Apple Suspends Dividend
CUPERTINO, Calif. (AP) _ Apple Computer Inc., the financially ailing computer maker, is wasting no time in instituting austerity measures under new chief executive Gilbert Amelio.
The company disclosed in a filing with the Securities and Exchange Commission that for the first time is suspending payment of its quarterly dividends to shareholders.
Apple said the 12-cent per common share dividend won’t be paid for the final three months of 1995 and the board doesn’t expect it will be paid ``in the near future given the financial condition of the company.″
In addition, the company said it may stop making some parts of its personal computers _ giving the work to outside contractors _ in an effort to return the company to profitability.
Apple, the world’s third largest personal computer maker, fired Michael Spindler as its chief executive earlier this month and replaced him with Amelio, formerly the head of National Semiconductor.
The company has faced a storm of criticism after suffering anemic sales growth in the last three months of 1995, usually the best time of year for PC makers.
It lost $69 million in that quarter and has forecast a bigger loss for the first three months, blaming uncertainty about whether it would be bought by Sun Microsystems Inc. for hurting sales.
There had been widespread reports for nearly a month that Sun, the leading maker of computer workstations used in engineering and research, was courting Apple. But Apple said last week that it is no longer in any merger talks.
Apple shares fell 25 cents to close at $28.12 1/2 on the Nasdaq Stock Market.