular Disney Channel movies to dive into the world of the Lava Springs Resort in an all new musical adventure game, featuring storylines extending beyond “High School Musical 2.” For the first time on Nintendo DS, High School Musical: Work This Out! features all 10 songs from the movie, and allows players to take their favorite songs from the film on-the-go by using the Nintendo DS as a music player. This unique feature lets players listen to their favorite “High School Musical 2” songs even while the Nintendo DS is closed.

High School Musical: Work This Out! follows the extremely successful launch of High School Musical: Sing It!, High School Musical: Makin’ the Cut and High School Musical: Living the Dream this past holiday season. Across all titles and platforms in the franchise, Disney Interactive Studios has shipped 3.8 million copies of the video games worldwide. According to NPD data for the U.S., the “High School Musical” video games achieved Top 20 positions on each published platform for the month of December 2007. High School Musical: Sing It!, a karaoke-themed video game featuring songs from both “High School Musical” films, ranked as the #6 top selling Wii™ home video game system title and #11 selling PlayStation®2 computer entertainment system title. High School Musical: Makin’ the Cut, a rhythm-based music and adventure game, ranked #10 for Nintendo DS. High School Musical: Living the Dream ranked #5 among the GameBoy® Advance titles for the same month.

“The phenomenon of ‘High School Musical’ goes beyond simply watching the movies,” said Craig Relyea, senior vice president, global marketing, Disney Interactive Studios. “The success of the video game franchise proves that fans want to immerse themselves in the world of ‘High School Musical,’ whether they are singing the songs or embarking on adventures with the cast. This new experience once again underscores Disney’s passion to provide fans with unparalleled entertainment as they wait for ‘High School Musical 3’ to arrive, which will also usher in a new generation of video games this holiday season.”

High School Musical: Work This Out!, due out in April, is the only musical adventure game allowing fans to immerse themselves in the world of “High School Musical 2.” Fans can play as their favorite High School Musical characters Troy, Gabriella, Sharpay, Ryan, Chad and Taylor to explore the Lava Springs Resort as seen in the movie. Throughout the game, players go on various adventures at the resort, compete in time-based challenges and play different rhythm games, all while listening to the hit songs from “High School Musical 2.”

High School Musical: Work This Out!, rated E for Everyone, will be available in April 2008 exclusively for Nintendo DS for $29.99.

About Disney Interactive Studios

Disney Interactive Studios is the interactive entertainment affiliate of The Walt Disney Company (NYSE:DIS). Disney Interactive Studios self publishes and distributes a broad portfolio of multi-platform video games and interactive entertainment worldwide. The company also licenses properties and works directly with other interactive game publishers to bring products for all ages to market. Disney Interactive Studios is based in Glendale, California and has five internal game development studios around the world including Avalanche Software, Fall Line Studio, Propaganda Games, Black Rock Studio and Junction Point Studios.
Contacts Disney Interactive StudiosMichelle Jacob, 818-553-6877michelle.jacob@disney.comorAccess Communications for Disney Interactive StudiosKatie Pagliara,

Tuesday, January 22, 2008

Apple Reports First Quarter Results

Apple Reports First Quarter Results

Best Quarterly Revenue & Earnings in Apple History Mac, iPod & iPhone Sales Break Previous Records

CUPERTINO, Calif., Jan. 22 2008 -- Apple® today announced financial results for its fiscal 2008 first quarter ended December 29, 2007. The Company posted revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share. These results compare to revenue of $7.1 billion and net quarterly profit of $1 billion, or $1.14 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, up from 31.2 percent in the year-ago quarter. International sales accounted for 45 percent of the quarter's revenue. Apple shipped 2,319,000 Macintosh® computers, representing 44 percent unit growth and 47 percent revenue growth over the year-ago quarter. The Company sold 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Quarterly iPhone(TM) sales were 2,315,000.

"We're thrilled to report our best quarter ever, with the highest revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks."

"Apple's revenue grew 35 percent year-over-year to $9.6 billion, an increase of almost $2.5 billion over the previous December quarter's record-breaking results," said Peter Oppenheimer, Apple's CFO. "Our strong results produced cash flow from operations of over $2.7 billion during the quarter, yielding an ending cash balance of over $18.4 billion. Looking ahead to the second quarter of fiscal 2008, we expect revenue of about $6.8 billion and earnings per diluted share of about $.94."

Apple will provide live streaming of its Q1 2008 financial results conference call utilizing QuickTime®, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PST on Tuesday, January 22, 2008 at and will also be available for replay.

This press release contains forward-looking statements about the Company's estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include potential litigation and government enforcement actions that may result from the matters investigated by the special committee of the board of directors and the restatement of the Company's consolidated financial statements; unfavorable results of legal proceedings; the effect of competitive and economic factors, and the Company's reaction to those factors, on consumer and business buying decisions with respect to the Company's products; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; continued competitive pressures in the marketplace; the Company's reliance on sole service providers for iPhone in the US, UK, Germany and France; the continued availability on acceptable terms of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the effect that product quality problems could have on the Company's sales and operating profits; the inventory risk associated with the Company's need to order or commit to order product components in advance of customer orders; the effect that the Company's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company's dependency on the performance of distributors and other resellers of the Company's products; the Company's reliance on the availability of third-party digital content; and the potential impact of a finding that the Company has infringed on the intellectual property rights of others. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the SEC, including the Company's Form 10-K for the fiscal year ended September 29, 2007 and its Form 10-Q for the quarter ended December 29, 2007 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

© 2008 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iPhone and QuickTime are trademarks of Apple. Other company and product names may be trademarks of their respective owners.


(in millions, except share and per share amounts)

Three Months Ended December 29, 2007 December 30, 2006

Net sales $9,608 $7,115 Cost of sales (1) 6,276 4,895 Gross margin 3,332 2,220 Operating expenses: Research and development (1) 246 184 Selling, general and administrative (1) 960 714

Total operating expenses 1,206 898

Operating income 2,126 1,322

Other income and expense 200 126

Income before provision for income taxes 2,326 1,448

Provision for income taxes 745 444

Net income $1,581 $1,004

Earnings per common share: Basic $1.81 $1.17 Diluted $1.76 $1.14

Shares used in computing earnings per share (in thousands): Basic 875,860 857,691 Diluted 900,054 883,297

(1) Includes stock-based compensation expense as follows: Cost of sales $18 $6 Research and development $39 $16 Selling, general and administrative $53 $24


(in millions, except share amounts)

December 29, 2007 September 29, 2007


Current assets: Cash and cash equivalents $9,162 $9,352 Short-term investments 9,286 6,034 Accounts receivable, less allowances of $45 and $47, respectively 1,939 1,637 Inventories 459 346 Deferred tax assets 993 782 Other current assets 4,350 3,805 Total current assets 26,189 21,956

Property, plant and equipment, net 1,870 1,832 Goodwill 38 38 Acquired intangible assets, net 311 299 Other assets 1,631 1,222

Total assets $30,039 $25,347


Current liabilities: Accounts payable $5,366 $4,970 Accrued expenses 5,169 4,329 Total current liabilities 10,535 9,299 Non-current liabilities 2,700 1,516 Total liabilities 13,235 10,815

Commitments and contingencies

Shareholders' equity: Common stock, no par value; 1,800,000,000 shares authorized; 878,628,867 and 872,328,972 shares issued and outstanding, respectively 6,046 5,368 Retained earnings 10,684 9,101 Accumulated other comprehensive income 74 63

Total shareholders' equity 16,804 14,532

Total liabilities and shareholders' equity $30,039 $25,347


(in millions)

Three Months Ended December 29, 2007 December 30, 2006

Cash and cash equivalents, beginning of the period $9,352 $6,392 Operating Activities: Net income 1,581 1,004 Adjustments to reconcile net income to cash generated by operating activities: Depreciation, amortization, and accretion 106 74 Stock-based compensation expense 110 46 Provision for deferred income taxes 22 73 Loss on disposition of property, plant, and equipment 14 5 Changes in operating assets and liabilities: Accounts receivable, net (302) (369) Inventories (113) (33) Other current assets (550) 36 Other assets (253) 28 Accounts payable 484 495 Deferred revenue 1,048 199 Other liabilities 640 255

Cash generated by operating activities 2,787 1,813

Investing Activities: Purchases of short-term investments (6,127) (2,581) Proceeds from maturities of short-term investments 2,129 934 Proceeds from sales of investments 758 655 Purchases of long-term investments (9) - Payment for acquisition of property, plant, and equipment (224) (142) Payment for acquisition of intangible assets (8) (115) Other 19 15

Cash used in investing activities (3,462) (1,234)

Financing Activities: Proceeds from issuance of common stock 179 101 Excess tax benefits from stock-based compensation 315 87 Cash used to net share settle equity awards (9) -

Cash generated by financing activities 485 188

(Decrease) increase in cash and cash equivalents (190) 767

Cash and cash equivalents, end of the period $9,162 $7,159

Supplemental cash flow disclosure: Cash paid for income taxes, net $251 $114


(in millions)

December 29, 2007 September 29, 2007

Deferred revenue-current: iPhone and Apple TV $816 $346 AppleCare 467 430 Other 812 634 Total deferred revenue-current 2,095 1,410

Deferred revenue-non-current: iPhone and Apple TV 624 290 AppleCare 529 495 Other 40 45 Total deferred revenue-non-current 1,193 830

Total deferred revenue $3,288 $2,240

Apple Inc. Q1 2008 Unaudited Summary Data

Q4 2007 Q1 2007 Q1 2008 CPU Rev CPU Rev CPU Rev Operating Segments Units K $M Units K $M Units K $M Americas 965 $2,928 625 $3,521 841 $4,298 Europe 499 1,339 491 1,712 705 2,471 Japan 72 255 70 285 91 400 Retail 473 1,251 308 1,115 504 1,701 Other Segments (1) 155 444 112 482 178 738

Total Operating Segments 2,164 $6,217 1,606 $7,115 2,319 $9,608

Rev Rev Rev Units K $M Units K $M Units K $M Product Summary Desktops (2) 817 $1,195 637 $955 977 $1,515 Portables (3) 1,347 1,908 969 1,455 1,342 2,037 Subtotal CPUs 2,164 3,103 1,606 2,410 2,319 3,552 iPod 10,200 1,619 21,066 3,427 22,121 3,997 Other Music Related Products and Services (4) 601 634 808 iPhone and Related Products & Services (5) 1,119 118 - - 2,315 241 Peripherals and Other Hardware 346 297 382 Software, Service and Other Sales 430 347 628 Total Apple $6,217 $7,115 $9,608

Sequential Change Year/Year Change CPU CPU Operating Segments Units Revenue Units Revenue Americas -13% 47% 35% 22% Europe 41% 85% 44% 44% Japan 26% 57% 30% 40% Retail 7% 36% 64% 53% Other Segments (1) 15% 66% 59% 53% Total Operating Segments 7% 55% 44% 35%

Sequential Change Year/Year Change Units Revenue Units Revenue

Product Summary Desktops (2) 20% 27% 53% 59% Portables (3) - 0% 7% 38% 40% Subtotal CPUs 7% 14% 44% 47% iPod 117% 147% 5% 17% Other Music Related Products and Services (4) 34% 27% iPhone and Related Products & Services (5) 107% 104% NM NM Peripherals and Other Hardware 10% 29% Software, Service and Other Sales 46% 81% Total Apple 55% 35%

(1) Other Segments include Asia Pacific and FileMaker. (2) Includes iMac, eMac, Mac mini, Mac Pro, PowerMac and Xserve product lines. (3) Includes MacBook, iBook, MacBook Pro and PowerBook product lines. (4) Consists of iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories. (5) Units consist of iPhone handset sales; Revenue is derived from handset sales, carrier agreements, and Apple-branded and third-party iPhone accessories.

NM: Not Meaningful
--Source: Apple