Apple Computer Corp. (BB/Stable/--) recently reported flat revenues of $1.4 billion for the fourth quarter ended Sept. 28, 2002, and a net loss of $45 million. Excluding nonrecurring items, net profit for the quarter would have been $7 million, compared to a net profit of $66 million a year ago. Standard&Poor's does not expect current earnings weakness to have an impact on Apple's ratings. Despite flat revenues and a declining income trend over the past four quarters, Apple has maintained cash balances in excess of $4 billion and a strong balance sheet. Apple's liquidity provides it with the financial flexibility to weather difficult market conditions and depressed IT spending. However, Standard&Poor's rating and outlook incorporate the
