April 16, 1997: Apple Loses $700 Million…Says the Future Looks Bright!

Apple loses $700 Million...Says the Future Looks Bright!

Apple needed a new operating system and was incapable of making one of their own. They also badly needed corporate restructuring. Deciding that it would be better to undertake both needed, but painful, steps at the same time, Gil Amelio gave the go-ahead to both plans.

The result was a staggering $708 million loss. It is never nice to see red on the books with that many zeros behind it, but Apple did get a lot for their money. $375 million went towards overpaying for, err, purchasing NeXT while the restructuring charges set Apple back a cool $155 million.

All the spending still left Apple with $1.4 billion in cash and Amelio predicted Apple would turn a profit the next quarter. Investors got the bad news about the loss this week in 1997.


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