Apple suspends its dividend due to losses
Apple Computer Inc., struggling to turn back a tide of red ink, said it's suspending its quarterly dividend to shareholders for the first time ever and does not anticipate renewing the payout "in the near future."</br></br>The company also disclosed in filings with the Securities and Exchange Commission that its profit margins -- a crucial indicator of profitability -- could shrivel further from already depressed levels. It also said its access to financing is becoming tougher, adding that lenders may insist on stricter loan covenants in response to Apple's recent weak financial performance.</br></br>Apple shares fell 25 cents to close at $28.125 in Nasdaq Stock Market trading yesterday.</br></br>Apple has been making the quarterly dividend payouts since it first declared one in 1987; the latest payout was 12 cents a share. The suspension, disclosed in a late filing Monday with the SEC, comes after the Cupertino, Calif., computer maker reported a loss of $69 million, or 56 cents a share, for its first quarter ended Dec. 29. The suspension begins with that quarter, in which the loss resulted from a glut of unsold computers and fierce pricing wars around the world, among other factors.</br></br>With sales this year falling off as a result of customer uncertainty over its future, Apple recently said it expects an operating loss during the current quarter ending March 29 to "significantly exceed" the loss for the prior quarter. The company also has said it expects to incur charges of at least $125 million during this quarter for costs related to restructuring. Analysts say it may take two more quarters for the company to return to profitability under its new chief executive officer, Gilbert F. Amelio, who succeeded his ousted predecessor, Michael Spindler, earlier this month.