The ratings on Cupertino, Calif.-based Apple Computer Inc. reflect a conservative financial profile and significant financial flexibility, offset by extremely competitive personal computer (PC) industry conditions and limited global market share. While Apple's strategic and business risk profile has benefited from a stable and experienced management team, the company is still dependent on a relatively limited product base. Despite a very challenging industry environment, Apple restored profitability in 2001, after reporting a net loss of $195 million for the fiscal first quarter ended December 2000. Total revenues were $1.45 billion, with net income of $66 million in the quarter ended Sept. 29, 2001. Apple is expected to maintain a strong financial profile. The company has no near-term debt maturities and
